Question 1

Under a dependent care assistance plan,the exclusion for a head of household taxpayer cannot exceed his or her earned income and:

Accepted Answer

A) $5,150. 
B) $5,250. 
C) $2,500. 
D) $5,000. 
A) $5,150. 
B) $5,250. 
C) $2,500. 
D) $5,000.

Question 2

The imputed interest rules do not apply to certain transactions.Name three situations where this is a true statement.

Accepted Answer

Examples of situations when the rules of

Question 3

What are cafeteria plans?

Accepted Answer

Flexible benefit plans,often called cafe

Question 4

Banks and credit unions report interest income to taxpayers on Form 1099-INT.

Accepted Answer

A) True 
 B)False

Question 5

Income may be realized in the form of:

Accepted Answer

A) Money. 
B) Property. 
C) Services. 
D) All of these. 
A) Money. 
B) Property. 
C) Services. 
D) All of these.

Question 6

Which one of the following items is not exempt under the umbrella of compensation for injuries or sickness?

Accepted Answer

A) Employer-provided adoption assistance. 
B) Payments received under workers' compensation acts. 
C) Payments received for damages as a result of personal physical injuries. 
D) Disability income received from a terrorist attack in a foreign country while employed by the U.S.government. 
A) Employer-provided adoption assistance. 
B) Payments received under workers' compensation acts. 
C) Payments received for damages as a result of personal physical injuries. 
D) Disability income received from a terrorist attack in a foreign country while employed by the U.S.government.

Question 7

Describe the various situations where a taxpayer must file a Schedule B Forms 1040A or 1040)when receiving interest income.

Accepted Answer

A taxpayer must use Schedule B Forms 104

Question 8

Payments under written dependent care assistance plans are tax-free,except that the exclusion for a single person cannot exceed his or her earned income and cannot exceed ________.

Accepted Answer

A) $5,150 
B) $5,000 
C) $2,500 
D) $5,250 
A) $5,150 
B) $5,000 
C) $2,500 
D) $5,250

Question 9

Receipt of property or services does not trigger income recognition for tax purposes.

Accepted Answer

A) True 
 B)False

Question 10

All federal and state unemployment compensation benefits are not subject to income tax.

Accepted Answer

A) True 
 B)False

Question 11

Almost all individuals use the cash receipts and disbursements method of accounting.

Accepted Answer

A) True 
 B)False

Question 12

A married,filing jointly taxpayer's lower limit of provisional income for social security purposes is:

Accepted Answer

A) $44,000. 
B) $32,000. 
C) $34,000. 
D) $25,000. 
A) $44,000. 
B) $32,000. 
C) $34,000. 
D) $25,000.

Question 13

If an individual owns Series EE bonds,this person must report interest income,i.e.,the increase in bond value on an annual basis.

Accepted Answer

A) True 
 B)False

Question 14

A taxpayer can exclude from gross income any interest earned on bonds issued by any state,any possession of the United States,any political subdivision of either of the foregoing,or of the District of Columbia as long as these bonds are not issued for private activities.

Accepted Answer

A) True 
 B)False

Question 15

Laura is a student at a state university.In 2016,she received a scholarship of $6,000 for tuition and fees and an assistantship for $3,000.What is the amount that Laura must report in income?

Accepted Answer

A) $9,000. 
B) $3,000. 
C) $6,000. 
D) $0. 
A) $9,000. 
B) $3,000. 
C) $6,000. 
D) $0.

Question 16

For tax purposes,one of the requirements to recognize income is:

Accepted Answer

A) The transaction must occur but it's not necessary to complete it. 
B) The income can be tax-exempt. 
C) There must be an economic benefit. 
D) All of these. 
A) The transaction must occur but it's not necessary to complete it. 
B) The income can be tax-exempt. 
C) There must be an economic benefit. 
D) All of these.

Question 17

Compensation for sickness or injury which is exempt from income includes:

Accepted Answer

A) Damages other than punitive damages)received as a result of personal physical injuries or sickness. 
B) Wages for sick days paid by an employer. 
C) Unemployment compensation payments. 
D) All of these. 
A) Damages other than punitive damages)received as a result of personal physical injuries or sickness. 
B) Wages for sick days paid by an employer. 
C) Unemployment compensation payments. 
D) All of these.

Question 18

Name three items that are exempt from income under the umbrella of compensation for injuries or sickness.

Accepted Answer

The following items are exempt from inco

Question 19

The following income item is not taxable:

Accepted Answer

A) Alimony. 
B) Sick Pay. 
C) Jury duty. 
D) Child support. 
A) Alimony. 
B) Sick Pay. 
C) Jury duty. 
D) Child support.

Question 20

Payments received under workers' compensation acts are taxable to the recipient.

Accepted Answer

A) True 
 B)False

Under a dependent care assistance plan,the exclusion for a head of household taxpayer cannot exceed his or her earned income and:

The imputed interest rules do not apply to certain transactions.Name three situations where this is a true statement.

What are cafeteria plans?

Banks and credit unions report interest income to taxpayers on Form 1099-INT.

Income may be realized in the form of:

Which one of the following items is not exempt under the umbrella of compensation for injuries or sickness?

Describe the various situations where a taxpayer must file a Schedule B Forms 1040A or 1040)when receiving interest income.

Payments under written dependent care assistance plans are tax-free,except that the exclusion for a single person cannot exceed his or her earned income and cannot exceed ________.

Receipt of property or services does not trigger income recognition for tax purposes.

All federal and state unemployment compensation benefits are not subject to income tax.

Almost all individuals use the cash receipts and disbursements method of accounting.

A married,filing jointly taxpayer's lower limit of provisional income for social security purposes is:

If an individual owns Series EE bonds,this person must report interest income,i.e.,the increase in bond value on an annual basis.

A taxpayer can exclude from gross income any interest earned on bonds issued by any state,any possession of the United States,any political subdivision of either of the foregoing,or of the District of Columbia as long as these bonds are not issued for private activities.

Laura is a student at a state university.In 2016,she received a scholarship of $6,000 for tuition and fees and an assistantship for $3,000.What is the amount that Laura must report in income?

For tax purposes,one of the requirements to recognize income is:

Compensation for sickness or injury which is exempt from income includes:

Name three items that are exempt from income under the umbrella of compensation for injuries or sickness.

The following income item is not taxable:

Payments received under workers' compensation acts are taxable to the recipient.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 3: Gross Income: Inclusions and Exclusions

Under a dependent care assistance plan,the exclusion for a head of household taxpayer cannot exceed his or her earned income and:

The imputed interest rules do not apply to certain transactions.Name three situations where this is a true statement.

What are cafeteria plans?

Banks and credit unions report interest income to taxpayers on Form 1099-INT.

Income may be realized in the form of:

Which one of the following items is not exempt under the umbrella of compensation for injuries or sickness?

Describe the various situations where a taxpayer must file a Schedule B Forms 1040A or 1040)when receiving interest income.

Payments under written dependent care assistance plans are tax-free,except that the exclusion for a single person cannot exceed his or her earned income and cannot exceed ________.

Receipt of property or services does not trigger income recognition for tax purposes.

All federal and state unemployment compensation benefits are not subject to income tax.

Almost all individuals use the cash receipts and disbursements method of accounting.

A married,filing jointly taxpayer's lower limit of provisional income for social security purposes is:

If an individual owns Series EE bonds,this person must report interest income,i.e.,the increase in bond value on an annual basis.

A taxpayer can exclude from gross income any interest earned on bonds issued by any state,any possession of the United States,any political subdivision of either of the foregoing,or of the District of Columbia as long as these bonds are not issued for private activities.

Laura is a student at a state university.In 2016,she received a scholarship of $6,000 for tuition and fees and an assistantship for $3,000.What is the amount that Laura must report in income?

For tax purposes,one of the requirements to recognize income is:

Compensation for sickness or injury which is exempt from income includes:

Name three items that are exempt from income under the umbrella of compensation for injuries or sickness.

The following income item is not taxable:

Payments received under workers' compensation acts are taxable to the recipient.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters