Question 1

A single taxpayer is 35 years old and has only wages of $16,000.Which is the simplest form this person can file?

Accepted Answer

A) 1040A. 
B) 1040EZ. 
C) 1040. 
D) 1040ES. 
A) 1040A. 
B) 1040EZ. 
C) 1040. 
D) 1040ES. B

Question 2

Even though the taxpayer is claimed as a dependent on another tax return,he or she can still receive an exemption amount for himself or herself when filing his or her tax return.

Accepted Answer

A) True 
 B)False  False

Question 3

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2016.
1.Leo and Mary who are under 65 and filing a joint return.They have no dependents.
2.Sergio who is single.
3.Peter who is over 65 and single.
4.Anna who is 38 and filing as head of household with a dependent child.
5.Frank who is 45 and blind and is filing as married filing separately.

Accepted Answer

1.$12,600. 2.$6,300. 3.$7,850 $6,300 plus the additional amount of $1,550).4.$9,300. 5.$7,550 $6,300 plus the additional amount of $1,250).

Question 4

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2016?

Accepted Answer

The taxpayer can only claim a

Question 5

Which of the following items would not be considered as support for a dependency exemption?

Accepted Answer

A) food. 
B) clothing. 
C) medical insurance premiums. 
D) life insurance premiums. 
A) food. 
B) clothing. 
C) medical insurance premiums. 
D) life insurance premiums.

Question 6

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

Accepted Answer

A) $25,701. 
B) $25,354. 
C) $31,056. 
D) $18,634. 
A) $25,701. 
B) $25,354. 
C) $31,056. 
D) $18,634.

Question 7

Which condition listed below is not required for a taxpayer to qualify as a qualifying widower)with dependent child?

Accepted Answer

A) The household was the principal place of abode for the entire year of both the taxpayer and his or her child. 
B) Taxpayer paid more than half the cost of keeping up a household. 
C) Taxpayer was eligible to file a joint return in the year the spouse died. 
D) Taxpayer must remarry before the end of the tax year in question. 
A) The household was the principal place of abode for the entire year of both the taxpayer and his or her child. 
B) Taxpayer paid more than half the cost of keeping up a household. 
C) Taxpayer was eligible to file a joint return in the year the spouse died. 
D) Taxpayer must remarry before the end of the tax year in question.

Question 8

What is the amount of the tax liability for a qualifying widower)with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.

Accepted Answer

A) $21,943. 
B) $30,400. 
C) $27,665. 
D) $25,234. 
A) $21,943. 
B) $30,400. 
C) $27,665. 
D) $25,234.

Question 9

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.

Accepted Answer

A) 20% 
B) 75% 
C) 25% 
D) 5% 
A) 20% 
B) 75% 
C) 25% 
D) 5%

Question 10

Personal exemptions are for the taxpayer and spouse.

Accepted Answer

A) True 
 B)False

Question 11

Severin,who is 20 years old and a full- time student,is claimed by his parent as a dependent.However,in 2016,he earned $5,350.What is the amount of the personal exemption that he can claim on his tax return?

Accepted Answer

A) $5,400. 
B) $0. 
C) $4,050. 
D) $1,050. 
A) $5,400. 
B) $0. 
C) $4,050. 
D) $1,050.

Question 12

Robert,Fred and Lucas are supporting their mother who lives in a separate apartment.Their contributions towards her support are 10%,40% and 50%,respectively.In a multiple support agreement,who would be entitled to claim the mother as a dependent?

Accepted Answer

A) Robert,Fred or Lucas. 
B) Fred or Lucas. 
C) Robert. 
D) None of these. 
A) Robert,Fred or Lucas. 
B) Fred or Lucas. 
C) Robert. 
D) None of these.

Question 13

When a taxpayer can be claimed as a dependent on the tax return of another individual,the basic standard deduction for the taxpayer is limited to the greater of a),or b)the taxpayer's earned income plus $350,but not more than the amount of the basic standard deduction.

Accepted Answer

A) $1,050 
B) $1,000 
C) $350 
D) $950 
A) $1,050 
B) $1,000 
C) $350 
D) $950

Question 14

A taxpayer must be married to claim Head of Household status.

Accepted Answer

A) True 
 B)False

Question 15

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is not part of the three general tests?

Accepted Answer

A) Citizen or resident test. 
B) Joint return test. 
C) Support test. 
D) Dependent taxpayer test. 
A) Citizen or resident test. 
B) Joint return test. 
C) Support test. 
D) Dependent taxpayer test.

Question 16

Even if the total of the itemized deductions is lower than the standard deduction,a taxpayer should choose to itemize on his or her tax return.

Accepted Answer

A) True 
 B)False

Question 17

A taxpayer is married with a qualifying child dependent),but she has been living separate from her spouse for the last five months of the year.However,she paid for more than half of the cost of keeping up the household.Her spouse does not want to file jointly.What filing status must she use when filing her tax return? She wants to obtain the maximum legal benefit.

Accepted Answer

A) Single. 
B) Head of Household. 
C) Qualifying Widower). 
D) Married Filing Separately. 
A) Single. 
B) Head of Household. 
C) Qualifying Widower). 
D) Married Filing Separately.

Question 18

A taxpayer may request an automatic seven-month extension of time to file his or her tax return.

Accepted Answer

A) True 
 B)False

Question 19

Mirtha is 21 years of age and a full-time student living by herself.She had wages of $25,000 for 2016.Can Mirtha claim the exemption for herself on her tax return?

Accepted Answer

A) Both,Mirtha and her parents can claim the exemption. 
B) Mirtha's parents can claim the exemption. 
C) No one can claim the exemption for Mirtha. 
D) Yes,Mirtha can claim the exemption. 
A) Both,Mirtha and her parents can claim the exemption. 
B) Mirtha's parents can claim the exemption. 
C) No one can claim the exemption for Mirtha. 
D) Yes,Mirtha can claim the exemption.

Question 20

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?

Accepted Answer

A) 1040A. 
B) 1040EZ. 
C) 1040. 
D) 1040ES. 
A) 1040A. 
B) 1040EZ. 
C) 1040. 
D) 1040ES.

A single taxpayer is 35 years old and has only wages of $16,000.Which is the simplest form this person can file?

Even though the taxpayer is claimed as a dependent on another tax return,he or she can still receive an exemption amount for himself or herself when filing his or her tax return.

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2016?

Which of the following items would not be considered as support for a dependency exemption?

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

Which condition listed below is not required for a taxpayer to qualify as a qualifying widower)with dependent child?

What is the amount of the tax liability for a qualifying widower)with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.

Personal exemptions are for the taxpayer and spouse.

Severin,who is 20 years old and a full- time student,is claimed by his parent as a dependent.However,in 2016,he earned $5,350.What is the amount of the personal exemption that he can claim on his tax return?

Robert,Fred and Lucas are supporting their mother who lives in a separate apartment.Their contributions towards her support are 10%,40% and 50%,respectively.In a multiple support agreement,who would be entitled to claim the mother as a dependent?

When a taxpayer can be claimed as a dependent on the tax return of another individual,the basic standard deduction for the taxpayer is limited to the greater of a),or b)the taxpayer's earned income plus $350,but not more than the amount of the basic standard deduction.

A taxpayer must be married to claim Head of Household status.

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is not part of the three general tests?

Even if the total of the itemized deductions is lower than the standard deduction,a taxpayer should choose to itemize on his or her tax return.

A taxpayer may request an automatic seven-month extension of time to file his or her tax return.

Mirtha is 21 years of age and a full-time student living by herself.She had wages of $25,000 for 2016.Can Mirtha claim the exemption for herself on her tax return?

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?

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

Gross Income: Inclusions and Exclusions

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

A single taxpayer is 35 years old and has only wages of $16,000.Which is the simplest form this person can file?

Even though the taxpayer is claimed as a dependent on another tax return,he or she can still receive an exemption amount for himself or herself when filing his or her tax return.

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2016?

Which of the following items would not be considered as support for a dependency exemption?

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

Which condition listed below is not required for a taxpayer to qualify as a qualifying widower)with dependent child?

What is the amount of the tax liability for a qualifying widower)with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.

Personal exemptions are for the taxpayer and spouse.

Severin,who is 20 years old and a full- time student,is claimed by his parent as a dependent.However,in 2016,he earned $5,350.What is the amount of the personal exemption that he can claim on his tax return?

Robert,Fred and Lucas are supporting their mother who lives in a separate apartment.Their contributions towards her support are 10%,40% and 50%,respectively.In a multiple support agreement,who would be entitled to claim the mother as a dependent?

When a taxpayer can be claimed as a dependent on the tax return of another individual,the basic standard deduction for the taxpayer is limited to the greater of a),or b)the taxpayer's earned income plus $350,but not more than the amount of the basic standard deduction.

A taxpayer must be married to claim Head of Household status.

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is not part of the three general tests?

Even if the total of the itemized deductions is lower than the standard deduction,a taxpayer should choose to itemize on his or her tax return.

A taxpayer may request an automatic seven-month extension of time to file his or her tax return.

Mirtha is 21 years of age and a full-time student living by herself.She had wages of $25,000 for 2016.Can Mirtha claim the exemption for herself on her tax return?

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?

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

Gross Income: Inclusions and Exclusions

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