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

Peter forgot to file his tax return by April 15.He did not file an extension.Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500.What is Peter's failure to file penalty? Assume he made all his payments on time.

The basic standard deduction in 2016 for a taxpayer,under 65 and not blind,filing married filing jointly is:

To qualify for head of household status,a taxpayer must maintain a household that is the principal place of abode of a qualifying person for more than half the year.

The basic standard deduction in 2016 for a single taxpayer,under 65 and not blind,is:

What does the withholding amount on a taxable payment made to the taxpayer represent?

The tax code defines adjusted gross income AGI)as gross income minus a list of permitted deductions.

Luisa's parents can claim her as a dependent on their tax return.In 2016,her only source of income was a part-time job as a medical clerk where she earned $2,600 during the year.What is Luisa's standard deduction?

A married couple in the process of obtaining a divorce cannot file a joint tax return.

A taxpayer who either is 65 or older or blind can claim an additional standard deduction.

List and describe the four tests that a person must meet to qualify as a qualifying relative.

The tax tables stop at taxable income of $115,000.

The standard deduction in 2016 for a married couple,under 65 and not blind,is $12,600.

The taxpayer's spouse died at the beginning of 2016.He has no qualifying child.Which status should the taxpayer select when filing his tax return?

If a taxpayer's spouse dies during the tax year,the taxpayer must file as a qualifying widower).

The IRS can assess criminal penalties if fraud is found on a tax return.Name and describe at least two of those criminal penalties.

The amount of the standard deduction increases for people who are age 62 and have retired.

George is 21 years of age and a full-time student living with his parents.He had wages of $1,375 $140 of income tax withholding)for 2016.Can George claim his exemption on his return even though his parents will claim him as a dependent on their tax return?

Elisa is 21 years of age and a full-time student living with her parents.She had wages of $680 $70 of income tax withholding)for 2016.Can Elisa claim her exemption on her return even though her parents will claim her as a dependent on their tax return?

The interest charged by the IRS for the first three months of 2016 was:

A taxpayer can be claimed as a dependent on another return and still he or she can claim a personal exemption on his or her tax return.