Question 1

For filing status purposes,the taxpayer's marital status is determined at what point during the year?

Accepted Answer

A) the beginning of the year 
B) the end of the year 
C) the middle of the year 
D) None of these 
A) the beginning of the year 
B) the end of the year 
C) the middle of the year 
D) None of these

Question 2

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent mother and/or father.

Accepted Answer

A) True 
 B)False

Question 3

Miguel,a widower whose wife died in year 1,maintains a household for himself and his daughter who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in year 3?

Accepted Answer

A) Single 
B) Qualifying widower 
C) Head household 
D) Married,filing separately 
A) Single 
B) Qualifying widower 
C) Head household 
D) Married,filing separately

Question 4

All of the following are tests for determining qualifying relative status except ______.

Accepted Answer

A) Relationship test 
B) Gross income test 
C) Support test 
D) Residence test 
A) Relationship test 
B) Gross income test 
C) Support test 
D) Residence test

Question 5

Which of the following statements regarding personal and dependency exemptions is false?

Accepted Answer

A) A married couple filing jointly may claim two personal exemptions. 
B) To qualify as a dependent of another,an individual must be a resident of the United States. 
C) An individual who qualifies as a dependent of another taxpayer may not claim a personal exemption. 
D) An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds the exemption amount.To qualify as a dependent of another,an individual must be a resident of the United States,Canada,or Mexico.Also,there is no gross income test for a qualifying child. 
A) A married couple filing jointly may claim two personal exemptions. 
B) To qualify as a dependent of another,an individual must be a resident of the United States. 
C) An individual who qualifies as a dependent of another taxpayer may not claim a personal exemption. 
D) An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds the exemption amount.To qualify as a dependent of another,an individual must be a resident of the United States,Canada,or Mexico.Also,there is no gross income test for a qualifying child.

Question 6

A child who is her parents' qualifying child can claim a personal exemption for herself as long as her parents choose not to claim her as a dependent.

Accepted Answer

A) True 
 B)False

Question 7

Tax credits are generally more valuable than tax deductions because tax credits reduce a taxpayer's gross tax liability dollar for dollar while tax deductions do not.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Accepted Answer

A) The relationship requirement is more broadly defined (more inclusive) for qualifying relatives than for qualifying children. 
B) Qualifying children are subject to age restrictions while qualifying relatives are not. 
C) The support test for qualifying relatives focuses on the support the potential dependent self provides while the support test for qualifying children focuses on the support the taxpayer provides. 
D) Qualifying relatives are subject to a gross income restriction while qualifying children are not.The support test for a qualifying child considers the amount of support the child provided for herself.The support test for a qualifying relative considers the amount of support the taxpayer provided for the prospective dependent. 
A) The relationship requirement is more broadly defined (more inclusive) for qualifying relatives than for qualifying children. 
B) Qualifying children are subject to age restrictions while qualifying relatives are not. 
C) The support test for qualifying relatives focuses on the support the potential dependent self provides while the support test for qualifying children focuses on the support the taxpayer provides. 
D) Qualifying relatives are subject to a gross income restriction while qualifying children are not.The support test for a qualifying child considers the amount of support the child provided for herself.The support test for a qualifying relative considers the amount of support the taxpayer provided for the prospective dependent.

Question 9

Sally received $50,000 of compensation from her employer and she received $400 of interest from a corporate bond.What is the amount of Sally's gross income from these items?

Accepted Answer

A) $0 
B) $400 
C) $50,000 
D) $50,400 
A) $0 
B) $400 
C) $50,000 
D) $50,400

Question 10

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year,the taxpayer will qualify for head of household filing status.

Accepted Answer

A) True 
 B)False

Question 11

Jamison's gross tax liability is $7,000.Jamison had $2,000 of available credits and he had $4,000 of taxes withheld by his employer.What is Jamison's taxes due (or taxes refunded) with his tax return?

Accepted Answer

A) $5,000 taxes due. 
B) $1,000 taxes due. 
C) $1,000 tax refund. 
D) $3,000 taxes due.Gross tax liability minus credits minus payments equals taxes due ($7,000 - 2,000 - 4,000 = $1,000 taxes due) . 
A) $5,000 taxes due. 
B) $1,000 taxes due. 
C) $1,000 tax refund. 
D) $3,000 taxes due.Gross tax liability minus credits minus payments equals taxes due ($7,000 - 2,000 - 4,000 = $1,000 taxes due) .

Question 12

Certain types of income are taxed at a lower rate than ordinary income.

Accepted Answer

A) True 
 B)False

For filing status purposes,the taxpayer's marital status is determined at what point during the year?

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent mother and/or father.

Miguel,a widower whose wife died in year 1,maintains a household for himself and his daughter who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in year 3?

All of the following are tests for determining qualifying relative status except ______.

Which of the following statements regarding personal and dependency exemptions is false?

A child who is her parents' qualifying child can claim a personal exemption for herself as long as her parents choose not to claim her as a dependent.

Tax credits are generally more valuable than tax deductions because tax credits reduce a taxpayer's gross tax liability dollar for dollar while tax deductions do not.

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Sally received $50,000 of compensation from her employer and she received $400 of interest from a corporate bond.What is the amount of Sally's gross income from these items?

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year,the taxpayer will qualify for head of household filing status.

Jamison's gross tax liability is $7,000.Jamison had $2,000 of available credits and he had $4,000 of taxes withheld by his employer.What is Jamison's taxes due (or taxes refunded) with his tax return?

Certain types of income are taxed at a lower rate than ordinary income.

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters

Exam 4: Individual Tax Overview

For filing status purposes,the taxpayer's marital status is determined at what point during the year?

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent mother and/or father.

Miguel,a widower whose wife died in year 1,maintains a household for himself and his daughter who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in year 3?

All of the following are tests for determining qualifying relative status except ______.

Which of the following statements regarding personal and dependency exemptions is false?

A child who is her parents' qualifying child can claim a personal exemption for herself as long as her parents choose not to claim her as a dependent.

Tax credits are generally more valuable than tax deductions because tax credits reduce a taxpayer's gross tax liability dollar for dollar while tax deductions do not.

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Sally received $50,000 of compensation from her employer and she received $400 of interest from a corporate bond.What is the amount of Sally's gross income from these items?

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year,the taxpayer will qualify for head of household filing status.

Jamison's gross tax liability is $7,000.Jamison had $2,000 of available credits and he had $4,000 of taxes withheld by his employer.What is Jamison's taxes due (or taxes refunded) with his tax return?

Certain types of income are taxed at a lower rate than ordinary income.

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters