Question 1

Electronically filed tax returns:

Accepted Answer

A) May not be transmitted from a taxpayer's home computer. 
B) Constitute more than 90 percent of the returns filed with the IRS. 
C) Have error rates similar to paper returns. 
D) Offer faster refunds than paper returns. 
A) May not be transmitted from a taxpayer's home computer. 
B) Constitute more than 90 percent of the returns filed with the IRS. 
C) Have error rates similar to paper returns. 
D) Offer faster refunds than paper returns. D

Question 2

Wesley owns and operates the Cheshire Chicken Ranch in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:

Accepted Answer

A) Form 1040EZ 
B) Form 1040A 
C) Form 1040 
D) Form 1065 
E) None of the above 
A) Form 1040EZ 
B) Form 1040A 
C) Form 1040 
D) Form 1065 
E) None of the above C

Question 3

Mary is age 33 and a single taxpayer with adjusted gross income for 2014 of $27,100. Mary maintains a home for three dependent children and has itemized deductions of $3,000. Calculate the following amounts for Mary's 2014 income tax return:
a.The number of exemptions claimed
b.Mary's standard or itemized deduction amount
c.Mary's taxable income

Accepted Answer

​

Question 4

During 2014, Howard maintained his home in which he and his 16 year-old son resided. The son qualifies as his dependent. Howard's wife died in 2013. What is his filing status for 2014?

Accepted Answer

A) Single 
B) Head of household 
C) Married, filing separately 
D) Qualifying widow(er) 
E) None of the above. 
A) Single 
B) Head of household 
C) Married, filing separately 
D) Qualifying widow(er) 
E) None of the above.

Question 5

If an individual wishes to amend his individual tax return, he will make the amendment using what form?

Accepted Answer

A) Form 1040A 
B) Form 1040X 
C) Form 1120 
D) Schedule K-1 
E) None of the above 
A) Form 1040A 
B) Form 1040X 
C) Form 1120 
D) Schedule K-1 
E) None of the above

Question 6

In which of the following situations is the taxpayer not required to file a 2014 income tax return?

Accepted Answer

A) When an individual has a current year income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800. 
C) When the taxpayer is a 35-year-old head of household with wages of $16,800. 
D) When the taxpayer is a 79-year-old widow with wages of $16,500. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $23,000. 
A) When an individual has a current year income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800. 
C) When the taxpayer is a 35-year-old head of household with wages of $16,800. 
D) When the taxpayer is a 79-year-old widow with wages of $16,500. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $23,000.

Question 7

Barry is age 45 and a single taxpayer. In 2014, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims one exemption on his 2014 income tax return, calculate the following amounts:
a.His personal exemption amount
b.Barry's taxable income

Accepted Answer

The answer of Barry is age 45 and a single...

Question 8

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Accepted Answer

A) Single 
B) Head of household 
C) Qualifying widow(er) 
D) Married, filing separately 
E) None of the above 
A) Single 
B) Head of household 
C) Qualifying widow(er) 
D) Married, filing separately 
E) None of the above

Question 9

Curt and Linda were married on December 31, 2014. What are their options for filing status for their 2014 taxes?

Accepted Answer

They may file either as marrie

Question 10

For 2014, personal and dependency exemptions are $3,950 each.

Accepted Answer

A) True 
 B)False

Question 11

Match the letter of the filing status to the taxpayers below. Items may be used more than once.
-The US federal tax law's sole purpose is to raise revenue.​

Accepted Answer

A) True 
 B)False

Question 12

For each of the following situations, indicate whether the taxpayer(s) is(are) required to file a tax return for 2014. Explain your answer.
a.​Debra, age 68, and Jerry, age 70, are married and file a joint return. They received $24,000 in interest income from a savings account.
b.Margie is a single taxpayer with wages in 2014 of $8,400 and interest income of $200.
c.​Janie, age 30, and Scott, age 28, are married and file a joint tax return. They had $17,000 in earnings from wages.
d.​Kim, age 20, is a single college student who is claimed as a dependent by her parents. She earned $2,000 from a part-time job and has $450 in interest income.
e.​Stefanie, a 25-year-old single taxpayer, has wages of $1,500, from which $80 of federal income tax was withheld.

Accepted Answer

The answer of For each of the following situations, indicate...

Question 13

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

Accepted Answer

A) True 
 B)False

Question 14

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment.
a. Can she claim him as a dependent?
b. Can she claim head of household filing status? Why or why not?

Accepted Answer

a. Yes, her son qualifies as a

Question 15

Most states are community property states.

Accepted Answer

A) True 
 B)False

Question 16

An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student for purposes of determining whether a dependency exemption is permitted.

Accepted Answer

A) True 
 B)False

Question 17

Fran bought stock in the FCM Corporation 4 years ago at a price of $18,000. She sold it this year for $22,500 and paid her broker $225 from the proceeds of the sale.
a. What is Fran's amount realized?
b. What is Fran's adjusted basis?
c. What is Fran's realized gain or loss?
d. What is Fran's recognized gain or loss?
e. How much of the gain or loss should be included in her tax return?

Accepted Answer

a. Amount realized: $22,275 = $22,500 -

Question 18

The maximum official individual income tax rate for 2014 is 39.6 percent, not including the Medicare surtax on net investment income.

Accepted Answer

A) True 
 B)False

Question 19

Irma, widowed in 2013, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2014?

Accepted Answer

A) Single 
B) Married, filing separate 
C) Head of household 
D) Qualifying widow(er) 
E) None of the above 
A) Single 
B) Married, filing separate 
C) Head of household 
D) Qualifying widow(er) 
E) None of the above

Question 20

Which of the following forms may be filed by individual taxpayers?

Accepted Answer

A) Form 1040 
B) Form 1041 
C) Form 1065 
D) Form 1120 
E) None of the above 
A) Form 1040 
B) Form 1041 
C) Form 1065 
D) Form 1120 
E) None of the above

Electronically filed tax returns:

Wesley owns and operates the Cheshire Chicken Ranch in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:

During 2014, Howard maintained his home in which he and his 16 year-old son resided. The son qualifies as his dependent. Howard's wife died in 2013. What is his filing status for 2014?

If an individual wishes to amend his individual tax return, he will make the amendment using what form?

In which of the following situations is the taxpayer not required to file a 2014 income tax return?

Barry is age 45 and a single taxpayer. In 2014, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims one exemption on his 2014 income tax return, calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Curt and Linda were married on December 31, 2014. What are their options for filing status for their 2014 taxes?

For 2014, personal and dependency exemptions are $3,950 each.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The US federal tax law's sole purpose is to raise revenue.

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment. a. Can she claim him as a dependent? b. Can she claim head of household filing status? Why or why not?

Most states are community property states.

An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student for purposes of determining whether a dependency exemption is permitted.

The maximum official individual income tax rate for 2014 is 39.6 percent, not including the Medicare surtax on net investment income.

Irma, widowed in 2013, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2014?

Which of the following forms may be filed by individual taxpayers?

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 1: The Individual Income Tax Return

Electronically filed tax returns:

Wesley owns and operates the Cheshire Chicken Ranch in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:

During 2014, Howard maintained his home in which he and his 16 year-old son resided. The son qualifies as his dependent. Howard's wife died in 2013. What is his filing status for 2014?

If an individual wishes to amend his individual tax return, he will make the amendment using what form?

In which of the following situations is the taxpayer not required to file a 2014 income tax return?

Barry is age 45 and a single taxpayer. In 2014, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims one exemption on his 2014 income tax return, calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Curt and Linda were married on December 31, 2014. What are their options for filing status for their 2014 taxes?

For 2014, personal and dependency exemptions are $3,950 each.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The US federal tax law's sole purpose is to raise revenue.​

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment. a. Can she claim him as a dependent? b. Can she claim head of household filing status? Why or why not?

Most states are community property states.

An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student for purposes of determining whether a dependency exemption is permitted.

The maximum official individual income tax rate for 2014 is 39.6 percent, not including the Medicare surtax on net investment income.

Irma, widowed in 2013, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2014?

Which of the following forms may be filed by individual taxpayers?

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The US federal tax law's sole purpose is to raise revenue.