Question 1

Partnership capital gains and losses are allocated separately to each of the partners.

Accepted Answer

A) True 
 B)False

Question 2

During 2014, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2014, and how many exemptions should he claim on his tax return?

Accepted Answer

A) Head of household and 2 exemptions 
B) Single and 2 exemptions 
C) Head of household and 1 exemption 
D) Single and 1 exemption 
E) None of the above 
A) Head of household and 2 exemptions 
B) Single and 2 exemptions 
C) Head of household and 1 exemption 
D) Single and 1 exemption 
E) None of the above

Question 3

The two types of exemptions are the personal exemption and the dependency exemption.

Accepted Answer

A) True 
 B)False

Question 4

Eugene and Velma are married. For 2014, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugene's itemized deductions are $11,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Velma's taxable income?

Accepted Answer

A) $19,850 
B) $22,050 
C) $23,800 
D) $26,000 
E) None of the above 
A) $19,850 
B) $22,050 
C) $23,800 
D) $26,000 
E) None of the above

Question 5

Taxpayers who do not qualify for married, head of household, or qualifying widow or widower filing status must file as single.

Accepted Answer

A) True 
 B)False

Question 6

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

Accepted Answer

A taxpayer should claim the la

Question 7

Which of the following taxpayers does not have to file a tax return for 2014?

Accepted Answer

A) A single taxpayer who is under age 65, with income of $10,500. 
B) Married taxpayers (ages 45 and 50 years), filing jointly, with income of $21,000. 
C) A student, age 22, with unearned income of $1,200 who is claimed as a dependent by her parents. 
D) A qualifying widow (age 67) with a dependent child and income of $14,500. 
E) All of the above. 
A) A single taxpayer who is under age 65, with income of $10,500. 
B) Married taxpayers (ages 45 and 50 years), filing jointly, with income of $21,000. 
C) A student, age 22, with unearned income of $1,200 who is claimed as a dependent by her parents. 
D) A qualifying widow (age 67) with a dependent child and income of $14,500. 
E) All of the above.

Question 8

Taxpayers with self-employment income of $400 or more must file a tax return.

Accepted Answer

A) True 
 B)False

Question 9

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.

Accepted Answer

A) True 
 B)False

Question 10

A child for whom a dependency exemption is claimed on the parents' tax return may also claim a personal exemption on his or her own tax return.

Accepted Answer

A) True 
 B)False

Question 11

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Accepted Answer

A) True 
 B)False

Question 12

State two reasons why a person would want to e-file their return instead of mailing it.

Accepted Answer

A return that is e-filed has a smaller e

Question 13

A corporation is a reporting entity but not a tax-paying entity.

Accepted Answer

A) True 
 B)False

Question 14

Alexis has a long-term capital loss of $13,000 on the sale of stock in 2014. She has no other capital gains or losses for the year. Her taxable income without this transaction is $57,000. What is her 2014 taxable income considering this capital loss?

Accepted Answer

A) $44,000 
B) $54,000 
C) $57,000 
D) $70,000 
E) Some other amount 
A) $44,000 
B) $54,000 
C) $57,000 
D) $70,000 
E) Some other amount

Question 15

List if a form is used for an individual, a corporation, or a partnership tax return.
a. Form 1065
b. Schedule A, Itemized Deductions
c. Form 1040
d. Form 1120
e. Schedule B, Interest and Dividends

Accepted Answer

a. Partnership
b. In

Question 16

Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2014?

Accepted Answer

A) $6,200 
B) $9,100 
C) $10,150 
D) $12,400 
E) None of the above 
A) $6,200 
B) $9,100 
C) $10,150 
D) $12,400 
E) None of the above

Question 17

If taxpayers are married and living together at the end of the year, they must file a joint tax return.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

Accepted Answer

A) Sister 
B) Adopted child 
C) Aunt 
D) Parent 
E) All of the above satisfy the test 
A) Sister 
B) Adopted child 
C) Aunt 
D) Parent 
E) All of the above satisfy the test

Question 19

Melissa is a 35-year-old single taxpayer with adjusted gross income of $49,600. She uses the standard deduction and has no dependents.
a. Calculate Melissa's 2014 taxable income. Please show your work.
b. When you calculate Melissa's tax liability, are you required to use the tax tables or the tax rate schedules, or does it matter?
c. What is Melissa's tax liability?

Accepted Answer

a. $39,450 = $49,600 - $6,200

Question 20

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

Accepted Answer

A) The deduction for job hunting expenses. 
B) The charitable deduction. 
C) The moving expense deduction for adjusted gross income. 
D) The deduction for soil and water conservation costs available to farmers. 
E) None of the above. 
A) The deduction for job hunting expenses. 
B) The charitable deduction. 
C) The moving expense deduction for adjusted gross income. 
D) The deduction for soil and water conservation costs available to farmers. 
E) None of the above.

Partnership capital gains and losses are allocated separately to each of the partners.

During 2014, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2014, and how many exemptions should he claim on his tax return?

The two types of exemptions are the personal exemption and the dependency exemption.

Taxpayers who do not qualify for married, head of household, or qualifying widow or widower filing status must file as single.

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

Which of the following taxpayers does not have to file a tax return for 2014?

Taxpayers with self-employment income of $400 or more must file a tax return.

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.

A child for whom a dependency exemption is claimed on the parents' tax return may also claim a personal exemption on his or her own tax return.

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

State two reasons why a person would want to e-file their return instead of mailing it.

A corporation is a reporting entity but not a tax-paying entity.

Alexis has a long-term capital loss of $13,000 on the sale of stock in 2014. She has no other capital gains or losses for the year. Her taxable income without this transaction is $57,000. What is her 2014 taxable income considering this capital loss?

List if a form is used for an individual, a corporation, or a partnership tax return. a. Form 1065 b. Schedule A, Itemized Deductions c. Form 1040 d. Form 1120 e. Schedule B, Interest and Dividends

Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2014?

If taxpayers are married and living together at the end of the year, they must file a joint tax return.

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

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

Partnership capital gains and losses are allocated separately to each of the partners.

During 2014, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2014, and how many exemptions should he claim on his tax return?

The two types of exemptions are the personal exemption and the dependency exemption.

Taxpayers who do not qualify for married, head of household, or qualifying widow or widower filing status must file as single.

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

Which of the following taxpayers does not have to file a tax return for 2014?

Taxpayers with self-employment income of $400 or more must file a tax return.

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.

A child for whom a dependency exemption is claimed on the parents' tax return may also claim a personal exemption on his or her own tax return.

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

State two reasons why a person would want to e-file their return instead of mailing it.

A corporation is a reporting entity but not a tax-paying entity.

Alexis has a long-term capital loss of $13,000 on the sale of stock in 2014. She has no other capital gains or losses for the year. Her taxable income without this transaction is $57,000. What is her 2014 taxable income considering this capital loss?

List if a form is used for an individual, a corporation, or a partnership tax return. a. Form 1065 b. Schedule A, Itemized Deductions c. Form 1040 d. Form 1120 e. Schedule B, Interest and Dividends

Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2014?

If taxpayers are married and living together at the end of the year, they must file a joint tax return.

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

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