Question 1

For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 2

The 0.9 percent ACA Medicare surtax applies to:

Accepted Answer

A) Earned income 
B) Tax exempt income 
C) Gain on the sale of a principal residence 
D) IRA distributions 
A) Earned income 
B) Tax exempt income 
C) Gain on the sale of a principal residence 
D) IRA distributions

Question 3

Karen is single and earns wages of $250,000 in 2014. She has no other income. How much is her ACA Medicare surtax on earned income?

Accepted Answer

$450 = 0.9

Question 4

The IRS:

Accepted Answer

A) requires official tax forms be obtained at the local IRS office. 
B) links to the H & R Block Web site. 
C) provides information on how to choose a stock. 
D) has an app for mobile phones. 
A) requires official tax forms be obtained at the local IRS office. 
B) links to the H & R Block Web site. 
C) provides information on how to choose a stock. 
D) has an app for mobile phones.

Question 5

Taxpayers can download tax forms from the IRS Internet site.

Accepted Answer

A) True 
 B)False

Question 6

In 2013, the Affordable Care Act (ACA) added a new Medicare surtax of 3.8 percent on net investment income.

Accepted Answer

A) True 
 B)False

Question 7

Depending on the amounts of income and other tax information, some individuals may report their income on:

Accepted Answer

A) Form 1040A 
B) Form 1065 
C) Form 1120 
D) Form 1041 
A) Form 1040A 
B) Form 1065 
C) Form 1120 
D) Form 1041

Question 8

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Accepted Answer

A) The relative must receive less than $3,950 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above. 
A) The relative must receive less than $3,950 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above.

Question 9

An individual is a head of household. What is her standard deduction?

Accepted Answer

A) $6,200 
B) $9,100 
C) $12,400 
D) $14,800 
E) None of the above 
A) $6,200 
B) $9,100 
C) $12,400 
D) $14,800 
E) None of the above

Question 10

The head of household tax rates are higher than the rates for a single taxpayer.

Accepted Answer

A) True 
 B)False

Question 11

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2014 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2014?
​
Why?

Accepted Answer

Yes. Monica must fil

Question 12

If a taxpayer's adjusted gross income exceeds certain threshold amounts, he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2014.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a goal of the tax law?

Accepted Answer

A) Encouraging certain social goals such as contributions to charity. 
B) Encouraging certain economic goals such as a thriving business community. 
C) Encouraging smaller families. 
D) Raising revenue to operate the government. 
E) None of the above are goals of the tax law. 
A) Encouraging certain social goals such as contributions to charity. 
B) Encouraging certain economic goals such as a thriving business community. 
C) Encouraging smaller families. 
D) Raising revenue to operate the government. 
E) None of the above are goals of the tax law.

Question 14

Which of the following is not a test that must be met for a child to be considered a dependent?

Accepted Answer

A) Age test 
B) Domicile test 
C) Citizenship test 
D) Relationship test 
E) Blood test 
A) Age test 
B) Domicile test 
C) Citizenship test 
D) Relationship test 
E) Blood test

Question 15

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 Eugene's taxable income?

Accepted Answer

A) $9,850 
B) $13,800 
C) $14,850 
D) $18,800 
E) None of the above 
A) $9,850 
B) $13,800 
C) $14,850 
D) $18,800 
E) None of the above

Question 16

Mike purchased stock in MDH Corporation 5 years ago for $15,500. This year he sold it for $12,800 and then paid a $250 sales commission to his broker. He had no other capital gains or losses during the year.
a. What is Mike's amount realized?
b. What is Mike's adjusted basis?
c. What is Mike's realized gain or loss?
d. What is Mike's recognized gain or loss?
e. How much of the gain or loss can Mike report in his tax return?

Accepted Answer

a. Amount realized: $12,550 = $12,800 -

Question 17

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

Accepted Answer

A) The taxpayer's filing status. 
B) The taxpayer's gross income. 
C) The taxpayer's total itemized deductions. 
D) The availability of the additional standard deduction for taxpayers who are elderly. 
E) None of the above. 
A) The taxpayer's filing status. 
B) The taxpayer's gross income. 
C) The taxpayer's total itemized deductions. 
D) The availability of the additional standard deduction for taxpayers who are elderly. 
E) None of the above.

Question 18

Mark a "Yes" to each of the following if it is an objective of the tax code. Otherwise mark with a "No."
a. To provide a car to each American.
b. To promote giving to charities.
c. To encourage taxpayers to send their children to college.
d. To raise money to operate the government.
e. To promote the use of solar energy.

Accepted Answer

a. No
b. Y

Question 19

If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Accepted Answer

A) True 
 B)False

Question 20

Your standard deduction will be $6,200 in 2014 if you are:

Accepted Answer

A) Single and 67 years old. 
B) Single and 45 years old. 
C) Single, 27 years old and blind. 
D) A nonresident alien. 
E) A married individual filing a separate return and your spouse itemizes his deductions. 
A) Single and 67 years old. 
B) Single and 45 years old. 
C) Single, 27 years old and blind. 
D) A nonresident alien. 
E) A married individual filing a separate return and your spouse itemizes his deductions.

For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

The 0.9 percent ACA Medicare surtax applies to:

Karen is single and earns wages of $250,000 in 2014. She has no other income. How much is her ACA Medicare surtax on earned income?

The IRS:

Taxpayers can download tax forms from the IRS Internet site.

In 2013, the Affordable Care Act (ACA) added a new Medicare surtax of 3.8 percent on net investment income.

Depending on the amounts of income and other tax information, some individuals may report their income on:

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

An individual is a head of household. What is her standard deduction?

The head of household tax rates are higher than the rates for a single taxpayer.

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2014 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2014? Why?

If a taxpayer's adjusted gross income exceeds certain threshold amounts, he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2014.

Which of the following is not a goal of the tax law?

Which of the following is not a test that must be met for a child to be considered a dependent?

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Your standard deduction will be $6,200 in 2014 if you are:

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

For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

The 0.9 percent ACA Medicare surtax applies to:

Karen is single and earns wages of $250,000 in 2014. She has no other income. How much is her ACA Medicare surtax on earned income?

The IRS:

Taxpayers can download tax forms from the IRS Internet site.

In 2013, the Affordable Care Act (ACA) added a new Medicare surtax of 3.8 percent on net investment income.

Depending on the amounts of income and other tax information, some individuals may report their income on:

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

An individual is a head of household. What is her standard deduction?

The head of household tax rates are higher than the rates for a single taxpayer.

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2014 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2014? ​ Why?

If a taxpayer's adjusted gross income exceeds certain threshold amounts, he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2014.

Which of the following is not a goal of the tax law?

Which of the following is not a test that must be met for a child to be considered a dependent?

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Your standard deduction will be $6,200 in 2014 if you are:

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

Monica is a maid in a San Francisco hotel. Monica received $500 in unreported tips during 2014 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including tips, is $4,500. Is Monica required to file an income tax return for 2014? Why?