Exam 1: The Individual Income Tax Return

Roger, age 39, and Lucy, age 37, are married taxpayers who file a joint income tax return for 2014. They have gross income of $26,100. Their deductions for adjusted gross income are $550 and they have itemized deductions of $5,400. If Roger and Lucy claim two personal exemptions and no dependency exemptions for 2014, calculate the following amounts: a.Their adjusted gross income b.The greater of the amount of their standard deduction or their itemized deductions c.Their taxable income

(Essay)

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Question 61

Ronald is 92 years old and in poor health. Clever investing earlier in his life has left him with a sizeable income. He is able to support his son Ed. Ed is 67 years old and a bit "confused," so he lives in a nursing home. Ed's income is less than $2,000. How many exemptions should Ronald claim on his tax return?

(Multiple Choice)

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Question 62

Norman and Linda are married taxpayers with taxable income of $126,000 in 2014. a. When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter? b. What is their tax liability?

(Essay)

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Question 63

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

(True/False)

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Question 64

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:

(Multiple Choice)

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Question 65

A dependent child with earned income in excess of the available standard deduction amount must file a tax return.

(True/False)

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Question 66

Internet users can sign on to http://www.irs.gov/ and:

(Multiple Choice)

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Question 67

Clay purchased Elm Corporation stock 20 years ago for $10,000. In 2014, he sells the stock for $29,000. What is Clay's gain or loss?

(Multiple Choice)

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Question 68

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer is unmarried and is living with his girlfriend.

(Multiple Choice)

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Question 69

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer is married, but her husband disappeared with a girlfriend while on vacation in March of the current year. The taxpayer has no dependents.

(Multiple Choice)

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Question 70

A taxpayer with self-employment income of $600 must file a tax return.

(True/False)

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Question 71

A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.

(True/False)

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Question 72

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -After living together for 6 months, the couple married December 31.

(Multiple Choice)

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Question 73

What is the formula for computing taxable income, as summarized in the text?

(Essay)

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Question 74

During 2013, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?

(Multiple Choice)

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Question 75

Steven, age 35 and single, is a commodities broker. His salary for 2014 is $111,000 and he has taxable interest income of $40,000. He has no deductions for adjusted gross income. His itemized deductions are $31,000. Steven does not have any dependents. a.What is the amount of his adjusted gross income? b.What are his allowable itemized deductions? c.What is his deduction for personal exemptions? d.What is his taxable income? e.What is his regular tax liability from the tax rate schedules?

(Essay)

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Question 76

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

(True/False)

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Question 77

All taxpayers may use the tax rate schedule to determine their tax liability.

(True/False)

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Question 78

Nathan is 24 years old and works as an accountant in a salmon cannery in Alaska. His total wages for 2014 were $32,000. Federal income tax of $4,500 was withheld from his wages. His only other income was $260 of interest and he had no deductible expenses. Calculate the income tax due or income tax refund on Nathan's 2014 individual income tax return. Use the tax formula for individuals and show your work.

(Essay)

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Question 79

William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 125

Norman and Linda are married taxpayers with taxable income of $126,000 in 2014. a. When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter? b. What is their tax liability?

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:

A dependent child with earned income in excess of the available standard deduction amount must file a tax return.

Internet users can sign on to http://www.irs.gov/ and:

Clay purchased Elm Corporation stock 20 years ago for $10,000. In 2014, he sells the stock for $29,000. What is Clay's gain or loss?

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer is unmarried and is living with his girlfriend.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer is married, but her husband disappeared with a girlfriend while on vacation in March of the current year. The taxpayer has no dependents.

A taxpayer with self-employment income of $600 must file a tax return.

A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -After living together for 6 months, the couple married December 31.

What is the formula for computing taxable income, as summarized in the text?

During 2013, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

All taxpayers may use the tax rate schedule to determine their tax liability.

William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return?

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

Norman and Linda are married taxpayers with taxable income of $126,000 in 2014. a. When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter? b. What is their tax liability?

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file Form 1040A:

A dependent child with earned income in excess of the available standard deduction amount must file a tax return.

Internet users can sign on to http://www.irs.gov/ and:

Clay purchased Elm Corporation stock 20 years ago for $10,000. In 2014, he sells the stock for $29,000. What is Clay's gain or loss?

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer is unmarried and is living with his girlfriend.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer is married, but her husband disappeared with a girlfriend while on vacation in March of the current year. The taxpayer has no dependents.

A taxpayer with self-employment income of $600 must file a tax return.

A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -After living together for 6 months, the couple married December 31.

What is the formula for computing taxable income, as summarized in the text?

During 2013, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: ​ Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

All taxpayers may use the tax rate schedule to determine their tax liability.

William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return?

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

During 2013, Anita was entirely supported by her three sons, Dudley, Carlton, and Isidore, who provided support for her in the following percentages: Which of the children may be allowed to claim his mother as a dependent, assuming a multiple support agreement exists?