Exam 1: The Individual Income Tax Return

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The unmarried taxpayer supports his dependent mother, who lives next door in a separate apartment.

Brian is 60 years old, single and legally blind. Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father's residence. What is the total standard deduction amount that Brian should claim on his 2014 tax return?

Which of the following is not a capital asset?

The 3.8 percent ACA Medicare surtax does not apply to:

Determine from the tax table or the tax rate schedule, whichever is appropriate, the amount of the income tax for each of the following taxpayers for 2014.

Hansel and Gretel are married taxpayers who file a joint income tax return for 2014. They have no dependents. On their 2014 income tax return, they have adjusted gross income of $62,000 and total itemized deductions of $4,000. What is their taxable income?

Mark a "Yes" to each of the following that can be found on the IRS website. If not, mark with a "No." a. A list of IRS forms. b. A search function. c. Advice on how to avoid paying taxes. d. Ways to contact the IRS.

Robert is a single taxpayer who has AGI of $145,000 in 2014; his taxable income is $122,000. What is his federal tax liability for 2014?

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

List each alternative filing status available to unmarried individual taxpayers.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer's husband died last year. Her 13 year-old dependent daughter lives with her.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -Which of the following is not a goal of the tax law? a.​Ensuring that all persons pay the same amount of tax. b.​Economic goals such as reduction in unemployment. c.​Social goals such as lowering the cost of adoption. d.​Raise adequate revenue to operate the government.

Kenzie is a research scientist in Tallahassee, Florida. Her husband Gary stays home to take care of their two young children. Kenzie's total wages for 2014 were $60,500 from which $5,900 of federal income tax was withheld. ​ Calculate the income tax due or income tax refund on Kenzie and Gary's 2014 individual income tax return. Use the tax formula for individuals and show your work.

John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,000 of wages from a part-time job at the college book store. What is Ann's filing status for 2014?

Theodore, age 74, and Maureen, age 59, are married taxpayers with two dependents. Their adjusted gross income for the 2014 tax year is $43,600, and they have itemized deductions of $7,800. Determine the following for Theodore and Maureen's 2014 income tax return: a.The number of exemptions b.The greater of the amount of their standard deduction or their itemized deductions c.Their taxable income

Jessica, a 17-year-old guitarist in a successful band, earns $100,000 a year and is completely self-supporting although she lives with her parents. Can her parents claim her as a dependent? Why or why not?

Partnership income is reported on:

Mr. and Mrs. Vonce, both age 62, file a joint return for 2014. They provided all the support for their daughter who is 19 years old, legally blind, and who earns no income. Their son, age 21 and a full-time student at a university, had $4,200 of income and provided 70 percent of his own support during 2014. How many exemptions may Mr. and Mrs. Vonce claim on their 2014 tax return?

Rod, age 50, and Ann, age 49, are married taxpayers who file a joint return for 2014. They have gross income of $150,700. Their deductions for adjusted gross income are $5,200 and they have itemized deductions of $12,000, consisting of $7,000 in state income taxes and $5,000 in mortgage interest expense. If they 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

What is the difference between the standard deduction and itemized deductions?