Exam 1: The Individual Income Tax Return

Eugene and Velma are married.For 2017,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 so he is going to itemize.Velma's itemized deductions are $4,000.Assuming Eugene and Velma do not live in a community property state,what is Velma's taxable income?

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

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

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 $4,200 of wages from a part-time job at the college book store.What is Ann's filing status for 2017?

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

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

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

Nathan is 24 years old,single,and works as an accountant in a salmon cannery in Alaska.His total wages for 2017 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 2017 individual income tax return.Use the tax formula for individuals and show your work.

Roger,age 39,and Lucy,age 37,are married taxpayers who file a joint income tax return for 2017.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 2017,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

A married person with a dependent child may choose to file as head of household if it reduces his or her tax liability.

Mark each of the following as a taxable entity,a reporting entity,or both: a.Individuals b.Corporations c.Partnerships

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

Irma,widowed in 2016,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 2017?

The 0.9 percent ACA Medicare tax applies to:

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

The IRS:

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.

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

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 2017?

The U.S.federal tax law's sole purpose is to raise revenue.