Question 1

If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew,who is not her dependent,she may use the head of household filing status.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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.

Accepted Answer

A) Single 
B) Married filing a joint return 
C) Married filing separate returns 
D) Head of household 
E) Qualifying widow(er)
F)Married filing joint or married filing separate

Question 4

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment.
a.Can she claim him as a dependent?
b.Can she claim head of household filing status? Why or why not?

Accepted Answer

The answer of Jeri is single and supports her 45...

Question 5

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.

Accepted Answer

A) Single 
B) Married filing a joint return 
C) Married filing separate returns 
D) Head of household 
E) Qualifying widow(er)
F)Married filing joint or married filing separate

Question 6

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

Accepted Answer

A) Salary income. 
B) Joint return status. 
C) Withholding on wages. 
D) Self-employment income.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Hansel and Gretel are married taxpayers who file a joint income tax return for 2017.They have no dependents.On their 2017 income tax return,they have adjusted gross income of $62,000 and total itemized deductions of $4,000.What is their taxable income?

Accepted Answer

The answer of Hansel and Gretel are married taxpayers who...

Question 9

Which of the following taxpayers does not have to file a tax return for 2017?

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.

Question 10

During 2017,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 2017,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

Question 11

Which of the following is not a capital asset?

Accepted Answer

A) Inventory 
B) Stocks 
C) A personal automobile 
D) Gold 
E) Land

Question 12

Which of the following is correct?

Accepted Answer

A) An individual is a reporting entity but not a taxable entity. 
B) A partnership is a taxable entity and a reporting entity. 
C) A corporation is a reporting entity but not a taxable entity. 
D) A partnership is a reporting entity but not a taxable entity.

Question 13

Taxpayers who are blind get the benefit of:

Accepted Answer

A) An extra exemption. 
B) An additional amount added to their standard deduction. 
C) Two standard deductions. 
D) None of the above.

Question 14

Partnerships:

Accepted Answer

A) Are not taxable entities. 
B) Are taxed in the same manner as individuals. 
C) File tax returns on Form 1120. 
D) File tax returns on Form 1041.

Question 15

Albert and Louise,ages 66 and 64,respectively,filed a joint return for 2017.They provided all of the support for their blind 19 year-old son,who had no gross income.They also provided the total support of Louise's father,who is a citizen and life-long resident of Peru.How many exemptions may they claim on their 2017 tax return?

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 5 
E) None of the above

Question 16

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 and the taxpayer did not agree to give the other parent the right to claim the child as a dependent.

Accepted Answer

A) True 
 B)False

Question 17

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 18

George,age 67,and Linda,age 60,are married taxpayers with three dependent children.Their adjusted gross income for the 2017 tax year is $142,000.They have itemized deductions of $24,000.Determine the following for their joint tax return for 2017:
a.The number of exemptions
b.Exemption deduction amount
c.The greater of the amount of their standard deduction or their itemized deductions
d.Taxable income

Accepted Answer

The answer of George,age 67,and Linda,age 60,are married taxpayers with...

Question 19

Which of the following is not considered one of the five basic taxable or reporting entities?​

Accepted Answer

A) ​Partnership 
B) ​Corporation 
C) Portfolio 
D) ​Individual 
E) ​Trust

Question 20

Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year.She has no other capital gains or losses for the year.Her taxable income without this transaction is $60,000.What is her current year taxable income considering this capital loss?

Accepted Answer

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

Exam 1: The Individual Income Tax Return

If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew,who is not her dependent,she may use the head of household filing status.

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

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.

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment. a.Can she claim him as a dependent? b.Can she claim head of household filing status? Why or why not?

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.

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

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

Hansel and Gretel are married taxpayers who file a joint income tax return for 2017.They have no dependents.On their 2017 income tax return,they have adjusted gross income of $62,000 and total itemized deductions of $4,000.What is their taxable income?

Which of the following taxpayers does not have to file a tax return for 2017?

During 2017,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 2017,and how many exemptions should he claim on his tax return?

Which of the following is not a capital asset?

Which of the following is correct?

Taxpayers who are blind get the benefit of:

Partnerships:

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 and the taxpayer did not agree to give the other parent the right to claim the child as a dependent.

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

Which of the following is not considered one of the five basic taxable or reporting entities?​

Alexis has a long-term capital loss of $13,000 on the sale of stock in the current year.She has no other capital gains or losses for the year.Her taxable income without this transaction is $60,000.What is her current year taxable income considering this capital loss?

Which of the following is not considered one of the five basic taxable or reporting entities?