Question 1

For AGI deductions are commonly referred to as deductions "below the line."

Accepted Answer

A) True 
 B)False

Question 2

Hannah, who is single, received a qualified dividend of $1,000.Hannah's marginal ordinary income tax rate is 32 percent.What amount of tax must she pay on the $1,000 dividend?

Accepted Answer

$150 ($1,0

Question 3

A taxpayer who is claimed as a dependent on another's tax return may not claim any dependents on his or her tax return.

Accepted Answer

A) True 
 B)False

Question 4

Jasmine and her husband, Arty, have been married for 25 years.In May of this year, the couple divorced.During the year, Jasmine provided all the support for herself and her 22-year-old child, Dexter, who lived in the same home as Jasmine for the entire year.Dexter is employed full time, earning $29,000 this year.What is Jasmine's most favorable filing status for the year?

Accepted Answer

A) Single. 
B) Married filing separately. 
C) Surviving spouse. 
D) Head of household. 
A) Single. 
B) Married filing separately. 
C) Surviving spouse. 
D) Head of household.

Question 5

When determining whether a child meets the qualifying child support test for the parents, scholarships earned by the child do not count as self-support provided by the child.

Accepted Answer

A) True 
 B)False

Question 6

Sullivan's wife, Susan, died four years ago.Sullivan has not remarried and he maintains a home for his dependent child, Sammy.In 2019, Sullivan received $70,000 of salary from his employer and $3,000 of qualified business income from a business investment, and he paid $10,000 of itemized deductions.What is Sullivan's taxable income for 2019?

Accepted Answer

Taxable in

Question 7

Taxpayers are allowed to deduct a specific amount for each of their dependents.

Accepted Answer

A) True 
 B)False

Question 8

In Year 1, the Bennetts' 25-year-old daughter, Jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends.In previous years, Jane has never worked and her parents have always been able to claim her as a dependent.In Year 1, a kind neighbor offers to pay for all of Jane's educational and living expenses.Which of the following statements is most accurate regarding whether Jane's parents would be allowed to claim Jane as a dependent for Year 1, assuming the neighbor pays for all of Jane's support?

Accepted Answer

A) No, Jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative. 
B) Yes, because she is a full-time student and does not provide more than half of her own support, Jane is considered her parent's qualifying child. 
C) No, Jane is too old to be considered a qualifying child and her parents fail the support test of a qualifying relative because they did not provide more than half her support. 
D) Yes, because she is a student, her absence is considered as "temporary." Consequently she meets the residence test and is considered a qualifying child of the Bennetts. 
A) No, Jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative. 
B) Yes, because she is a full-time student and does not provide more than half of her own support, Jane is considered her parent's qualifying child. 
C) No, Jane is too old to be considered a qualifying child and her parents fail the support test of a qualifying relative because they did not provide more than half her support. 
D) Yes, because she is a student, her absence is considered as "temporary." Consequently she meets the residence test and is considered a qualifying child of the Bennetts.

Question 9

The only from AGI deductions are the standard deduction and itemized deductions.

Accepted Answer

A) True 
 B)False

Question 10

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year, the taxpayer will qualify for head of household filing status.

Accepted Answer

A) True 
 B)False

Question 11

In June of Year 1, Jake's wife, Darla, died.The couple did not have any children and Jake did not remarry in Year 1 or Year 2.Which is the most favorable filing status for Jake in Year 2?

Accepted Answer

A) Married filing separately. 
B) Single. 
C) Head of household. 
D) Qualifying widower. 
A) Married filing separately. 
B) Single. 
C) Head of household. 
D) Qualifying widower.

Question 12

In April of Year 1, Martin left his wife, Marianne.While the couple was apart, they were not legally divorced.Marianne found herself having to financially provide for the couple's only child (who qualifies as Marianne's dependent)and to pay all the costs of maintaining the household.When Marianne filed her tax return for Year 1, she filed a return separate from Martin.What is Marianne's most favorable filing status for Year 1?

Accepted Answer

A) Married filing separately. 
B) Single. 
C) Head of household. 
D) Qualifying widow. 
A) Married filing separately. 
B) Single. 
C) Head of household. 
D) Qualifying widow.

Question 13

Madison's gross tax liability is $9,000.Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer.What are Madison's taxes due (or taxes refunded)with her tax return?

Accepted Answer

A) $0 taxes due and $0 tax refund. 
B) $6,000 taxes due. 
C) $2,000 tax refund. 
D) $1,000 taxes due. 
A) $0 taxes due and $0 tax refund. 
B) $6,000 taxes due. 
C) $2,000 tax refund. 
D) $1,000 taxes due.

Question 14

If an unmarried taxpayer is eligible to claim another as a dependent, the taxpayer is automatically eligible for the head of household filing status.

Accepted Answer

A) True 
 B)False

Question 15

Doug and Lisa have determined that their tax liability on their joint return is $3,700.They have made prepayments of $1,000 and also are entitled to a $2,000 child tax credit.What is the amount of their tax refund or taxes due?

Accepted Answer

$700 taxes due ($3,7

Question 16

Greg is single.During 2019, he received $60,000 of salary from his employer.That was his only source of income.He reported $3,000 of for AGI deductions and $9,000 of itemized deductions.The 2019 standard deduction amount for a single taxpayer is $12,200.What is Greg's taxable income?

Accepted Answer

$44,800, c

Question 17

Mason and his wife, Madison, have been married for five years.Jaxon, who is 18 years old and unrelated to Mason and Madison, has been living with Mason and Madison for the last two years.In May of Year 1, Mason and Madison divorced.Mason and Jaxon stayed in the home and Madison moved out.During Year 2, Mason provided all of Jaxon's support, and Jaxon lived in the home for all of Year 2.Jaxon did not earn any income during Year 2.What is Mason's most favorable filing status for Year 2?

Accepted Answer

A) Single. 
B) Married filing separately. 
C) Surviving spouse. 
D) Head of household. 
A) Single. 
B) Married filing separately. 
C) Surviving spouse. 
D) Head of household.

Question 18

Which of the following statements regarding dependents is false?

Accepted Answer

A) A taxpayer may be allowed to claim another as a dependent even if the taxpayer has no family relationship with the other person. 
B) To qualify as a dependent of another, an individual must be a resident of the United States. 
C) An individual who qualifies as a dependent of another taxpayer may not claim any dependents. 
D) An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds a certain amount. 
A) A taxpayer may be allowed to claim another as a dependent even if the taxpayer has no family relationship with the other person. 
B) To qualify as a dependent of another, an individual must be a resident of the United States. 
C) An individual who qualifies as a dependent of another taxpayer may not claim any dependents. 
D) An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds a certain amount.

Question 19

Filing status determines all of the following except ________.

Accepted Answer

A) the applicable standard deduction amount 
B) the appropriate tax rate schedule or tax table 
C) the top-stated marginal rate in the tax rate schedule 
D) the AGI threshold for reductions in certain tax benefits 
A) the applicable standard deduction amount 
B) the appropriate tax rate schedule or tax table 
C) the top-stated marginal rate in the tax rate schedule 
D) the AGI threshold for reductions in certain tax benefits

Question 20

A personal automobile is a capital asset.

Accepted Answer

A) True 
 B)False

For AGI deductions are commonly referred to as deductions "below the line."

Hannah, who is single, received a qualified dividend of $1,000.Hannah's marginal ordinary income tax rate is 32 percent.What amount of tax must she pay on the $1,000 dividend?

A taxpayer who is claimed as a dependent on another's tax return may not claim any dependents on his or her tax return.

When determining whether a child meets the qualifying child support test for the parents, scholarships earned by the child do not count as self-support provided by the child.

Taxpayers are allowed to deduct a specific amount for each of their dependents.

The only from AGI deductions are the standard deduction and itemized deductions.

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year, the taxpayer will qualify for head of household filing status.

In June of Year 1, Jake's wife, Darla, died.The couple did not have any children and Jake did not remarry in Year 1 or Year 2.Which is the most favorable filing status for Jake in Year 2?

Madison's gross tax liability is $9,000.Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer.What are Madison's taxes due (or taxes refunded)with her tax return?

If an unmarried taxpayer is eligible to claim another as a dependent, the taxpayer is automatically eligible for the head of household filing status.

Doug and Lisa have determined that their tax liability on their joint return is $3,700.They have made prepayments of $1,000 and also are entitled to a $2,000 child tax credit.What is the amount of their tax refund or taxes due?

Greg is single.During 2019, he received $60,000 of salary from his employer.That was his only source of income.He reported $3,000 of for AGI deductions and $9,000 of itemized deductions.The 2019 standard deduction amount for a single taxpayer is $12,200.What is Greg's taxable income?

Which of the following statements regarding dependents is false?

Filing status determines all of the following except ________.

A personal automobile is a capital asset.

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Filters

Exam 4: Individual Income Tax Overview, Dependents, and Filing Status

For AGI deductions are commonly referred to as deductions "below the line."

Hannah, who is single, received a qualified dividend of $1,000.Hannah's marginal ordinary income tax rate is 32 percent.What amount of tax must she pay on the $1,000 dividend?

A taxpayer who is claimed as a dependent on another's tax return may not claim any dependents on his or her tax return.

When determining whether a child meets the qualifying child support test for the parents, scholarships earned by the child do not count as self-support provided by the child.

Taxpayers are allowed to deduct a specific amount for each of their dependents.

The only from AGI deductions are the standard deduction and itemized deductions.

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year, the taxpayer will qualify for head of household filing status.

In June of Year 1, Jake's wife, Darla, died.The couple did not have any children and Jake did not remarry in Year 1 or Year 2.Which is the most favorable filing status for Jake in Year 2?

Madison's gross tax liability is $9,000.Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer.What are Madison's taxes due (or taxes refunded)with her tax return?

If an unmarried taxpayer is eligible to claim another as a dependent, the taxpayer is automatically eligible for the head of household filing status.

Doug and Lisa have determined that their tax liability on their joint return is $3,700.They have made prepayments of $1,000 and also are entitled to a $2,000 child tax credit.What is the amount of their tax refund or taxes due?

Greg is single.During 2019, he received $60,000 of salary from his employer.That was his only source of income.He reported $3,000 of for AGI deductions and $9,000 of itemized deductions.The 2019 standard deduction amount for a single taxpayer is $12,200.What is Greg's taxable income?

Which of the following statements regarding dependents is false?

Filing status determines all of the following except ________.

A personal automobile is a capital asset.

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Filters