Exam 17: Determination of Tax

A widow or widower may file a joint tax return and claim an exemption for the deceased spouse in the year of the spouse's death as long as the surviving spouse does not remarry before the end of the year.

Rena and Ronald, a married couple, each earn a salary of $200,000. They will be required to pay additional payroll taxes in 2016 of

Assuming a calendar tax year and the conventional 15th of the month due date, all of the following business entities must file their 2016 tax returns by the March 15, 2017 except

In 2016, the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

Deborah, who is single, is claimed as a dependent on her parents' tax return. She had a part-time job during 2015 and earned $850 during the year, which was her only income. What is her standard deduction?

Carter dies on January 1, 2016. A joint return election is made in 2016 and Marjorie properly qualifies as a surviving spouse for the two following years. Marjorie has one child that she claims as a dependent for this same period. The number of personal and dependency exemptions allowed Marjorie in 2016 and in 2017, respectively:

Sean and Martha are both over age 65 and Martha is considered blind by tax law standards. Their total income in 2016 from part-time jobs and interest income from a bank savings account is $60,000. Their itemized deductions are $12,000. Required: Compute their taxable income.

You may choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return. Which of the following facts would prevent you from being considered married for filing purposes?

On June 1, 2016, Ellen turned 65. Ellen has been a widow for five years and has no dependents. Her standard deduction is

In 2016 Carol and Robert have salaries of $35,000 and $27,000, respectively. Their itemized deductions total $8,000. They are married, under 65, and live in a common law state. a. Compute their taxable income assuming that they file a joint return. b. Compute their taxable income assuming that they file separate returns and that Robert claims all of the itemized deductions.

Lila and Ted are married and have AGI of $337,000 in 2016. They had their first children this year, twins. Lila and Ted will be allowed a deduction for personal and dependency exemptions of

The regular standard deduction is available to which one of the following taxpayers?

Shane and Alyssa (a married couple) have AGI of $345,000 in 2016. They bought a house this year and paid $16,000 of interest expense on the mortgage and paid $6,500 of property taxes. They will be allowed a deduction from AGI of

A qualifying child of the taxpayer must meet the gross income test.

When two or more people qualify to claim the same person as a dependent, a taxpayer who is entitled to the exemption through the qualified child rules has priority over a taxpayer who meets the requirements for other relatives.

A single taxpayer provided the following information for 2016: Salary \ 80,000 Interest on local government bonds (qualifies as a tax exclusion) 4,000 Allowable itemized deductions 13,000 What is taxable income?

Vincent, age 12, is a dependent of his parents. During 2016, Vincent's earned income from wages is $2,600 and Vincent received $3,000 of interest income. The parent's marginal rate is 28% and Vincent's marginal rate is 10%. Vincent's tax is

Husband and wife, who live in a common law state, are eligible to file a joint return for 2016, but elect to file separately. They do not have dependents. Wife has adjusted gross income of $25,000 and has $2,200 of expenditures which qualify as itemized deductions. She is entitled to one exemption. Husband deducts itemized deductions of $11,200. What is the taxable income for the wife?

Generally, when a married couple files a joint return, each spouse is liable for one-half of the entire tax and any penalties incurred.

Edward, a widower whose wife died in 2013, maintains a household for himself and his 10-year-old daughter. Edward's most favorable filing status for 2016 is