Question 1

As opposed to itemizing deductions from AGI, the majority of individual taxpayers choose the standard deduction.

Accepted Answer

A) True 
 B)False

Question 2

Harpreet, whose husband died in December 2018, maintains a household in which her dependent mother lives. Which (if any) of the following is her filing status for the tax year 2019? (Note: Harpreet is the executor of her husband's estate.)

Accepted Answer

A) Single 
B) Married, filing separately 
C) Surviving spouse 
D) Head of household 
E) Married, filing jointly 
A) Single 
B) Married, filing separately 
C) Surviving spouse 
D) Head of household 
E) Married, filing jointly

Question 3

Which the following, if any, of is a correct statement relating to the kiddie tax in 2019?

Accepted Answer

A) If the parents are divorced, the income of the noncustodial parent is used to determine the allocable parental tax. 
B) The components for the application of the kiddie tax are not subject to adjustment for inflation. 
C) If the kiddie tax applies, the parents must include the income of the child on their own income tax return. 
D) The kiddie tax does not apply if both parents of the child are deceased. 
E) None of these. 
A) If the parents are divorced, the income of the noncustodial parent is used to determine the allocable parental tax. 
B) The components for the application of the kiddie tax are not subject to adjustment for inflation. 
C) If the kiddie tax applies, the parents must include the income of the child on their own income tax return. 
D) The kiddie tax does not apply if both parents of the child are deceased. 
E) None of these.

Question 4

Match the statements that relate to each other.Note: Some choices may be used more than once.
-$1,100

Accepted Answer

A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided. 
A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided.

Question 5

In which of the following situations, if any, may the individual not be claimed as a dependent of the taxpayer?

Accepted Answer

A) A former spouse who lives with the taxpayer (divorce took place last year). 
B) A stepmother who does not live with the taxpayer. 
C) A married daughter who lives with the taxpayer. 
D) A half-brother who does not live with the taxpayer and is a citizen and resident of Honduras. 
E) A cousin who lives with the taxpayer. 
A) A former spouse who lives with the taxpayer (divorce took place last year). 
B) A stepmother who does not live with the taxpayer. 
C) A married daughter who lives with the taxpayer. 
D) A half-brother who does not live with the taxpayer and is a citizen and resident of Honduras. 
E) A cousin who lives with the taxpayer.

Question 6

When the kiddie tax applies, the child need not file an income tax return because his or her income will be reported on the parents' return.

Accepted Answer

A) True 
 B)False

Question 7

During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss.Presuming adequate income, how much of these losses may Kim claim?

Accepted Answer

A) $0. 
B) $1,000. 
C) $2,000. 
D) $3,000. 
E) None of these. 
A) $0. 
B) $1,000. 
C) $2,000. 
D) $3,000. 
E) None of these.

Question 8

Which of the following statements relating to the standard deduction, if any, is correct?

Accepted Answer

A) If a taxpayer dies during the year, his or her standard deduction must be prorated. 
B) If a taxpayer is claimed as a dependent of another, his or her additional standard deduction is allowed in full (i.e., no adjustment is necessary). 
C) If spouses file separate returns, both must claim the standard deduction (rather than itemize their deductions from AGI). 
D) If a taxpayer is claimed as a dependent of another, no basic standard deduction is allowed. 
E) None of these. 
A) If a taxpayer dies during the year, his or her standard deduction must be prorated. 
B) If a taxpayer is claimed as a dependent of another, his or her additional standard deduction is allowed in full (i.e., no adjustment is necessary). 
C) If spouses file separate returns, both must claim the standard deduction (rather than itemize their deductions from AGI). 
D) If a taxpayer is claimed as a dependent of another, no basic standard deduction is allowed. 
E) None of these.

Question 9

Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI
and itemized deductions.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following, if any, is a deduction for AGI?

Accepted Answer

A) Contributions to a traditional Individual Retirement Account. 
B) Child support payments. 
C) Funeral expenses. 
D) Loss on the sale of a personal residence. 
E) Medical expenses. 
A) Contributions to a traditional Individual Retirement Account. 
B) Child support payments. 
C) Funeral expenses. 
D) Loss on the sale of a personal residence. 
E) Medical expenses.

Question 11

Benjamin, age 16, is claimed as a dependent by his parents.During 2019, he earned $850 at a car wash.Benjamin's standard deduction is $1,450 ($1,100 + $350).

Accepted Answer

A) True 
 B)False

Question 12

Stuart has a short-term capital loss, a collectible long-term capital gain, and a long-term capital gain from land held as investment.The short-term loss is first applied to the collectible capital gain.

Accepted Answer

A) True 
 B)False

Question 13

Kyle and Liza are married and under 65 years of age.During 2019, they furnish more than half of the support of their 19-year old daughter, Kendra, who lives with them.She graduated from high school in May 2018.Kendra earns $15,000 from a part-time job, most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father, who died on January 3, 2019, at age 90, has for many years qualified as their dependent.How many dependents can Kyle and Liza claim?

Accepted Answer

A) None 
B) One 
C) Two 
D) Three 
A) None 
B) One 
C) Two 
D) Three

Question 14

Matching 
Regarding classification as a dependent, classify each statement in one of the four categories:
-An ex-husband (divorce occurred last year) who lives with taxpayer.

Accepted Answer

A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative. 
A) Could be a qualifying child. 
B) Could be a qualifying relative. 
C) Could be either a qualifying child or a qualifying relative. 
D) Could be neither a qualifying child nor a qualifying relative.

Question 15

Ellen, age 12, lives in the same household with her father, grandfather, and uncle.The cost of maintaining the household is provided by her grandfather (40%) and her uncle (60%).Disregarding tie-breaker rules, Ellen is a qualifying child as to:

Accepted Answer

A) Only her father. 
B) Only her grandfather and uncle. 
C) Only her uncle. 
D) All parties involved (i.e., father, grandfather, and uncle). 
E) None of these. 
A) Only her father. 
B) Only her grandfather and uncle. 
C) Only her uncle. 
D) All parties involved (i.e., father, grandfather, and uncle). 
E) None of these.

Question 16

Because they appear on Schedule 1 of Form 1040, itemized deductions are also referred to as "Schedule 1 deductions."

Accepted Answer

A) True 
 B)False

Question 17

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Multiple support agreement

Accepted Answer

A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided. 
A) Not available to 65-year old taxpayer who itemizes. 
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes). 
C) Largest basic standard deduction available to a dependent who has no earned income in 2019. 
D) Considered for dependency purposes. 
E) Qualifies for head of household filing status.
F)A child (age 15) who is a dependent and has only earned income.
G)Considered in applying gross income test (for dependency exemption purposes).
H)Not considered in applying the gross income test (for dependency exemption purposes).
I)Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J)Exception to the support test (for dependency exemption purposes).
K)A child (age 16) who is a dependent and has only unearned income of $4,500.
L)No correct match provided.

Question 18

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI, Donna cannot claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 19

Match the statements that relate to each other.Note: Choice k.may be used more than once.
-Nonresident alien

Accepted Answer

A) Available to a 70-year-old father claimed as a dependent by his son. 
B) Equal to tax liability divided by taxable income. 
C) The highest income tax rate applicable to a taxpayer. 
D) Not eligible for the standard deduction. 
E) No one qualified taxpayer meets the support test.
F)Taxpayer's ex-husband does not qualify.
G)A dependent child (age 18) who has only unearned income.
H)Highest applicable rate is 37%.
I)Applicable rate could be as low as 0%.
J)Maximum rate is 28%.
K)No correct match provided. 
A) Available to a 70-year-old father claimed as a dependent by his son. 
B) Equal to tax liability divided by taxable income. 
C) The highest income tax rate applicable to a taxpayer. 
D) Not eligible for the standard deduction. 
E) No one qualified taxpayer meets the support test.
F)Taxpayer's ex-husband does not qualify.
G)A dependent child (age 18) who has only unearned income.
H)Highest applicable rate is 37%.
I)Applicable rate could be as low as 0%.
J)Maximum rate is 28%.
K)No correct match provided.

Question 20

In 2019, Ed is 66 and single.If he has itemized deductions of $12,700, he should not claim the standard deduction alternative.

Accepted Answer

A) True 
 B)False

As opposed to itemizing deductions from AGI, the majority of individual taxpayers choose the standard deduction.

Harpreet, whose husband died in December 2018, maintains a household in which her dependent mother lives. Which (if any) of the following is her filing status for the tax year 2019? (Note: Harpreet is the executor of her husband's estate.)

Which the following, if any, of is a correct statement relating to the kiddie tax in 2019?

Match the statements that relate to each other.Note: Some choices may be used more than once. -$1,100

In which of the following situations, if any, may the individual not be claimed as a dependent of the taxpayer?

When the kiddie tax applies, the child need not file an income tax return because his or her income will be reported on the parents' return.

During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss.Presuming adequate income, how much of these losses may Kim claim?

Which of the following statements relating to the standard deduction, if any, is correct?

Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions.

Which of the following, if any, is a deduction for AGI?

Benjamin, age 16, is claimed as a dependent by his parents.During 2019, he earned $850 at a car wash.Benjamin's standard deduction is $1,450 ($1,100 + $350).

Stuart has a short-term capital loss, a collectible long-term capital gain, and a long-term capital gain from land held as investment.The short-term loss is first applied to the collectible capital gain.

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -An ex-husband (divorce occurred last year) who lives with taxpayer.

Ellen, age 12, lives in the same household with her father, grandfather, and uncle.The cost of maintaining the household is provided by her grandfather (40%) and her uncle (60%).Disregarding tie-breaker rules, Ellen is a qualifying child as to:

Because they appear on Schedule 1 of Form 1040, itemized deductions are also referred to as "Schedule 1 deductions."

Match the statements that relate to each other.Note: Some choices may be used more than once. -Multiple support agreement

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI, Donna cannot claim the standard deduction.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Nonresident alien

In 2019, Ed is 66 and single.If he has itemized deductions of $12,700, he should not claim the standard deduction alternative.

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basic Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

Exam 3: Tax Formula and Tax Determination an Overview of Property Transactions

As opposed to itemizing deductions from AGI, the majority of individual taxpayers choose the standard deduction.

Harpreet, whose husband died in December 2018, maintains a household in which her dependent mother lives. Which (if any) of the following is her filing status for the tax year 2019? (Note: Harpreet is the executor of her husband's estate.)

Which the following, if any, of is a correct statement relating to the kiddie tax in 2019?

Match the statements that relate to each other.Note: Some choices may be used more than once. -$1,100

In which of the following situations, if any, may the individual not be claimed as a dependent of the taxpayer?

When the kiddie tax applies, the child need not file an income tax return because his or her income will be reported on the parents' return.

During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss.Presuming adequate income, how much of these losses may Kim claim?

Which of the following statements relating to the standard deduction, if any, is correct?

Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions.

Which of the following, if any, is a deduction for AGI?

Benjamin, age 16, is claimed as a dependent by his parents.During 2019, he earned $850 at a car wash.Benjamin's standard deduction is $1,450 ($1,100 + $350).

Stuart has a short-term capital loss, a collectible long-term capital gain, and a long-term capital gain from land held as investment.The short-term loss is first applied to the collectible capital gain.

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -An ex-husband (divorce occurred last year) who lives with taxpayer.

Ellen, age 12, lives in the same household with her father, grandfather, and uncle.The cost of maintaining the household is provided by her grandfather (40%) and her uncle (60%).Disregarding tie-breaker rules, Ellen is a qualifying child as to:

Because they appear on Schedule 1 of Form 1040, itemized deductions are also referred to as "Schedule 1 deductions."

Match the statements that relate to each other.Note: Some choices may be used more than once. -Multiple support agreement

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI, Donna cannot claim the standard deduction.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Nonresident alien

In 2019, Ed is 66 and single.If he has itemized deductions of $12,700, he should not claim the standard deduction alternative.

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basic Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters