Exam 4: Personal and Dependency Exemptions; Filing Status; Determination of Tax for an Individual; Filing Requirements

V is 11 years of age, her only income is interest from savings of $3,200, and she has no itemized deductions.V is claimed as a dependent by her parents.V's taxable income is $2,250 for 2012, $1,300 of which is taxed at her parents' marginal tax rate.

Which one of the following items when spent is not included in support?

H and W are married and have a 15-year-old daughter who lives with them the entire taxable year.The couple's marginal tax rate for federal tax purposes is 35 percent.What amount will their daughter save them in taxes?

A taxpayer may not claim an exemption for any child who filed a joint return with her spouse.

A person whose spouse died in 20X1 may qualify as a surviving spouse only in 20X1 and 20X2, if all other requirements are met.

A single taxpayer whose only income is from a sole proprietorship with gross income of $8,700 and net income of $3,800 is not required to file a tax return for 2012.

Information from the following table will be useful for answering this question.All figures are for 2012. Personal, dependency exemption: \ 3,700 Filing Status Basic Standard Deduction Additional Standard Deduction* Married, filing jointly \ 11,900 \ 1,150 Married, filing separately 5,900 1,150 Head of household 8,700 1,450 Single 5,950 1,450 *Blind taxpayer, taxpayer 65 or older Which one of the following taxpayers is not required to file a tax return for 2012?

A 35 percent tax is assessed on income in excess of specified levels.Which of the following is not true of the 35 percent bracket?

A penalty is assessed against individuals for failure to make adequate estimated tax payments.Which of the following is not true of that penalty?

An extension of time to file a return for an individual taxpayer for up to six months is automatic (i.e., no explanation is required so long as the proper form is filed before the due date).

A $2,000 non-refundable tax credit for two taxpayers with the same filing status results in

The general rule for children of divorced or separated parents who together provide over one-half the support and together have custody more than one-half the year is that the exemption goes to the parent providing the greater amount of support.

Which of the following statements about the child tax credit is true?

A taxpayer with adjusted gross income in excess of a certain amount can lose the entire exemption deduction.

To qualify as an abandoned spouse, a taxpayer must claim at least one dependency exemption.

G and J are married and have three children: R, S, and C.R, age 19, was the star of the men's volleyball team at State University, where he was a full-time student in the current year.He received a scholarship valued at $8,000.G and J provide his other support of $5,000.S, who was a full-time high school student all year, worked part-time, earning $3,700.G and J spent $4,000 toward S's support.C was a high school freshman and had no income during the year.How many exemptions may G and J claim on their joint tax return?

Chris, a single taxpayer, has investment income in addition to his salary.Use the information below to answer the following question concerning Chris' estimated tax payments during 20X1.Assume that all forms of income, withholding, and deductions occur at a constant rate throughout the year. Salary $\quad$$\quad \$ 39,000$ Federal income tax withheld $\quad$ $\$ 3,200$ Interest income $\quad$$\quad$ 14,150 If Chris pays quarterly installments of $300 on or before the due dates (his 20X0 tax liability was $7,200), and he pays the remaining tax liability on April 15, 20X2, calculate the penalty for underestimation of tax that Chris will owe to the nearest dollar.Assume a penalty interest rate of 10 percent, and installment due dates 365, 304,212, and 90 days prior to April 15.

Which of the following taxpayers is not required to use the tax tables?

A person who is claimed as a dependent on another person's return claims a personal exemption of zero on his or her own return.

In determining the amount spent for support of a potential dependent, amounts spent on entertainment and vacations are included.