Question 1

Tax credits reduce taxable income dollar for dollar.

Accepted Answer

A) True 
 B)False

Question 2

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 3

By the end of Year 1, Harold and Jamie Allred had been married for 30 years and have filed a joint return every year of their marriage. Their three sons, Jacob, Larry, and Andi, are ages 13, 16, and 23, respectively, and all live at home and are fully supported by their parents. Andi is employed full time, earning $17,000 in Year 1. Whom can the Allreds claim as dependents?

Accepted Answer

The Allreds may claim Jacob and Larry as

Question 4

Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

Accepted Answer

A) True 
 B)False

Question 5

Sheri and Jake Woodhouse have one daughter, Emma, who is 16 years old. They also have taken in Emma's friend, Harriet, who has lived with them since February of the current year and is also 16 years of age. The Woodhouses have not legally adopted Harriet but Emma often refers to Harriet as her "sister." The Woodhouses provide all of the support for both girls, and both girls live at the Woodhouse residence. Which of the following statements is true regarding whom Sheri and Jake may claim as dependents for the current year?

Accepted Answer

A) They may claim Emma as a dependent qualifying child but may not claim Harriet as a dependent. 
B) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying child. 
C) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying relative. 
D) None of these statements are true. 
A) They may claim Emma as a dependent qualifying child but may not claim Harriet as a dependent. 
B) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying child. 
C) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying relative. 
D) None of these statements are true.

Question 6

Which of the following series of inequalities is generally most accurate?

Accepted Answer

A) Gross income ≥ adjusted gross income ≥ taxable income 
B) Adjusted gross income ≥ gross income ≥ taxable income 
C) Adjusted gross income ≥ taxable income ≥ gross income 
D) Gross income ≥ taxable income ≥ adjusted gross income 
A) Gross income ≥ adjusted gross income ≥ taxable income 
B) Adjusted gross income ≥ gross income ≥ taxable income 
C) Adjusted gross income ≥ taxable income ≥ gross income 
D) Gross income ≥ taxable income ≥ adjusted gross income

Question 7

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Accepted Answer

A) True 
 B)False

Question 8

Joanna received $73,200 compensation from her employer, the value of her stock in ABC company appreciated by $11,000 during the year (but she did not sell any of the stock), and she received $40,200 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

Accepted Answer

A) $73,200. 
B) $84,200. 
C) $124,400. 
D) $113,400. 
A) $73,200. 
B) $84,200. 
C) $124,400. 
D) $113,400.

Question 9

All of the following are tests for determining qualifying child status except the _____.

Accepted Answer

A) gross income test 
B) age test 
C) support test 
D) residence test 
A) gross income test 
B) age test 
C) support test 
D) residence test

Question 10

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

Accepted Answer

A) True 
 B)False

Tax credits reduce taxable income dollar for dollar.

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

Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

Which of the following series of inequalities is generally most accurate?

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

All of the following are tests for determining qualifying child status except the _____.

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

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

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

Tax credits reduce taxable income dollar for dollar.

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

Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

Which of the following series of inequalities is generally most accurate?

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

All of the following are tests for determining qualifying child status except the _____.

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

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters