Question 1

If an individual with a marginal tax rate of 15% has a long-term capital gain,it is taxed at

Accepted Answer

A) 0%. 
B) 20%. 
C) 10%. 
D) 15%. 
A) 0%. 
B) 20%. 
C) 10%. 
D) 15%.

Question 2

Charlie is claimed as a dependent on his parents' tax return in 2017.He received $8,000 during the year from a part-time acting job,which was his only income.What is his standard deduction?

Accepted Answer

A) $1,050 
B) $6,350 
C) $8,000 
D) $8,350 
A) $1,050 
B) $6,350 
C) $8,000 
D) $8,350

Question 3

Generally,in the case of a divorced couple,the parent who has physical custody of a child for the greater part of the year is entitled to the dependency exemption.

Accepted Answer

A) True 
 B)False

Question 4

A taxpayer is able to change his filing status from married filing jointly to married filing separately by filing an amended return.

Accepted Answer

A) True 
 B)False

Question 5

A single taxpayer provided the following information for 2017:   What is taxable income?

Accepted Answer

A) $58,950 
B) $62,950 
C) $66,950 
D) $67,000 
A) $58,950 
B) $62,950 
C) $66,950 
D) $67,000

Question 6

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Accepted Answer

A) he or she and the decedent must have shared the same household as of date of death. 
B) he or she must be a U.S.citizen or resident. 
C) he or she must be qualified to file a joint return in the year of death. 
D) he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home. 
A) he or she and the decedent must have shared the same household as of date of death. 
B) he or she must be a U.S.citizen or resident. 
C) he or she must be qualified to file a joint return in the year of death. 
D) he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home.

Question 7

The oldest age at which the "Kiddie Tax" could apply to a dependent child is

Accepted Answer

A) 17. 
B) 18. 
C) 20. 
D) 23. 
A) 17. 
B) 18. 
C) 20. 
D) 23.

Question 8

A legally married same-sex couple can file a joint return.

Accepted Answer

A) True 
 B)False

Question 9

An individual may not qualify for the dependency exemption as a qualifying child but may still qualify as a dependent.

Accepted Answer

A) True 
 B)False

Question 10

Juanita's mother lives with her.Juanita purchased clothing for her mother costing $1,000 and provided her with a room that Juanita estimates she could have rented for $4,000.Juanita spent $5,000 on groceries she shared with her mother.Juanita also paid $700 for her mother's health insurance coverage.How much of these costs is considered support?

Accepted Answer

A) $5,000 
B) $8,200 
C) $10,000 
D) $10,700 
A) $5,000 
B) $8,200 
C) $10,000 
D) $10,700

Question 11

Taquin,age 67 and single,paid home mortgage interest of $4,000,charitable contributions of $2,000 and property taxes of $3,000 in 2017.He has no dependents.In addition to the personal exemption,Taquin will claim a deduction from AGI of

Accepted Answer

A) $7,900. 
B) $6,350. 
C) $10,550. 
D) $9,000. 
A) $7,900. 
B) $6,350. 
C) $10,550. 
D) $9,000.

Question 12

Steven and Susie Tyler have three dependent children ages 13,15,and 17.Their modified AGI is $108,000.What is the amount of the child credit to which they are entitled?

Accepted Answer

A) $0 
B) $1,000 
C) $2,000 
D) $3,000 
A) $0 
B) $1,000 
C) $2,000 
D) $3,000

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Sally divorced her husband three years ago and has not remarried.Since the divorce she has maintained her home in which she and her now sixteen-year-old daughter reside.The daughter is a qualified child.Sally signed the dependency exemption over to her ex-spouse by filing the appropriate IRS form.What is Sally's filing status for the current year and how many exemptions may she claim?

Accepted Answer

A) single and one 
B) surviving spouse and one 
C) head of household and one 
D) head of household and two 
A) single and one 
B) surviving spouse and one 
C) head of household and one 
D) head of household and two

Question 15

The following information for 2017 relates to Emma Grace,a single taxpayer,age 18:
   a.Compute Emma Grace's taxable income assuming she is self-supporting.
b.Compute Emma Grace's taxable income assuming she is a dependent of her parents.

Accepted Answer

The answer of The following information for 2017 relates to...

Question 16

A married couple need not live together to file a joint return.

Accepted Answer

A) True 
 B)False

Question 17

Discuss why Congress passed the innocent spouse provision and detail the requirements to be met in order to qualify as an innocent spouse and be relieved of liability for tax on unreported income.

Accepted Answer

The provision was passed because each sp

Question 18

Generally,itemized deductions are personal expenses specifically allowed by the tax law.

Accepted Answer

A) True 
 B)False

Question 19

Frank,age 17,received $4,000 of dividends and $1,500 from a part-time job.Frank is a dependent of his parents who are in the 28% percent bracket.Frank's 2017 taxable income is

Accepted Answer

A) $0. 
B) $4,000. 
C) $4,450. 
D) $3,650. 
A) $0. 
B) $4,000. 
C) $4,450. 
D) $3,650.

Question 20

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

Accepted Answer

A) gross income that is less than the personal exemption. 
B) adjusted gross income that is less than the personal exemption. 
C) no gross income. 
D) no taxable income. 
A) gross income that is less than the personal exemption. 
B) adjusted gross income that is less than the personal exemption. 
C) no gross income. 
D) no taxable income.

Exam 18: Determination of Tax

If an individual with a marginal tax rate of 15% has a long-term capital gain,it is taxed at

Charlie is claimed as a dependent on his parents' tax return in 2017.He received $8,000 during the year from a part-time acting job,which was his only income.What is his standard deduction?

Generally,in the case of a divorced couple,the parent who has physical custody of a child for the greater part of the year is entitled to the dependency exemption.

A taxpayer is able to change his filing status from married filing jointly to married filing separately by filing an amended return.

A single taxpayer provided the following information for 2017: What is taxable income?

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

The oldest age at which the "Kiddie Tax" could apply to a dependent child is

A legally married same-sex couple can file a joint return.

An individual may not qualify for the dependency exemption as a qualifying child but may still qualify as a dependent.

Taquin,age 67 and single,paid home mortgage interest of $4,000,charitable contributions of $2,000 and property taxes of $3,000 in 2017.He has no dependents.In addition to the personal exemption,Taquin will claim a deduction from AGI of

Steven and Susie Tyler have three dependent children ages 13,15,and 17.Their modified AGI is $108,000.What is the amount of the child credit to which they are entitled?

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

The following information for 2017 relates to Emma Grace,a single taxpayer,age 18: a.Compute Emma Grace's taxable income assuming she is self-supporting. b.Compute Emma Grace's taxable income assuming she is a dependent of her parents.

A married couple need not live together to file a joint return.

Discuss why Congress passed the innocent spouse provision and detail the requirements to be met in order to qualify as an innocent spouse and be relieved of liability for tax on unreported income.

Generally,itemized deductions are personal expenses specifically allowed by the tax law.

Frank,age 17,received $4,000 of dividends and $1,500 from a part-time job.Frank is a dependent of his parents who are in the 28% percent bracket.Frank's 2017 taxable income is

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

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