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

Match the statements that relate to each other. Note: Choice l. may be used more than once. 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 39.6%. i.Applicable rate could be as low as 0%. j.Maximum rate is 28%. k.Income from foreign sources is not subject to tax. l.No correct match provided. -Marginal income tax rate

In 2016,Ed is 66 and single.If he has itemized deductions of $7,400,he should not claim the standard deduction alternative.

When married persons file a joint return,joint and several liability results.What does this mean?

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:

Heloise,age 74 and a widow,is claimed as a dependent by her daughter.For 2016,she had income as follows: $2,500 interest on municipal bonds;$3,200 Social Security benefits;$3,000 income from a part-time job;and $2,800 dividends on stock investments.What is Heloise's taxable income for 2016?

Katrina,age 16,is claimed as a dependent by her parents.During 2016,she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,950 ($5,600 earned income + $350).

Lucas,age 17 and single,earns $6,000 during 2016.Lucas's parents cannot claim him as a dependent if he does not live with them.