Exam 4: I: Determination of Tax

Edward,a widower whose wife died in 2011,maintains a household for himself and his daughter who qualifies as his dependent.Edward's most favorable filing status for 2014 is

For 2014,unearned income in excess of $2,000 of a child under age 18 is generally taxed at the parents' rate.

Kate is single and a homeowner.In 2014,she has property taxes on her home of $3,000,makes charitable contributions of $2,000,and pays home mortgage interest of $7,000.Kate's adjusted gross income for 2014 is $77,000. Required: Compute her taxable income for 2014.

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

Dave,age 59 and divorced,is the sole support of his mother age 83,who is a resident of a local nursing home for the entire year.Dave's mother had no income for the year.Dave's filing status and exemptions claimed are

A building used in a business is sold after five years of use for a gain.The gain will be treated as a long-term capital gain.

All of the following items are deductions for (not from)adjusted gross income except

Which of the following credits is considered a refundable credit?

Generally,when a married couple files a joint return,each spouse is liable for one-half of the entire tax and any penalties incurred.

Annisa,who is 28 and single,has adjusted gross income of $55,000 and itemized deductions of $5,000.In 2014,Annisa will have taxable income of

All of the following items are included in gross income except

Husband and wife,who live in a common law state,are eligible to file a joint return for 2014,but elect to file separately.They do not have dependents.Wife has adjusted gross income of $25,000 and has $2,200 of expenditures which qualify as itemized deductions.She is entitled to one exemption.Husband deducts itemized deductions of $11,200.What is the taxable income for the wife?

Lester,a widower qualifying as a surviving spouse,has $209,000 of salary,five personal and dependency exemptions and itemizes deductions.Lester must use which form to report his taxable income?

Gina Lewis,age 12,is claimed as a dependent on her parent's return.She is their only child. During 2014,she earned $2,300 from a summer job.She also earned interest of $2,750.Her parents' marginal tax rate is 28 percent. Required: a.Compute the amount of Gina's tax liability for 2014. b.Can Gina's parents take a child tax credit for her?

Michelle,age 20,is a full-time college student with earned income from wages of $5,200 and interest income of $700.Michelle's parents provide more than half of Michelle's support.Michelle's taxable income is

Deborah,who is single,is claimed as a dependent on her parents' tax return.She had a part-time job during 2014 and earned $850 during the year,which was her only income.What is her standard deduction?

Rena and Ronald,a married couple,each earn a salary of $200,000. They will be required to pay additional payroll taxes in 2014 of

A taxpayer can receive innocent spouse relief if

Generally,deductions for (not from)adjusted gross income are personal expenses specifically allowed by tax law.

Which of the following types of itemized deductions are included in the category of miscellaneous expenses that are deductible only if the aggregate amount of such expenses exceeds 2% of the taxpayer's adjusted gross income?