Question 1

The interest charged by the IRS for the first three months of 2015 was:

Accepted Answer

A)  3%. 
B)  5%. 
C)  4%. 
D) 6%. 
A)  3%. 
B)  5%. 
C)  4%. 
D) 6%.

Question 2

What is the simplest tax return form a taxpayer should file if he or she has only $41,000 in wages and is claiming head of household with a dependent child?

Accepted Answer

The simplest tax return form h

Question 3

To be a qualifying child, the taxpayer must meet three general tests and five specific tests. Which one is not part of the three general tests?

Accepted Answer

A)  Joint return test. 
B)  Citizen or resident test. 
C)  Dependent taxpayer test. 
D) Support test. 
A)  Joint return test. 
B)  Citizen or resident test. 
C)  Dependent taxpayer test. 
D) Support test.

Question 4

What was the amount of the personal exemption for 2015?

Accepted Answer

A)  $3,900. 
B)  $4,000. 
C)  $3,975. 
D) $3,950. 
A)  $3,900. 
B)  $4,000. 
C)  $3,975. 
D) $3,950.

Question 5

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2015?

Accepted Answer

The taxpayer can only claim a

Question 6

A taxpayer is married with a qualifying child (dependent), but she has been living separate from her spouse for the last five months of the year. However, she paid for more than half of the cost of keeping up the household. Her spouse does not want to file jointly. What filing status must she use when filing her tax return? She wants to obtain the maximum legal benefit.

Accepted Answer

A)  Single. 
B)  Married Filing Separately. 
C)  Qualifying Widow(er). 
D) Head of HouseholD.The taxpayer must have lived apart from her spouse for at least the last six months of the year to qualify for the Head of Household status. 
A)  Single. 
B)  Married Filing Separately. 
C)  Qualifying Widow(er). 
D) Head of HouseholD.The taxpayer must have lived apart from her spouse for at least the last six months of the year to qualify for the Head of Household status.

Question 7

John forgot to file his tax return by April 15. He did not file an extension. John finally filed his tax return on June 30 and had a remaining tax liability of $1,500. What is John's failure to file penalty? Assume he made all his payments on time.

Accepted Answer

A)  $375. 
B)  $225. 
C)  $233. 
D) $300. 
A)  $375. 
B)  $225. 
C)  $233. 
D) $300.

Question 8

For tax purposes, marital status is determined as of the __________ day of the year.

Accepted Answer

A)  first 
B)  third 
C)  last 
D) None of these 
A)  first 
B)  third 
C)  last 
D) None of these

Question 9

The tax liability for a single taxpayer with taxable income of $67,350 is:

Accepted Answer

A)  $12,700. 
B)  $10,103. 
C)  $12,638. 
D) $12,625. 
A)  $12,700. 
B)  $10,103. 
C)  $12,638. 
D) $12,625.

Question 10

A taxpayer can deduct a(an) __________ amount from AGI for each dependent.

Accepted Answer

A)  Deduction 
B)  Exemption 
C)  Itemized 
D) Adjustment 
A)  Deduction 
B)  Exemption 
C)  Itemized 
D) Adjustment

Question 11

A taxpayer must be married to claim Head of Household status.

Accepted Answer

A) True 
 B)False

Question 12

A taxpayer filing separately must show the name, address, and social security number of the spouse on the tax return.

Accepted Answer

A) True 
 B)False

Question 13

Using the appropriate tax tables or tax rate schedules, determine the amount of tax liability in each of the following instances. All answers should be rounded to the nearest dollar.
1. A single person with taxable income of $103,500.
2. A married couple filing jointly with taxable income of $37,700.
3. A head of household with taxable income of $87,925.
4. A person filing married filing separately with taxable income of $64,000.
5. A married couple filing jointly with taxable income of $144,600.

Accepted Answer

Answer1. $22,051. ($103,500 - 90,750) ×

Question 14

To be claimed as a dependent, a person must be a qualifying child or a qualifying relative.

Accepted Answer

A) True 
 B)False

Question 15

Many deductions and credits are determined with reference to adjusted gross income (AGI).

Accepted Answer

A) True 
 B)False

Question 16

The basic standard deduction in 2015 for a Head of Household taxpayer who is 41 years old and not blind is:

Accepted Answer

A)  $6,300. 
B)  $7,850. 
C)  $12,600. 
D) $9,250. 
A)  $6,300. 
B)  $7,850. 
C)  $12,600. 
D) $9,250.

Question 17

For a qualifying relative to be claimed as a dependent, this person must either be related to the taxpayer, or be a member of the taxpayer's household for the entire year. Select the relative who must be part of the taxpayer's household for the entire year.

Accepted Answer

A)  Mother. 
B)  Sister. 
C)  Cousin. 
D) Son-in-law. 
A)  Mother. 
B)  Sister. 
C)  Cousin. 
D) Son-in-law.

Question 18

The tax liability for a married couple with taxable income of $141,325 is:

Accepted Answer

A)  $35,331. 
B)  $26,919. 
C)  $20,276. 
D) $21,199. 
A)  $35,331. 
B)  $26,919. 
C)  $20,276. 
D) $21,199.

Question 19

A couple who is legally married on the last day of the tax year cannot file married filing separately.

Accepted Answer

A) True 
 B)False

Question 20

To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is not part of the four specific tests?

Accepted Answer

A)  Relationship test or member of household test. 
B)  Age test. 
C)  Support test. 
D) Gross income test. 
A)  Relationship test or member of household test. 
B)  Age test. 
C)  Support test. 
D) Gross income test.

The interest charged by the IRS for the first three months of 2015 was:

What is the simplest tax return form a taxpayer should file if he or she has only $41,000 in wages and is claiming head of household with a dependent child?

To be a qualifying child, the taxpayer must meet three general tests and five specific tests. Which one is not part of the three general tests?

What was the amount of the personal exemption for 2015?

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2015?

John forgot to file his tax return by April 15. He did not file an extension. John finally filed his tax return on June 30 and had a remaining tax liability of $1,500. What is John's failure to file penalty? Assume he made all his payments on time.

For tax purposes, marital status is determined as of the __________ day of the year.

The tax liability for a single taxpayer with taxable income of $67,350 is:

A taxpayer can deduct a(an) __________ amount from AGI for each dependent.

A taxpayer must be married to claim Head of Household status.

A taxpayer filing separately must show the name, address, and social security number of the spouse on the tax return.

To be claimed as a dependent, a person must be a qualifying child or a qualifying relative.

Many deductions and credits are determined with reference to adjusted gross income (AGI).

The basic standard deduction in 2015 for a Head of Household taxpayer who is 41 years old and not blind is:

For a qualifying relative to be claimed as a dependent, this person must either be related to the taxpayer, or be a member of the taxpayer's household for the entire year. Select the relative who must be part of the taxpayer's household for the entire year.

The tax liability for a married couple with taxable income of $141,325 is:

A couple who is legally married on the last day of the tax year cannot file married filing separately.

To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is not part of the four specific tests?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities:

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 2: Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

The interest charged by the IRS for the first three months of 2015 was:

What is the simplest tax return form a taxpayer should file if he or she has only $41,000 in wages and is claiming head of household with a dependent child?

To be a qualifying child, the taxpayer must meet three general tests and five specific tests. Which one is not part of the three general tests?

What was the amount of the personal exemption for 2015?

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2015?

John forgot to file his tax return by April 15. He did not file an extension. John finally filed his tax return on June 30 and had a remaining tax liability of $1,500. What is John's failure to file penalty? Assume he made all his payments on time.

For tax purposes, marital status is determined as of the __________ day of the year.

The tax liability for a single taxpayer with taxable income of $67,350 is:

A taxpayer can deduct a(an) __________ amount from AGI for each dependent.

A taxpayer must be married to claim Head of Household status.

A taxpayer filing separately must show the name, address, and social security number of the spouse on the tax return.

To be claimed as a dependent, a person must be a qualifying child or a qualifying relative.

Many deductions and credits are determined with reference to adjusted gross income (AGI).

The basic standard deduction in 2015 for a Head of Household taxpayer who is 41 years old and not blind is:

For a qualifying relative to be claimed as a dependent, this person must either be related to the taxpayer, or be a member of the taxpayer's household for the entire year. Select the relative who must be part of the taxpayer's household for the entire year.

The tax liability for a married couple with taxable income of $141,325 is:

A couple who is legally married on the last day of the tax year cannot file married filing separately.

To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is not part of the four specific tests?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities:

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters