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

What is the amount of the tax liability for a head of household person having taxable income of $122,500? All answers should be rounded to the nearest dollar.

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2015. 1. Leo and Mary who are under 65 and filing a joint return. They have no dependents. 2. Sergio who is single. 3. Peter who is over 65 and single. 4. Anna who is 38 and filing as head of household with a dependent child. 5. Frank who is 45 and blind and is filing as married filing separately.

The early withdrawal penalty is a for AGI deduction. Which form can the taxpayer use to claim this benefit?

Luisa's parents can claim her as a dependent on their tax return. In 2015, her only source of income was a part-time job as a medical clerk where she earned $2,500 during the year. What is Luisa's standard deduction?

The basic standard deduction in 2015 for a taxpayer, 69 and not blind, filing head of household is:

A taxpayer can qualify for head of household even though his or her parents are living in a separate household from that of the taxpayer (assume all other requirements are met).

What is the amount of the tax liability for a single person having taxable income of $59,200? All answers should be rounded to the nearest dollar.

The basic standard deduction in 2015 for a taxpayer, 67 and not blind, filing head of household is:

The maximum penalty for failure to file a tax return that is not due to fraud is 25%.

The personal exemption for 2015 is $4,000.

A taxpayer can claim a dependency exemption if the person is a qualifying child or a qualifying relative and the person meets three tests. List the three tests this person must meet.

A qualifying relative must be related to the taxpayer (as listed by the IRS), or be a member of the taxpayer's household for the entire year.

The basic standard deduction in 2015 for a single taxpayer who is 67 years old and not blind is:

A legally divorced taxpayer maintains a household for himself and maintains a separate household that is the principal place of abode of his dependent widowed mother. What filing status should he use when filing his tax return?

The federal individual income tax returns are the 1040ES, 1040A and 1040.

The taxpayer's spouse died at the beginning of 2015. She has a qualifying child. Which status should the taxpayer select when filing her tax return for 2015?

Failure to make required estimated payments will subject the taxpayer to a potential underpayment penalty plus interest. However, if the difference between the tax shown on the return and the amount of tax withheld for wages is less than _______, the taxpayer will not be assessed a penalty.

The taxpayer's brother must live with the taxpayer for the entire year to meet the relationship or member of household test under qualifying relatives.

The taxpayer's spouse died at the beginning of 2014. He has no qualifying child. Which status should the taxpayer select when filing his tax return for 2015?

If a taxpayer's spouse dies during the tax year, the taxpayer must file as a qualifying widow(er).