Question 1

Which condition listed below is not required for a taxpayer to qualify as a qualifying widow(er) with dependent child?

Accepted Answer

A)  The household was the principal place of abode for the entire year of both the taxpayer and his or her child. 
B)  Taxpayer must remarry before the end of the tax year in question. 
C)  Taxpayer paid more than half the cost of keeping up a household. 
D) Taxpayer was eligible to file a joint return in the year the spouse died. 
A)  The household was the principal place of abode for the entire year of both the taxpayer and his or her child. 
B)  Taxpayer must remarry before the end of the tax year in question. 
C)  Taxpayer paid more than half the cost of keeping up a household. 
D) Taxpayer was eligible to file a joint return in the year the spouse died.

Question 2

What is the amount of the social security wage limitation for 2015?

Accepted Answer

A)  $106,800. 
B)  $110,100. 
C)  $118,500. 
D) $117,000. 
A)  $106,800. 
B)  $110,100. 
C)  $118,500. 
D) $117,000.

Question 3

The amount of tax liability for a taxpayer depends on many factors, including the filing status of the taxpayer.

Accepted Answer

A) True 
 B)False

Question 4

What is the amount of the tax liability for a married person filing a separate return and having taxable income of $115,715? All answers should be rounded to the nearest dollar.

Accepted Answer

A)  $26,435. 
B)  $25,926. 
C)  $32,400. 
D) $25,950. 
A)  $26,435. 
B)  $25,926. 
C)  $32,400. 
D) $25,950.

Question 5

The IRS can impose a _______ penalty on any portion of understatement of tax that is attributable to fraud.

Accepted Answer

A)  20% 
B)  25% 
C)  75% 
D) 5% 
A)  20% 
B)  25% 
C)  75% 
D) 5%

Question 6

A taxpayer who has income that is not subject to withholding is never required to make estimated payments during the year.

Accepted Answer

A) True 
 B)False

Question 7

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

Accepted Answer

A)  $25,701. 
B)  $31,056. 
C)  $18,634. 
D) $25,379. 
A)  $25,701. 
B)  $31,056. 
C)  $18,634. 
D) $25,379.

Question 8

What is the amount of the personal and dependency exemption for 2015?

Accepted Answer

A)  $3,950. 
B)  $6,300. 
C)  $4,000. 
D) $3,975. 
A)  $3,950. 
B)  $6,300. 
C)  $4,000. 
D) $3,975.

Question 9

In a multiple support agreement, the taxpayer who will receive the exemption must file all the Forms 2120 with his or her tax return.

Accepted Answer

A) True 
 B)False

Question 10

The tax tables stop at taxable income of $115,000.

Accepted Answer

A) True 
 B)False

Question 11

Personal exemptions are for the taxpayer and spouse.

Accepted Answer

A) True 
 B)False

Question 12

Mirtha is 21 years of age and a full-time student living by herself. She had wages of $23,000 for 2015. Can Mirtha claim the exemption for herself on her tax return?

Accepted Answer

A)  Mirtha's parents can claim the exemption. 
B)  Both, Mirtha and her parents can claim the exemption. 
C)  Yes, Mirtha can claim the exemption. 
D) No one can claim the exemption for Mirtha. 
A)  Mirtha's parents can claim the exemption. 
B)  Both, Mirtha and her parents can claim the exemption. 
C)  Yes, Mirtha can claim the exemption. 
D) No one can claim the exemption for Mirtha.

Question 13

Peter forgot to file his tax return by April 15. He did not file an extension. Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500. What is Peter's failure to file penalty? Assume he made all his payments on time.

Accepted Answer

A)  $875. 
B)  $525. 
C)  $350. 
D) $700. 
A)  $875. 
B)  $525. 
C)  $350. 
D) $700.

Question 14

David and Martha were divorced on December 31, 2015. Can they file their 2015 income tax return using married filing jointly? Why or Why not? What other filing status choices do they have, if any?

Accepted Answer

No, David and Martha must file as single

Question 15

What is the amount of the standard deduction for Evelyn who is a full-time student and claimed as a dependent by her parents? She earned $2,700 in wages in 2015.

Accepted Answer

Evelyn's standard deduction is $3,050. W

Question 16

The basic standard deduction in 2015 for a taxpayer, under 65 and not blind, filing married filing jointly is:

Accepted Answer

A)  $12,400. 
B)  $12,200. 
C)  $12,600. 
D) $9,250. 
A)  $12,400. 
B)  $12,200. 
C)  $12,600. 
D) $9,250.

Question 17

When a taxpayer's AGI exceeds certain levels, certain tax benefits are reduced or eliminated.

Accepted Answer

A) True 
 B)False

Question 18

When a taxpayer can be claimed as a dependent on the tax return of another individual, the basic standard deduction for the taxpayer is limited to the greater of (a) _______, or (b) the taxpayer's earned income plus $350, but not more than the amount of the basic standard deduction.

Accepted Answer

A)  $1,000 
B)  $950 
C)  $1,050 
D) $350 
A)  $1,000 
B)  $950 
C)  $1,050 
D) $350

Question 19

Which of the following items would not be considered as support for a dependency exemption?

Accepted Answer

A)  medical insurance premiums. 
B)  food. 
C)  clothing. 
D) life insurance premiums. 
A)  medical insurance premiums. 
B)  food. 
C)  clothing. 
D) life insurance premiums.

Question 20

A married couple can file a joint return only if both have earned income.

Accepted Answer

A) True 
 B)False

Which condition listed below is not required for a taxpayer to qualify as a qualifying widow(er) with dependent child?

What is the amount of the social security wage limitation for 2015?

The amount of tax liability for a taxpayer depends on many factors, including the filing status of the taxpayer.

What is the amount of the tax liability for a married person filing a separate return and having taxable income of $115,715? All answers should be rounded to the nearest dollar.

The IRS can impose a _______ penalty on any portion of understatement of tax that is attributable to fraud.

A taxpayer who has income that is not subject to withholding is never required to make estimated payments during the year.

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

What is the amount of the personal and dependency exemption for 2015?

In a multiple support agreement, the taxpayer who will receive the exemption must file all the Forms 2120 with his or her tax return.

The tax tables stop at taxable income of $115,000.

Personal exemptions are for the taxpayer and spouse.

Mirtha is 21 years of age and a full-time student living by herself. She had wages of $23,000 for 2015. Can Mirtha claim the exemption for herself on her tax return?

Peter forgot to file his tax return by April 15. He did not file an extension. Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500. What is Peter's failure to file penalty? Assume he made all his payments on time.

David and Martha were divorced on December 31, 2015. Can they file their 2015 income tax return using married filing jointly? Why or Why not? What other filing status choices do they have, if any?

What is the amount of the standard deduction for Evelyn who is a full-time student and claimed as a dependent by her parents? She earned $2,700 in wages in 2015.

The basic standard deduction in 2015 for a taxpayer, under 65 and not blind, filing married filing jointly is:

When a taxpayer's AGI exceeds certain levels, certain tax benefits are reduced or eliminated.

When a taxpayer can be claimed as a dependent on the tax return of another individual, the basic standard deduction for the taxpayer is limited to the greater of (a) _______, or (b) the taxpayer's earned income plus $350, but not more than the amount of the basic standard deduction.

Which of the following items would not be considered as support for a dependency exemption?

A married couple can file a joint return only if both have earned income.

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

Which condition listed below is not required for a taxpayer to qualify as a qualifying widow(er) with dependent child?

What is the amount of the social security wage limitation for 2015?

The amount of tax liability for a taxpayer depends on many factors, including the filing status of the taxpayer.

What is the amount of the tax liability for a married person filing a separate return and having taxable income of $115,715? All answers should be rounded to the nearest dollar.

The IRS can impose a _______ penalty on any portion of understatement of tax that is attributable to fraud.

A taxpayer who has income that is not subject to withholding is never required to make estimated payments during the year.

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

What is the amount of the personal and dependency exemption for 2015?

In a multiple support agreement, the taxpayer who will receive the exemption must file all the Forms 2120 with his or her tax return.

The tax tables stop at taxable income of $115,000.

Personal exemptions are for the taxpayer and spouse.

Mirtha is 21 years of age and a full-time student living by herself. She had wages of $23,000 for 2015. Can Mirtha claim the exemption for herself on her tax return?

Peter forgot to file his tax return by April 15. He did not file an extension. Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500. What is Peter's failure to file penalty? Assume he made all his payments on time.

David and Martha were divorced on December 31, 2015. Can they file their 2015 income tax return using married filing jointly? Why or Why not? What other filing status choices do they have, if any?

What is the amount of the standard deduction for Evelyn who is a full-time student and claimed as a dependent by her parents? She earned $2,700 in wages in 2015.

The basic standard deduction in 2015 for a taxpayer, under 65 and not blind, filing married filing jointly is:

When a taxpayer's AGI exceeds certain levels, certain tax benefits are reduced or eliminated.

When a taxpayer can be claimed as a dependent on the tax return of another individual, the basic standard deduction for the taxpayer is limited to the greater of (a) _______, or (b) the taxpayer's earned income plus $350, but not more than the amount of the basic standard deduction.

Which of the following items would not be considered as support for a dependency exemption?

A married couple can file a joint return only if both have earned income.

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