Question 1

Which of the following statements about a qualifying person for head of household filing status is true?

Accepted Answer

A)  One individual (who is a qualifying person) may qualify more than one taxpayer for head of household filing status. 
B)  The taxpayer is required to live with a qualifying person for the entire year in order to qualify for head of household filing status. 
C)  A taxpayer's parent cannot be a qualifying person for purposes of determining head of household filing status. 
D)  A qualifying person must have a family relationship with the taxpayer in order for the qualifying person to qualify the taxpayer for head of household filing status. 
A)  One individual (who is a qualifying person) may qualify more than one taxpayer for head of household filing status. 
B)  The taxpayer is required to live with a qualifying person for the entire year in order to qualify for head of household filing status. 
C)  A taxpayer's parent cannot be a qualifying person for purposes of determining head of household filing status. 
D)  A qualifying person must have a family relationship with the taxpayer in order for the qualifying person to qualify the taxpayer for head of household filing status.

Question 2

Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2016, Ed and Jane realized the following items of income and expense: $$\begin{array} { | l | r | } 
\hline \text { Item } & \text { Amount } \
\hline \text { Ed's Salary } & \$ 35,000 \
\hline \text { Jane's Salary } & 34,400 \
\hline \text { Municipal bond interest income } & 400 \
\hline \text { Alimony paid (for AGl deduction) } & ( 7,000 ) \
\hline \text { Real propery tax (from AGl deduction) } & ( 10,000 ) \
\hline
\end{array}$$ They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2016 standard deduction amount is $12,600 and the 2016 exemption amount is $4,050.
What is the couple's gross income?

Accepted Answer

$69,400, s

Question 3

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent mother and/or father.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following series of inequalities is generally most accurate?

Accepted Answer

A)  Gross income ≥ adjusted gross income ≥ taxable income 
B)  Adjusted gross income ≥ gross income ≥ taxable income 
C)  Adjusted gross income ≥ taxable income ≥ gross income 
D)  Gross income ≥ taxable income ≥ adjusted gross income 
A)  Gross income ≥ adjusted gross income ≥ taxable income 
B)  Adjusted gross income ≥ gross income ≥ taxable income 
C)  Adjusted gross income ≥ taxable income ≥ gross income 
D)  Gross income ≥ taxable income ≥ adjusted gross income

Question 5

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year, the taxpayer will qualify for head of household filing status.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding exclusions and/or deferrals is false?

Accepted Answer

A)  Exclusions are favorable because taxpayers never pay tax on income that is excluded. 
B)  Interest income from municipal bonds is excluded from gross income. 
C)  Deferrals are income items taxpayers realize in one year but include in gross income in a subsequent year. 
D)  An income item need not be realized in order to qualify as an exclusion item. 
A)  Exclusions are favorable because taxpayers never pay tax on income that is excluded. 
B)  Interest income from municipal bonds is excluded from gross income. 
C)  Deferrals are income items taxpayers realize in one year but include in gross income in a subsequent year. 
D)  An income item need not be realized in order to qualify as an exclusion item.

Question 7

By the end of year 1, Harold and Jamie Allred had been married for 30 years and have filed a joint return every year of their marriage. Their three sons, Jacob, Larry, and Andi, are ages 13, 16, and 23 respectively and all live at home and are fully supported by their parents. Andi is employed full time, earning $17,000 in year 1. How many exemptions are Harold and Jamie entitled to claim?

Accepted Answer

The Allreds may claim four exemptions. T

Question 8

Which of the following statements regarding for AGI tax deductions is true?

Accepted Answer

A)  Taxpayers subtract for AGI deductions from gross income to determine AGI. 
B)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's standard deduction amount. 
C)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's deductible exemption amounts. 
D)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's itemized deductions. 
A)  Taxpayers subtract for AGI deductions from gross income to determine AGI. 
B)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's standard deduction amount. 
C)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's deductible exemption amounts. 
D)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's itemized deductions.

Question 9

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements regarding exemptions is correct?

Accepted Answer

A)  Personal exemptions are more valuable than dependency exemptions. 
B)  Taxpayers filing a married filing joint return are limited to two exemptions on their tax returns. 
C)  Exemption amounts are considered to be for AGI deductions. 
D)  Taxpayers subtract exemption deductions from adjusted gross income in determining taxable income. 
A)  Personal exemptions are more valuable than dependency exemptions. 
B)  Taxpayers filing a married filing joint return are limited to two exemptions on their tax returns. 
C)  Exemption amounts are considered to be for AGI deductions. 
D)  Taxpayers subtract exemption deductions from adjusted gross income in determining taxable income.

Question 11

In June of year 1, Edgar's wife Cathy died and Edgar did not remarry during the year. What is his filing status for year 1? (assuming they did not have any dependents)

Accepted Answer

A)  Married filing jointly. 
B)  Single. 
C)  Qualifying widower. 
D)  Head of household. 
A)  Married filing jointly. 
B)  Single. 
C)  Qualifying widower. 
D)  Head of household.

Question 12

Sheri and Jake Woodhouse have one daughter, Emma, who is 16 years old. They also have taken in Emma's friend, Harriet, who has lived with them since February of the current year and is also 16 years of age. The Woodhouses have not legally adopted Harriet but Emma often refers to Harriet as "her sister." The Woodhouses provide all of the support for both girls, and both girls live at the Woodhouse residence. Which of the following statements is true regarding the dependency exemptions (and the reason for the exemptions) Sheri and Jake may claim for the current year for these girls?

Accepted Answer

A)  One exemption for their daughter Emma as a qualifying child but no exemption for Harriet. 
B)  One exemption for Emma as a qualifying child and one exemption for Harriet as a qualifying child. 
C)  One exemption for Emma as a qualifying child and one exemption for Harriet as a qualifying relative. 
D)  None of these statements is true. 
A)  One exemption for their daughter Emma as a qualifying child but no exemption for Harriet. 
B)  One exemption for Emma as a qualifying child and one exemption for Harriet as a qualifying child. 
C)  One exemption for Emma as a qualifying child and one exemption for Harriet as a qualifying relative. 
D)  None of these statements is true.

Question 13

The Inouyes filed jointly in 2016. Their AGI is $78,000. They reported $16,000 of itemized deductions and they have two children, one of whom qualifies as their dependent. The 2016 standard deduction amount is $12,600 and each exemption is $4,050. What is the total amount of from AGI deductions they are allowed to claim on their 2016 tax return?

Accepted Answer

$28,150, determined as follows:
From AGI

Question 14

If an unmarried taxpayer is able to claim a dependency exemption for another individual, the taxpayer is automatically eligible for the head of household filing status.

Accepted Answer

A) True 
 B)False

Question 15

An individual with gross income of $5,000 could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Accepted Answer

A) True 
 B)False

Question 16

Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2016, Ed and Jane realized the following items of income and expense: $$\begin{array} { | l | r | } 
\hline \text { Item } & \text { Amount } \
\hline \text { Ed's Salary } & \$ 35,000 \
\hline \text { Jane's Salary } & 34,400 \
\hline \text { Municipal bond interest income } & 400 \
\hline \text { Alimony paid (for AGl deduction) } & ( 7,000 ) \
\hline \text { Real propery tax (from AGl deduction) } & ( 10,000 ) \
\hline
\end{array}$$ They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2016 standard deduction amount is $12,600 and the 2016 exemption amount is $4,050.
What are the couple's taxes due or tax refund? (use the tax rate schedules not tax tables)

Accepted Answer

$1,920.00

Question 17

It is generally more advantageous from a tax perspective for a married couple to file separately than it is for them to file jointly.

Accepted Answer

A) True 
 B)False

Question 18

Sullivan's wife Susan died four years ago. Sullivan has not remarried and he maintains a home for his dependent child Sammy. In 2016, Sullivan received $70,000 of salary from his employer and he paid $6,000 of itemized deductions. What is Sullivan's taxable income for 2016?

Accepted Answer

Taxable in

Question 19

Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2016, Ed and Jane realized the following items of income and expense: $$\begin{array} { | l | c | l | } 
\hline \text { Description } & \text { Amount } & \text { Explanation } \
\hline \begin{array} { l } 
\text { (1) Gross } \
\text { income }
\end{array} & \$ 122,000 & \$ 120,000 \text { from business + } \
&&\$ 2,000 \text { interest income } \
\hline \begin{array} { l } 
\text { (2) Business } \
\text { expenses }
\end{array} & ( 40,000 ) & \text { For AGl deduction } \
\hline \begin{array} { l } 
\text { Adjusted Gross } \
\text { income }
\end{array} & \$ 82,000 & ( 1 ) + ( 2 ) \
\hline
\end{array}$$ They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2016 standard deduction amount is $12,600 and the 2016 exemption amount is $4,050.
What is the couple's adjusted gross income?

Accepted Answer

$62,400, s

Question 20

In order to be a qualifying relative of another, an individual's gross income must be less than _______.

Accepted Answer

A)  the applicable standard deduction amount 
B)  the personal and dependency exemption amount 
C)  one-half of the individual's support 
D)  None of these 
A)  the applicable standard deduction amount 
B)  the personal and dependency exemption amount 
C)  one-half of the individual's support 
D)  None of these

Which of the following statements about a qualifying person for head of household filing status is true?

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent mother and/or father.

Which of the following series of inequalities is generally most accurate?

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year, the taxpayer will qualify for head of household filing status.

Which of the following statements regarding exclusions and/or deferrals is false?

Which of the following statements regarding for AGI tax deductions is true?

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

Which of the following statements regarding exemptions is correct?

In June of year 1, Edgar's wife Cathy died and Edgar did not remarry during the year. What is his filing status for year 1? (assuming they did not have any dependents)

If an unmarried taxpayer is able to claim a dependency exemption for another individual, the taxpayer is automatically eligible for the head of household filing status.

An individual with gross income of $5,000 could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

It is generally more advantageous from a tax perspective for a married couple to file separately than it is for them to file jointly.

Sullivan's wife Susan died four years ago. Sullivan has not remarried and he maintains a home for his dependent child Sammy. In 2016, Sullivan received $70,000 of salary from his employer and he paid $6,000 of itemized deductions. What is Sullivan's taxable income for 2016?

In order to be a qualifying relative of another, an individual's gross income must be less than _______.

An Introduction to Tax

Tax Compliance , the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S: Corporations

Filters

Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

Which of the following statements about a qualifying person for head of household filing status is true?

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent mother and/or father.

Which of the following series of inequalities is generally most accurate?

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year, the taxpayer will qualify for head of household filing status.

Which of the following statements regarding exclusions and/or deferrals is false?

Which of the following statements regarding for AGI tax deductions is true?

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

Which of the following statements regarding exemptions is correct?

In June of year 1, Edgar's wife Cathy died and Edgar did not remarry during the year. What is his filing status for year 1? (assuming they did not have any dependents)

If an unmarried taxpayer is able to claim a dependency exemption for another individual, the taxpayer is automatically eligible for the head of household filing status.

An individual with gross income of $5,000 could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

It is generally more advantageous from a tax perspective for a married couple to file separately than it is for them to file jointly.

Sullivan's wife Susan died four years ago. Sullivan has not remarried and he maintains a home for his dependent child Sammy. In 2016, Sullivan received $70,000 of salary from his employer and he paid $6,000 of itemized deductions. What is Sullivan's taxable income for 2016?

In order to be a qualifying relative of another, an individual's gross income must be less than _______.

An Introduction to Tax

Tax Compliance , the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S: Corporations

Filters