Question 1

Which amount represents the standard deduction for a taxpayer who is single and 68 years of age?

Accepted Answer

A) $6,350. 
B) $7,550. 
C) $7,850. 
D) $7,900.

Question 2

On December 31,2017,a taxpayer received the notification that he was legally divorced.However,he lived with his spouse for 8 months during 2017.He has no dependent children.What status should he select when filing his tax return for 2017?

Accepted Answer

A) Married Filing Separately. 
B) Head of Household. 
C) Married Filing Jointly. 
D) Single.

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 five specific tests?

Accepted Answer

A) Gross income test. 
B) Relationship test. 
C) Residency test. 
D) Special test for qualifying child of more than one taxpayer.

Question 4

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

Accepted Answer

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

Question 5

Criminal penalties only apply to:

Accepted Answer

A) Careless disregard for tax authority. 
B) Willful failure to file a return. 
C) Tax evasion. 
D) Willful failure to file a return and tax evasion.

Question 6

The personal exemption for 2017 is $4,050.

Accepted Answer

A) True 
 B)False

Question 7

Ed's parents can claim him as a dependent on their tax return.In 2017,his only source of income was $1,050 of interest income received from Global Bank.What is Ed's standard deduction?

Accepted Answer

A) $1,050. 
B) $1,000. 
C) $4,050. 
D) $350.

Question 8

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

Accepted Answer

A) $35,331. 
B) $26,809. 
C) $20,276. 
D) $21,199.

Question 9

The taxpayer must provide over ________ of the qualifying relative's support to be able to claim a dependency exemption.

Accepted Answer

A) 49% 
B) 50% 
C) 51% 
D) 75%

Question 10

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?

Accepted Answer

A) Married Filing Separately. 
B) Single. 
C) Qualifying widow(er). 
D) Head of Household.

Question 11

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is part of the four specific tests?

Accepted Answer

A) Gross income test. 
B) Age test. 
C) Citizen or resident test. 
D) Residency test.

Question 12

To be a qualifying child,the taxpayer must meet three general tests and five specific tests.What are the three general tests?

Accepted Answer

A) Relationship test,residency test and gross income test. 
B) Support test,age test and relationship test. 
C) Dependent taxpayer test,relationship test and citizen or resident test. 
D) Dependent taxpayer test,joint return test and citizen or resident test.

Question 13

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.

Accepted Answer

A) $1,250 
B) $500 
C) $850 
D) $1,000

Question 14

What is the amount of the tax liability for a married couple filing jointly having taxable income of $96,843? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tables or Tax Rate Schedules.

Accepted Answer

A) $14,526. 
B) $13,604. 
C) $15,684. 
D) $15,923.

Question 15

What is the amount of the tax liability for a head of household person having taxable income of $87,573? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tables or Tax Rate Schedules.

Accepted Answer

A) $16,146. 
B) $16,134. 
C) $17,963. 
D) $17,633.

Question 16

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.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.

Accepted Answer

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

Question 20

An extension to file a tax return is an extension of time to file and an extension of time to pay.

Accepted Answer

A) True 
 B)False

Exam 2: Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Which amount represents the standard deduction for a taxpayer who is single and 68 years of age?

On December 31,2017,a taxpayer received the notification that he was legally divorced.However,he lived with his spouse for 8 months during 2017.He has no dependent children.What status should he select when filing his tax return for 2017?

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

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

Criminal penalties only apply to:

The personal exemption for 2017 is $4,050.

Ed's parents can claim him as a dependent on their tax return.In 2017,his only source of income was $1,050 of interest income received from Global Bank.What is Ed's standard deduction?

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

The taxpayer must provide over ________ of the qualifying relative's support to be able to claim a dependency exemption.

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?

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is part of the four specific tests?

To be a qualifying child,the taxpayer must meet three general tests and five specific tests.What are the three general tests?

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.

What is the amount of the tax liability for a married couple filing jointly having taxable income of $96,843? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tables or Tax Rate Schedules.

What is the amount of the tax liability for a head of household person having taxable income of $87,573? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tables or Tax Rate Schedules.

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?

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

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

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.

An extension to file a tax return is an extension of time to file and an extension of time to pay.