Question 1

Regarding the rules applicable to filing of income tax returns, which, if any, of the following is an incorrect statement:

Accepted Answer

A)  Married persons who file joint returns cannot later (after the due date of the return)  substitute separate returns.
B)  Married persons who file separate returns can later (after the due date of the return)  substitute a joint return.
C)  The usual test as to when a taxpayer must file a return is based on the total of the following: personal exemption + basic standard deduction + both additional standard deductions.
D)  Special filing requirement rules exist for taxpayers who are claimed as dependents of another.
E)  None of these.F) C) and D)
G) A) and D)

Question 2

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Basic standard deduction

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) J) and K)
N) A) and D)

Question 3

A dependent cannot claim a personal exemption on his or her own return.

Accepted Answer

A) True 
 B)False

Question 4

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Resident of Canada or Mexico

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) H) and J)
N) C) and G)

Question 5

Ellen, age 12, lives in the same household with her father, grandfather, and uncle.The cost of maintaining the household is provided by her grandfather (40%)  and her uncle (60%) .Disregarding tie-breaker rules, Ellen is a qualifying child as to:

Accepted Answer

A)  Only her father.
B)  Only her grandfather and uncle.
C)  Only her uncle.
D)  All parties involved (i.e., father, grandfather, and uncle) .
E)  None of these.F) All of the above
G) B) and C)

Question 6

During 2017, Lisa (age 66)  furnished more than 50% of the support of the following persons:
 ? Lisa's current husband who has no income and is not claimed by someone else as a dependent.
? Lisa's stepson (age 19)  who lives with her and earns $6,000 as a dance instructor.He dropped out of school a year ago.
? Lisa's ex-husband who does not live with her.The divorce occurred two years ago.
? Lisa's former brother-in-law who does not live with her.
Presuming all other dependency tests are met, on a separate return how many personal and dependency exemptions may Lisa claim?

Accepted Answer

A)  Two
B)  Three
C)  Four
D)  Five
E)  None of theseF) A) and E)
G) A) and D)

Question 7

Match the statements that relate to each other.
-Global system of taxation

Accepted Answer

A)  Available to a 70-year-old father claimed as a dependent by his son.
B)  Equal to tax liability divided by taxable income.
C)  The highest income tax rate applicable to a taxpayer.
D)  Not eligible for the standard deduction.
E)  No one qualified taxpayer meets the support test.F) Taxpayer's ex-husband does not qualify.G) A dependent child (age 18)  who has only unearned income.H) Highest applicable rate is 39.6%.I) Applicable rate could be as low as 0%.J) Maximum rate is 28%.K) Income from foreign sources is not subject to tax.L) No correct match provided.M) B) and L)
N) A) and J)

Question 8

In which, if any, of the following situations will the kiddie tax not apply?

Accepted Answer

A)  The child is married but does not file a joint return.
B)  The child has unearned income of $2,100 or less.
C)  The child has unearned income that exceeds more than half of his (or her)  support.
D)  The child is under age 24 and a full-time student.
E)  None of these.F) A) and B)
G) C) and D)

Question 9

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

Accepted Answer

A) True 
 B)False

Question 10

Monique is a resident of the U.S.and a citizen of France.If she files a U.S.income tax return, Monique cannot claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 11

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Abandoned spouse

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) E) and F)
N) A) and B)

Question 12

Match the statements that relate to each other.Note: Some choices may be used more than once.
-$1,050

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) B) and K)
N) E) and H)

Question 13

Kyle, whose wife died in December 2014, filed a joint tax return for 2014.He did not remarry, but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status in 2017?

Accepted Answer

A)  Head of household
B)  Surviving spouse
C)  Single
D)  Married filing separately
E)  None of theseF) B) and C)
G) A) and B)

Question 14

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,600 for 2017, they should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 15

During the current year, Doris received a large gift from her parents and a sizeable inheritance from an uncle.She also paid premiums on an insurance policy on her life.Doris is confused because she cannot find any place on Form 1040 to report these items.Explain.

Accepted Answer

Gifts and inheritances are exclusions fr...

Question 16

Which, if any, of the following statements relating to the standard deduction is correct?

Accepted Answer

A)  If a taxpayer dies during the year, his (or her)  standard deduction must be prorated.
B)  If a taxpayer is claimed as a dependent of another, his (or her)  additional standard deduction is allowed in full (i.e., no adjustment is necessary) .
C)  If spouses file separate returns, both spouses must claim the standard deduction (rather than itemize their deductions from AGI) .
D)  If a taxpayer is claimed as a dependent of another, no basic standard deduction is allowed.
E)  None of these.F) B) and C)
G) None of the above

Question 17

The basic and additional standard deductions both are subject to an annual adjustment for inflation.

Accepted Answer

A) True 
 B)False

Question 18

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Surviving spouse

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) A) and E)
N) A) and F)

Question 19

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Scholarship funds for room and board

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) F) and J)
N) C) and J)

Question 20

Nelda is married to Chad, who abandoned her in early June of 2017.She has not seen or communicated with him since then.She maintains a household in which she and her two dependent children live.Which of the following statements about Nelda's filing status in 2017 is correct?

Accepted Answer

A)  Nelda can use the rates for single taxpayers.
B)  Nelda can file a joint return with Chad.
C)  Nelda can file as a surviving spouse.
D)  Nelda can file as a head of household.
E)  None of these statements is appropriate.F) B) and E)
G) B) and C)

Exam 9: Individuals As the Taxpayers

Regarding the rules applicable to filing of income tax returns, which, if any, of the following is an incorrect statement:

Correct Answer
verified

Nelda is married to Chad, who abandoned her in early June of 2017.She has not seen or communicated with him since then.She maintains a household in which she and her two dependent children live.Which of the following statements about Nelda's filing status in 2017 is correct?

Correct Answer
verified

Which, if any, of the following statements relating to the standard deduction is correct?

Correct Answer
verified

The basic and additional standard deductions both are subject to an annual adjustment for inflation.

Correct Answer
verified

A dependent cannot claim a personal exemption on his or her own return.

Correct Answer
verified

Match the statements that relate to each other. -Global system of taxation

Correct Answer
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Match the statements that relate to each other.Note: Some choices may be used more than once. -$1,050

Correct Answer
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During the current year, Doris received a large gift from her parents and a sizeable inheritance from an uncle.She also paid premiums on an insurance policy on her life.Doris is confused because she cannot find any place on Form 1040 to report these items.Explain.

Correct Answer
verified
Gifts and inheritances are exclusions fr...
View Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -Surviving spouse

Correct Answer
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Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,600 for 2017, they should not claim the standard deduction.

Correct Answer
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In which, if any, of the following situations will the kiddie tax not apply?

Correct Answer
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Match the statements that relate to each other.Note: Some choices may be used more than once. -Resident of Canada or Mexico

Correct Answer
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Monique is a resident of the U.S.and a citizen of France.If she files a U.S.income tax return, Monique cannot claim the standard deduction.

Correct Answer
verified

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

Correct Answer
verified

Match the statements that relate to each other.Note: Some choices may be used more than once. -Scholarship funds for room and board

Correct Answer
verified

Ellen, age 12, lives in the same household with her father, grandfather, and uncle.The cost of maintaining the household is provided by her grandfather (40%) and her uncle (60%) .Disregarding tie-breaker rules, Ellen is a qualifying child as to:

Correct Answer
verified

Correct Answer
verified

Match the statements that relate to each other.Note: Some choices may be used more than once. -Abandoned spouse

Correct Answer
verified

Kyle, whose wife died in December 2014, filed a joint tax return for 2014.He did not remarry, but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status in 2017?

Correct Answer
verified

Match the statements that relate to each other.Note: Some choices may be used more than once. -Basic standard deduction

Correct Answer
verified

Exam 9: Individuals As the Taxpayers

Regarding the rules applicable to filing of income tax returns, which, if any, of the following is an incorrect statement:

Correct AnswerverifiedShow Answer

Nelda is married to Chad, who abandoned her in early June of 2017.She has not seen or communicated with him since then.She maintains a household in which she and her two dependent children live.Which of the following statements about Nelda's filing status in 2017 is correct?

Correct AnswerverifiedShow Answer

Which, if any, of the following statements relating to the standard deduction is correct?

Correct AnswerverifiedShow Answer

The basic and additional standard deductions both are subject to an annual adjustment for inflation.

Correct AnswerverifiedShow Answer

A dependent cannot claim a personal exemption on his or her own return.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. -Global system of taxation

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -$1,050

Correct AnswerverifiedShow Answer

During the current year, Doris received a large gift from her parents and a sizeable inheritance from an uncle.She also paid premiums on an insurance policy on her life.Doris is confused because she cannot find any place on Form 1040 to report these items.Explain.

Correct AnswerverifiedGifts and inheritances are exclusions fr...View AnswerShow Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -Surviving spouse

Correct AnswerverifiedShow Answer

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,600 for 2017, they should not claim the standard deduction.

Correct AnswerverifiedShow Answer

In which, if any, of the following situations will the kiddie tax not apply?

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -Resident of Canada or Mexico

Correct AnswerverifiedShow Answer

Monique is a resident of the U.S.and a citizen of France.If she files a U.S.income tax return, Monique cannot claim the standard deduction.

Correct AnswerverifiedShow Answer

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -Scholarship funds for room and board

Correct AnswerverifiedShow Answer

Ellen, age 12, lives in the same household with her father, grandfather, and uncle.The cost of maintaining the household is provided by her grandfather (40%) and her uncle (60%) .Disregarding tie-breaker rules, Ellen is a qualifying child as to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -Abandoned spouse

Correct AnswerverifiedShow Answer

Kyle, whose wife died in December 2014, filed a joint tax return for 2014.He did not remarry, but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status in 2017?

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -Basic standard deduction

Correct AnswerverifiedShow Answer

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Gifts and inheritances are exclusions fr...
View Answer

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