Question 1

Adjusted gross income (AGI) sets the ceiling or the floor for certain deductions.Explain and illustrate what this statement means.

Accepted Answer

By a ceiling what is meant is that the d...

Question 2

A decrease in a taxpayer's AGI could increase the amount of medical expenses that can be deducted.

Accepted Answer

A) True 
 B)False

Question 3

Derek, age 46, is a surviving spouse.If he has itemized deductions of $12,900 for 2017, Derek should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 4

Because they appear on page 1 of Form 1040, itemized deductions are also referred to as "page 1 deductions."

Accepted Answer

A) True 
 B)False

Question 5

The filing status of a taxpayer (e.g., single, head of household) must be identified before the applicable standard deduction is determined.

Accepted Answer

A) True 
 B)False

Question 6

In 2017, Tom is single and has AGI of $50,000.He is age 70, has no dependents, and has itemized deductions (i.e., from AGI) of $7,000.Determine Tom's taxable income for 2017.

Accepted Answer

$38,050.Tom's standard deduction is $6,3...

Question 7

Benjamin, age 16, is claimed as a dependent by his parents.During 2017, he earned $850 at a car wash.Benjamin's standard deduction is $1,400 ($1,050 + $350).

Accepted Answer

A) True 
 B)False

Question 8

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Accepted Answer

A) True 
 B)False

Question 9

Match the statements that relate to each other.Note: Some choices may be used more than once.
-Age of a qualifying child

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) F) and K) D

Question 10

In 2017, Cindy had the following transactions:   Salary $90,000 Short-term capital gain from a stock investment 4,000 Moving expense to change jobs (11,000)  Received repayment of $20,000 loan she made to her sister in 2013 (includes no interest)  20,000 State income taxes (5,000) \begin{array}{lr}	ext { Salary } & \$ 90,000 \	ext { Short-term capital gain from a stock investment } & 4,000 \	ext { Moving expense to change jobs } & (11,000)  \	ext { Received repayment of } \$ 20,000 	ext { loan she made to her sister in } 2013 	ext { (includes no interest)  } & 20,000 \	ext { State income taxes } & (5,000) \end{array} Salary  Short-term capital gain from a stock investment  Moving expense to change jobs  Received repayment of $20,000 loan she made to her sister in 2013 (includes no interest)   State income taxes ​$90,0004,000(11,000) 20,000(5,000) ​  Cindy's AGI is:

Accepted Answer

A)  $114,000.
B)  $103,000.
C)  $98,000.
D)  $94,000.
E)  $83,000. F) A) and B)
G) C) and D)

Question 11

In which, if any, of the following situations may the individual not be claimed as a dependent of the taxpayer?

Accepted Answer

A)  A former spouse who lives with the taxpayer (divorce took place last year) .
B)  A stepmother who does not live with the taxpayer.
C)  A married daughter who lives with the taxpayer.
D)  A half-brother who does not live with the taxpayer and is a citizen and resident of Canada.
E)  A cousin who does not live with the taxpayer.F) B) and C)
G) A) and D)

Question 12

Match the statements that relate to each other.
-Long-term capital gains

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) H) and I)
N) B) and J)

Question 13

Under the income tax formula, a taxpayer must choose between deductions for AGI and the standard deduction.

Accepted Answer

A) True 
 B)False

Question 14

Kyle and Liza are married and under 65 years of age.During 2017, they furnish more than half of the support of their 19-year old daughter, May, who lives with them.She graduated from high school in May 2016.May earns $15,000 from a part-time job, most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father, who died on January 3, 2017, at age 90, has for many years qualified as their dependent.How many personal and dependency exemptions should Kyle and Liza claim?

Accepted Answer

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

Question 15

Meg, age 23, is a full-time law student and is claimed by her parents as a dependent.During 2017, she received $1,400 interest income from a bank savings account and $6,100 from a part-time job.What is Meg's taxable income for 2017?

Accepted Answer

$1,150.Meg's standard deduction is the g...

Question 16

A taxpayer who itemizes must use Form 1040, and cannot use Form 1040EZ or Form 1040A.

Accepted Answer

A) True 
 B)False

Question 17

Match the statements that relate to each other.
-Nonresident alien

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) F) and L)
N) B) and C) D

Question 18

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

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 F)
N) A) and L)

Question 19

Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live.Crissa, age 22, earns $11,000 during 2017 as a model.Katelyn does not qualify for head of household filing status.

Accepted Answer

A) True 
 B)False  True

Question 20

After Ellie moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $1,000.The $1,000 is not income to Ellie.

Accepted Answer

A) True 
 B)False

Exam 9: Individuals As the Taxpayers

Adjusted gross income (AGI) sets the ceiling or the floor for certain deductions.Explain and illustrate what this statement means.

Correct Answer
verified
By a ceiling what is meant is that the d...
View Answer

A decrease in a taxpayer's AGI could increase the amount of medical expenses that can be deducted.

Correct Answer
verified

Derek, age 46, is a surviving spouse.If he has itemized deductions of $12,900 for 2017, Derek should not claim the standard deduction.

Correct Answer
verified

Because they appear on page 1 of Form 1040, itemized deductions are also referred to as "page 1 deductions."

Correct Answer
verified

The filing status of a taxpayer (e.g., single, head of household) must be identified before the applicable standard deduction is determined.

Correct Answer
verified

In 2017, Tom is single and has AGI of $50,000.He is age 70, has no dependents, and has itemized deductions (i.e., from AGI) of $7,000.Determine Tom's taxable income for 2017.

Correct Answer
verified
$38,050.Tom's standard deduction is $6,3...
View Answer

Benjamin, age 16, is claimed as a dependent by his parents.During 2017, he earned $850 at a car wash.Benjamin's standard deduction is $1,400 ($1,050 + $350).

Correct Answer
verified

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Correct Answer
verified

Match the statements that relate to each other.Note: Some choices may be used more than once. -Age of a qualifying child

Correct Answer
verified
D

Correct Answer
verified

In which, if any, of the following situations may the individual not be claimed as a dependent of the taxpayer?

Correct Answer
verified

Match the statements that relate to each other. -Long-term capital gains

Correct Answer
verified

Under the income tax formula, a taxpayer must choose between deductions for AGI and the standard deduction.

Correct Answer
verified

Correct Answer
verified

Meg, age 23, is a full-time law student and is claimed by her parents as a dependent.During 2017, she received $1,400 interest income from a bank savings account and $6,100 from a part-time job.What is Meg's taxable income for 2017?

Correct Answer
verified
$1,150.Meg's standard deduction is the g...
View Answer

A taxpayer who itemizes must use Form 1040, and cannot use Form 1040EZ or Form 1040A.

Correct Answer
verified

Match the statements that relate to each other. -Nonresident alien

Correct Answer
verified
D

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

Correct Answer
verified

Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live.Crissa, age 22, earns $11,000 during 2017 as a model.Katelyn does not qualify for head of household filing status.

Correct Answer
verified
True

After Ellie moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $1,000.The $1,000 is not income to Ellie.

Correct Answer
verified

Exam 9: Individuals As the Taxpayers

Adjusted gross income (AGI) sets the ceiling or the floor for certain deductions.Explain and illustrate what this statement means.

Correct AnswerverifiedBy a ceiling what is meant is that the d...View AnswerShow Answer

A decrease in a taxpayer's AGI could increase the amount of medical expenses that can be deducted.

Correct AnswerverifiedShow Answer

Derek, age 46, is a surviving spouse.If he has itemized deductions of $12,900 for 2017, Derek should not claim the standard deduction.

Correct AnswerverifiedShow Answer

Because they appear on page 1 of Form 1040, itemized deductions are also referred to as "page 1 deductions."

Correct AnswerverifiedShow Answer

The filing status of a taxpayer (e.g., single, head of household) must be identified before the applicable standard deduction is determined.

Correct AnswerverifiedShow Answer

In 2017, Tom is single and has AGI of $50,000.He is age 70, has no dependents, and has itemized deductions (i.e., from AGI) of $7,000.Determine Tom's taxable income for 2017.

Correct Answerverified$38,050.Tom's standard deduction is $6,3...View AnswerShow Answer

Benjamin, age 16, is claimed as a dependent by his parents.During 2017, he earned $850 at a car wash.Benjamin's standard deduction is $1,400 ($1,050 + $350).

Correct AnswerverifiedShow Answer

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other.Note: Some choices may be used more than once. -Age of a qualifying child

Correct AnswerverifiedD

Correct AnswerverifiedShow Answer

In which, if any, of the following situations may the individual not be claimed as a dependent of the taxpayer?

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. -Long-term capital gains

Correct AnswerverifiedShow Answer

Under the income tax formula, a taxpayer must choose between deductions for AGI and the standard deduction.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Meg, age 23, is a full-time law student and is claimed by her parents as a dependent.During 2017, she received $1,400 interest income from a bank savings account and $6,100 from a part-time job.What is Meg's taxable income for 2017?

Correct Answerverified$1,150.Meg's standard deduction is the g...View AnswerShow Answer

A taxpayer who itemizes must use Form 1040, and cannot use Form 1040EZ or Form 1040A.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. -Nonresident alien

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live.Crissa, age 22, earns $11,000 during 2017 as a model.Katelyn does not qualify for head of household filing status.

Correct AnswerverifiedTrue

After Ellie moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $1,000.The $1,000 is not income to Ellie.

Correct AnswerverifiedShow Answer

Correct Answer
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By a ceiling what is meant is that the d...
View Answer

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$38,050.Tom's standard deduction is $6,3...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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$1,150.Meg's standard deduction is the g...
View Answer

Correct Answer
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D

Correct Answer
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True

Correct Answer
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