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Exam 9: Individuals As the Taxpayer

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Question 51

Multiple Choice

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Regarding the Tax Tables applicable to the Federal income tax,which of the following statements is correct?

A) For any one year,the Tax Tables are issued by the IRS after the Tax Rate Schedules.
B) The Tax Tables will always yield the same amount of tax as the Tax Rate Schedules.
C) Taxpayers can elect as to whether the use the Tax Tables or the Tax Rate Schedules.
D) The Tax Tables can be used by an estate but not by a trust.
E) No correct answer given.

F) A) and C)
G) A) and B)

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Question 52

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Surviving spouse filing status begins in the year in which the deceased spouse died.

A) True
B) False

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Question 53

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When can a taxpayer not use Form 1040EZ? Form 1040A?

Many taxpayers who previously itemized will start claiming the standard deduction when they purchase a home.

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

Lucas,age 17 and single,earns $6,000 during 2015.Lucas's parents cannot claim him as a dependent if he does not live with them.

DeWayne is a U.S.citizen and resident.He spends much of each year in the United Kingdom on business.He is married to Petula,a U.K.citizen and resident of London.DeWayne has heard that it is possible that he can file a joint income tax return for U.S.purposes.If this is so,what are the constraints he should consider in making any such decision?

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

When the kiddie tax applies,the child need not file an income tax return because the child's income will be reported on the parents' return.

Albert buys his mother a TV.For purposes of meeting the support test,Albert cannot include the cost of the TV.

In January 2015,Jake's wife dies and he does not remarry.For tax year 2015,Jake may not be able to use the filing status available to married persons filing joint returns.

Nelda is married to Chad,who abandoned her in early June of 2015.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 2015 is correct?

Once they reach age 65,many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.

Using borrowed funds from a mortgage on her home,Leah provides 52% of her own support,while her sons furnished the rest.Leah can be claimed as a dependent under a multiple support agreement.

Deductions for AGI are often referred to as "above-the-line" or "page 1" deductions.Explain.

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

In terms of the tax formula applicable to individual taxpayers,which,if any,of the following statements is correct?

Which of the following characteristics correctly describes the procedure for the phaseout of exemptions?

Tony,age 15,is claimed as a dependent by his grandmother.During 2015,Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800.Tony's taxable income is:

The major advantage of being classified as an abandoned spouse is that the taxpayer is treated for tax purposes as being single and not married.This means that an abandoned spouse can use the more favorable tax rates available to single persons than those available to married persons filing separately.Comment on the accuracy of this conclusion.