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Exam 9: Individuals As the Taxpayer

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Question 31

Multiple Choice

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Which of the following, if any, is a deduction for AGI?

A) State and local sales taxes.
B) Interest on home mortgage.
C) Charitable contributions.
D) Unreimbursed moving expenses of an employee (not in the military) .
E) None of these.

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

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Question 32

True/False

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

A) True
B) False

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Question 33

Multiple Choice

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Jeremy is married to Amy, who abandoned him in 2018.He has not seen or communicated with her since April of that year.He maintains a household in which their son, Evan, lives.Evan is age 25 and earns over $6,000 each year.For tax year 2019, Jeremy's filing status is:

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

Katrina, age 16, is claimed as a dependent by her parents.During 2019, she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,950 ($5,600 earned income + $350).

Certain high-income individuals are subject to three additional Medicare taxes on wages, unearned income, and tax credits claimed.

In 2019, Nai-Yu had the following transactions: Nai-Yu's AGI is:

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

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

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.

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

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

As opposed to itemizing deductions from AGI, the majority of individual taxpayers choose the standard deduction.

The deduction for personal and dependency exemptions has been suspended from 2018 through 2025.

Buddy and Hazel are ages 72 and 71, respectively, and file a joint return.If they have itemized deductions of $25,100 for 2019, they should not claim the standard deduction.

Match the statements that relate to each other.Note: Choice k.may be used more than once. 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 37%. i.Applicable rate could be as low as 0%. j.Maximum rate is 28%. k.No correct match provided. -Relationship test (for dependency exemption purposes)

In any given year, that year's Tax Tables are released by the IRS before the Tax Rate Schedules for that year.

Ed is divorced and maintains a home in which he and a dependent friend live.Ed does not qualify for head of household filing status.

Match the statements that relate to each other.Note: Choice k.may be used more than once. 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 37%. i.Applicable rate could be as low as 0%. j.Maximum rate is 28%. k.No correct match provided. -Average income tax rate

In determining the filing requirement based on gross income received, both additional standard deductions (i.e., age and blindness) are taken into account.