FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Computing the Tax

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

For the year a spouse dies,the surviving spouse is considered married for the entire year for income tax purposes.

A) True
B) False

Correct Answer

verified

Show Answer

Question 62

True/False

Review LaterAdd Note

Review Later

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

A) True
B) False

Correct Answer

verified

Show Answer

Question 63

Short Answer

Review LaterAdd Note

Match the statements that relate to each other. 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. -Marginal income tax rate

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

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

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

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.

Since an abandoned spouse is treated as not married and has one or more dependent children,he or she qualifies for the standard deduction available to head of household.

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

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

Which,if any,of the following is a correct statement relating to the kiddie tax?

Lucas,age 17 and single,earns $6,000 during 2017.Lucas's parents cannot claim him as a dependent if he does not live with them.

Emily,whose husband died in December 2016,maintains a household in which her dependent mother lives.Which (if any) of the following is her filing status for the tax year 2017? (Note: Emily is the executor of her husband's estate.)

In 2017,Ed is 66 and single.If he has itemized deductions of $7,400,he should not claim the standard deduction alternative.

Regarding dependency exemptions, classify each statement in one of the four categories: a.Could be a qualifying child. b.Could be a qualifying relative. c.Could be either a qualifying child or a qualifying relative. d.Could be neither a qualifying child nor a qualifying relative. -A cousin who does not live with taxpayer.

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.

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

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

Regarding dependency exemptions, classify each statement in one of the four categories: a.Could be a qualifying child. b.Could be a qualifying relative. c.Could be either a qualifying child or a qualifying relative. d.Could be neither a qualifying child nor a qualifying relative. -A family friend who is supported by and lives with the taxpayer.

The Martins have a teenage son who has become an accomplished bagpiper.With proper promotion and scheduling,the son has good income potential by charging for his services at special events (particularly funerals).However,the Martins are fearful that the income could generate a kiddie tax and cause them the loss of a dependency exemption deduction.Are the Martins' concerns justified? Explain.