FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Essay

Review LaterAdd Note

Review Later

Kabuo and Melinda got married on December 15, year 1. Kabuo's salary for the year was $54,000, and Melinda's was $62,000. In addition, Kabuo received $250 of interest income, ($100 of which was from municipal bonds), and Melinda received $10,000 of alimony from a former spouse. If Kabuo and Melinda choose to file jointly, what is their year 1 gross income?

Correct Answer

verified

$126,150, ...

View Answer

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Jan is unmarried and has no children, but she provides all of the financial support for her mother, who lives in an apartment across town. Jan's mother qualifies as Jan's dependent. Which is the most advantageous filing status available to Jan?

A) Single
B) Head of household
C) Qualifying individual
D) Surviving single

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 53

Short Answer

Review LaterAdd Note

Hannah, who is single, received a qualified dividend of $1,000. Hannah's marginal ordinary income tax rate is 28%. What amount of tax must she pay on the $1,000 dividend?

When determining whether a child meets the qualifying child support test for the parents, scholarships earned by the child do not count as self support provided by the child.

What are the couple's taxes due or tax refund (use the tax rate schedules not tax tables)?

Taxpayers are allowed to deduct more for each personal exemption they claim than for each dependency exemption they claim.

Char and Russ Dasrup have one daughter, Siera, who is 16 years old. In November of last year, the Dasrup's took in Siera's 16 year old friend, Angela, who has lived with them ever since. The Dasrup's have not legally adopted Angela but Siera often refers to Angela as "her sister." The Dasrup's provide all of the support for both girls, neither girl receives any income during the year, and both girls live at the Dasrup's residence. Which of the following statements is true regarding the dependency exemptions (and the reason for the exemptions) Char and Russ may claim for the current year for these girls?

Doug and Lisa have determined that their tax liability on their joint return is $3,700. They have made prepayments of $1,000 and also are entitled to child tax credits of $2,000. What is the amount of their tax refund or taxes due?

For AGI deductions are commonly referred to as deductions "above the line."

Which of the following statements regarding tax deductions is false?

Jamison's gross tax liability is $7,000. Jamison had $2,000 of available credits and he had $4,000 of taxes withheld by his employer. What is Jamison's taxes due (or taxes refunded) with his tax return?

Which of the following series of inequalities is generally most accurate?

Bonnie and Ernie file a joint return. Bonnie works and receives income during the year but Ernie does not. If the couple files a joint tax return, Ernie is responsible for paying any taxes due if Bonnie is unable to pay the taxes.

For AGI deductions are commonly referred to as deductions "below the line."

Relative to for AGI deductions, from AGI deductions tend to relate to items that are more personal in nature.

A taxpayer who is claimed as a dependent on another's tax return may not claim any personal or dependency exemptions on his or her tax return.

Michael, Diane, Karen, and Kenny provide support for their mother Janet who is 75 years old. Janet lives by herself in an apartment in Los Angeles. Janet's gross income for the year is $3,000. Janet provides 10% of her own support, Michael provides 40% of Janet's support, Diane provides 8% of Janet's support, Karen provides 10% of Janet's support, and Kenny provides the remaining 32% of Janet's support. Under a multiple support agreement, who may claim a dependency exemption for Janet as a qualifying relative?

A personal automobile is a capital asset.

Greg is single. During 2014, he received $60,000 of salary from his employer. That was his only source of income. He reported $3,000 of for AGI deductions, $7,000 of itemized deductions. The 2014 standard deduction amount of a single taxpayer is $6,200 and the 2014 exemption amount is $3,950. What is Greg's taxable income?

An individual may be considered as a qualifying child of her parents and a qualifying child of her grandparents in the same year.