Question 1

Miguel, a widower whose wife died in Year 1, maintains a household for himself and his daughter, who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in Year 3?

Accepted Answer

A)  Single.
B)  Qualifying widower.
C)  Head of household.
D)  Married filing separately.E) B) and C)
F) A) and D)

Question 2

The standard deduction amount varies by filing status.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about a qualifying person for head of household filing status is true?

Accepted Answer

A)  One individual (who is a qualifying person) may qualify more than one taxpayer for head of household filing status.
B)  The taxpayer is required to live with a qualifying person for the entire year in order to qualify for head of household filing status.
C)  A taxpayer's parent cannot be a qualifying person for purposes of determining head of household filing status.
D)  A qualifying person must have a family relationship with the taxpayer in order for the qualifying person to qualify the taxpayer for head of household filing status.E) All of the above
F) C) and D)

Question 4

In addition to the individual income tax, individuals may be required to pay taxes imposed on tax bases other than the individual's regular taxable income.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true?

Accepted Answer

A)  Income character determines the tax year in which the income is taxed.
B)  Income character depends on the taxpayer's filing status.
C)  Qualified dividend income is taxed at a lower rate than an equal amount of ordinary income.
D)  A taxpayer selling a capital asset at a gain recognizes ordinary income.E) A) and B)
F) All of the above

Question 6

If no one qualifies as the dependent of an unmarried taxpayer, the unmarried taxpayer may still be able to qualify for the head of household filing status.

Accepted Answer

A) True 
 B)False

Question 7

For filing status purposes, the taxpayer's marital status is determined at what point during the year?

Accepted Answer

A)  the beginning of the year
B)  the end of the year
C)  the middle of the year
D)  None of the choices are correct.E) A) and D)
F) B) and C)

Question 8

All of the following are for AGI deductions except:

Accepted Answer

A)  Contributions to qualified retirement accounts.
B)  Rental and royalty expenses.
C)  Business expenses for a self-employed taxpayer.
D)  Charitable contributions.E) A) and B)
F) A) and D)

Question 9

Taxpayers who file as qualifying widows/widowers use a different tax rate schedule than taxpayers who are married filing jointly for tax purposes.

Accepted Answer

A) True 
 B)False

Question 10

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?

Accepted Answer

A)  Single.
B)  Head of household.
C)  Qualifying individual.
D)  Surviving single.E) A) and D)
F) A) and C)

Question 11

In June of Year 1, Eric's wife, Savannah, died.Eric did not remarry during Year 1, Year 2, or Year 3.Eric maintains the household for his dependent daughter, Catherine, in Year 1, Year 2, and Year 3.Which is the most advantageous filing status for Eric in Year 2?

Accepted Answer

A)  Head of household.
B)  Qualifying widower.
C)  Single.
D)  Married filing separately.E) A) and C)
F) B) and C)

Question 12

If a taxpayer does not provide more than half the support of a child, that child cannot qualify as the taxpayer's qualifying child.

Accepted Answer

A) True 
 B)False

Question 13

Anna is a 21-year-old full-time college student (she plans on returning home at the end of the school year) .Her total support for the year was $34,000 (including $8,000 of tuition) .Anna covered $12,000 of her support costs out of her own pocket (from savings, she did not work) and she received an $8,000 scholarship that covered all of her tuition costs.Which of the following statements regarding who is allowed to claim Anna as an exemption is true?

Accepted Answer

A)  Even if Anna's parents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) , they would not be able to claim her as a dependent.
B)  Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) , they would not be able to claim her as a dependent.
C)  Because she provided more than half her own support, Anna would not qualify as her parents' dependent.
D)  None of these statements are true.E) B) and C)
F) A) and D)

Question 14

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Accepted Answer

A)  The relationship requirement is more broadly defined (more inclusive) for qualifying relatives than for qualifying children.
B)  Qualifying children are subject to age restrictions while qualifying relatives are not.
C)  The support test for qualifying relatives focuses on the support the potential dependent self-provides while the support test for qualifying children focuses on the support the taxpayer provides.
D)  Qualifying relatives are subject to a gross income restriction while qualifying children are not.E) B) and C)
F) A) and D)

Question 15

In June of Year 1, Edgar's wife, Cathy, died, and Edgar did not remarry during the year.What is his filing status for Year 1 (assuming they did not have any dependents) ?

Accepted Answer

A)  Married filing jointly.
B)  Single.
C)  Qualifying widower.
D)  Head of household.E) A) and C)
F) B) and C)

Question 16

Which of the following statements regarding for AGI tax deductions is true?

Accepted Answer

A)  Taxpayers subtract for AGI deductions from gross income to determine AGI.
B)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's standard deduction amount.
C)  The deduction for qualified business income is a for AGI deduction.
D)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's itemized deductions.E) B) and C)
F) B) and D)

Question 17

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

Accepted Answer

A) True 
 B)False

Question 18

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

Accepted Answer

A) True 
 B)False

Question 19

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 are Jamison's taxes due (or taxes refunded) with his tax return?

Accepted Answer

A)  $5,000 taxes due.
B)  $1,000 taxes due.
C)  $1,000 tax refund.
D)  $3,000 taxes due.E) A) and B)
F) A) and D)

Question 20

Qualified dividends are taxed at the same rate as ordinary income.

Accepted Answer

A) True 
 B)False

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

In addition to the individual income tax, individuals may be required to pay taxes imposed on tax bases other than the individual's regular taxable income.

Correct Answer
verified

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 are Jamison's taxes due (or taxes refunded) with his tax return?

Correct Answer
verified

For filing status purposes, the taxpayer's marital status is determined at what point during the year?

Correct Answer
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Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Correct Answer
verified

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

Correct Answer
verified

Which of the following statements about a qualifying person for head of household filing status is true?

Correct Answer
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Which of the following statements is true?

Correct Answer
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If a taxpayer does not provide more than half the support of a child, that child cannot qualify as the taxpayer's qualifying child.

Correct Answer
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Correct Answer
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In June of Year 1, Edgar's wife, Cathy, died, and Edgar did not remarry during the year.What is his filing status for Year 1 (assuming they did not have any dependents) ?

Correct Answer
verified

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?

Correct Answer
verified

All of the following are for AGI deductions except:

Correct Answer
verified

The standard deduction amount varies by filing status.

Correct Answer
verified

Taxpayers who file as qualifying widows/widowers use a different tax rate schedule than taxpayers who are married filing jointly for tax purposes.

Correct Answer
verified

Miguel, a widower whose wife died in Year 1, maintains a household for himself and his daughter, who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in Year 3?

Correct Answer
verified

Which of the following statements regarding for AGI tax deductions is true?

Correct Answer
verified

In June of Year 1, Eric's wife, Savannah, died.Eric did not remarry during Year 1, Year 2, or Year 3.Eric maintains the household for his dependent daughter, Catherine, in Year 1, Year 2, and Year 3.Which is the most advantageous filing status for Eric in Year 2?

Correct Answer
verified

Qualified dividends are taxed at the same rate as ordinary income.

Correct Answer
verified

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

Correct Answer
verified

If no one qualifies as the dependent of an unmarried taxpayer, the unmarried taxpayer may still be able to qualify for the head of household filing status.

Correct Answer
verified

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

In addition to the individual income tax, individuals may be required to pay taxes imposed on tax bases other than the individual's regular taxable income.

Correct AnswerverifiedShow Answer

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 are Jamison's taxes due (or taxes refunded) with his tax return?

Correct AnswerverifiedShow Answer

For filing status purposes, the taxpayer's marital status is determined at what point during the year?

Correct AnswerverifiedShow Answer

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Correct AnswerverifiedShow Answer

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

Correct AnswerverifiedShow Answer

Which of the following statements about a qualifying person for head of household filing status is true?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

If a taxpayer does not provide more than half the support of a child, that child cannot qualify as the taxpayer's qualifying child.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In June of Year 1, Edgar's wife, Cathy, died, and Edgar did not remarry during the year.What is his filing status for Year 1 (assuming they did not have any dependents) ?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

All of the following are for AGI deductions except:

Correct AnswerverifiedShow Answer

The standard deduction amount varies by filing status.

Correct AnswerverifiedShow Answer

Taxpayers who file as qualifying widows/widowers use a different tax rate schedule than taxpayers who are married filing jointly for tax purposes.

Correct AnswerverifiedShow Answer

Miguel, a widower whose wife died in Year 1, maintains a household for himself and his daughter, who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in Year 3?

Correct AnswerverifiedShow Answer

Which of the following statements regarding for AGI tax deductions is true?

Correct AnswerverifiedShow Answer

In June of Year 1, Eric's wife, Savannah, died.Eric did not remarry during Year 1, Year 2, or Year 3.Eric maintains the household for his dependent daughter, Catherine, in Year 1, Year 2, and Year 3.Which is the most advantageous filing status for Eric in Year 2?

Correct AnswerverifiedShow Answer

Qualified dividends are taxed at the same rate as ordinary income.

Correct AnswerverifiedShow Answer

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

Correct AnswerverifiedShow Answer

If no one qualifies as the dependent of an unmarried taxpayer, the unmarried taxpayer may still be able to qualify for the head of household filing status.

Correct AnswerverifiedShow Answer

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