2022 TAX 1 Comprehensive Module 1 Final Exam
Comprehensive Module 1: Final Exam
1. Bob uses the cash method of accounting. During the tax year (calendar year), he had the following income and expenses:
• Interest on a savings account (credited to his account on January 2 of next year)...
Comprehensive Module 1: Final Exam
1. Bob uses the cash method of accounting. During the tax year (calendar year),
he had the following income and expenses:
Interest on a savings account (credited to his
$
account on January 2 of next year)
68
Dividend received from Virginia Credit Union $814
Interest received on a 5-year certificate of deposit $91
(left in CD account to compound) 0
Penalty on the early withdrawal of the 5-year
certificate of deposit $
50
What is the amount of interest income Bob must report for the current tax year?
a) $1,792
b) $ 910
c)
$1,724
d) $1,674
2. The Smiths are married and have filed jointly in prior years. On July 29th of the
current tax year, the Smiths separated and filed for divorce. Mrs. Smith has
decided to file separately this year. Which of the following statements is true?
a) The taxpayers must be living apart from their spouse to file Married Filing
Separately.
b) The taxpayers must be living together as of December 31 to file Married Filing
Separately.
c) A married taxpayer can file Married Filing Separately if living together or apart.
d) The taxpayers must have lived apart from their spouse for the last six months
of the year.
3. Mark and Julie, married, with no dependents, have filed a joint return in previous
years. Julie died in March 2018. Which filing status would be most beneficial for
Mark in tax year 2018?
a) Single
b) Married Filing Jointly
c) Head of Household
d) Qualifying Widow(er) with Dependent Child
4. Which of the following pieces of information is shown/found on Form W2?
a) The taxpayer’s filing status, wages, tips, and other compensation.
b) The taxpayer’s wages, tips, and other compensation
c) The taxpayer’s refund and amount of tax withheld.
d) The taxpayer’s unreported tips along with the taxpayer’s reported tips
,5. Dani is a 25-year old full-time graduate student. Following are the tax-related
facts we know about Dani.
Beginning in tax year 2018, Dani is no longer a dependent on her parent’s
tax return.
Dani was laid off at her job on October 15th and received a Form W-2 for
earnings from January through October.
Dani received unemployment income from October 15th through
December 31st after being laid off from her job.
Dani paid for her graduate school education in the current tax year and
is eligible for a nonrefundable tax credit.
Which Schedule(s) must Dani complete in addition to Form 1040?
a) Schedules 1 and 3
b) Schedules 1 and 2
c) Schedule 6
d) Schedules 3 and 5
6. Which of the following statements is most accurate as related to the
requirements of a paid tax preparer?.
a) A paid preparer must sign the taxpayer’s tax return and provide their SSN on
b) the return. The paid preparer must sign the taxpayer’s tax return and provide
their PTIN on the tax return.
c) A paid preparer must sign the taxpayer’s tax return, provide their SSN and
PTIN on the tax return.
d) A paid prepaprer must provide their PTIN on a taxpayer’s tax return.
7. Don, age 18, is being claimed as a dependent on his parent’s tax return. Which of
the following would require Don to file a tax return?
a) Don is married and has earned income totaling $12,000. Don also has
unearned income totaling $295.
b) Don is single and has earned income totaling $12,000.
c) Don’s only source of income was unearned interest income totaling $1,000.
d) Don has unearned interest income totaling $1,000 and earnings totaling
$11,000 from a part-time job.
8. Henry and Jane are married and file jointly. Jane’s birthday is 12/31/1953 and
Henry’s birthday is 1/1/1954. What is their filing requirement for 2018?
a) $24,000
b) $25,300
c) $26,600
d) $28,500
9. Mary’s husband, Bob, died March 12, 2018. She married Richard on December
15, 2018. What will Bob’s filing status be?
a) Single
b) Married Filing Jointly
c) Married Filing Separately
d) Head of Household
, 10. Bob died March 12, 2017, leaving Mary with a two-year-old son. If Mary does not
remarry, what is the most beneficial filing status Mary could use for the tax year
2018?
a) Married Filing Jointly
b) Married Filing Separately
c) Head of Household
d) Qualifying Widow(er) with Dependent Child
11. Bob died March 12, 2015, leaving Mary with a two-year-old son. In the tax year
2018, Mary has not remarried, what would be the most beneficial filing status
Mary could use?
a) Single
b) Married Filing Jointly
c) Qualifying Widow(er) with Dependent Child
d) Head of Household
12. Mr. and Mrs. Collins were having marital problems and temporarily separated in
May 2018. Their two young children live with Mrs. Collins. They don’t want to file
a joint return. When would a taxpayer be considered unmarried and able to file as
Head of Household?
a) The taxpayer is married and living with his spouse as husband and wife.
b) The taxpayer is living with his spouse in a common-law marriage that is
recognized in the state where he now lives, or in the state where the
common-law marriage began.
c) The taxpayer is married and living apart from his spouse in August, but
not legally separated under a decree of divorce or separate maintenance.
d) The spouse did not live in the home at all during the last six months of the
year, has a qualifying child, and is otherwise eligible to file as Head of
Household.
13. Which scenario can use Form 1040 with no Schedules attached?
a) Married taxpayers with W-2 income and capital gains from stock sales.
b) A single teacher who deducts educator expenses.
c) A married couple with interest and dividends totaling less than $1,500, two
dependents, with childcare expenses.
d) A single taxpayer with distributions from an IRA retirement plan, Social
Security income, and interest income.
14. Mr. Simpson died on September 26, 2018. Mr. Simpson failed to file tax returns
for tax years 2016 and 2017. The Simpsons divorced in 2016. Mrs. Simpson filed
her tax return using the Married Filing Separate filing status. Who is responsible
for filing Mr. Simpson’s final returns?
a) His mother must file all returns.
b) His attorney must file all returns.
c) His administrator must file all returns.
d) His ex-wife must file the 2016 tax return, and the administrator must file the
2017 and 2018 tax returns.
15. Allen, a fiscal year taxpayer, is trying to determine the final date for submitting
his tax return. His fiscal year begins on April 1 and ends on March 31. Which of
the following would be Allen’s due date for filing his tax return?
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