Exam (elaborations)
THE INDIVIDUAL INCOME TAX RETURN QUIZ QUESTIONS AND ANSWERS
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THE INDIVIDUAL INCOME TAX RETURN QUIZ QUESTIONS AND ANSWERS...
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A corporation is a reporting entity but not a tax-paying entity. -ANSWER False, A corporation is subject to income tax and must report
income annually.
Partnership capital gains and losses are allocated separately to each of
the partners - ANSWER True
Married taxpayers may double their standard deduction amount by filing
separate returns. - ANSWER False, The standard deduction for
married filing jointly is $12,400, and the standard deduction for married
filing separately is $6,200 each.
An item is not included in gross income unless the tax law specifies that
the item is subject to taxation. - ANSWER False, Gross income
includes all income, unless the tax law provides for a specific exclusion.
For taxpayers who do not itemize deductions, the standard deduction
amount is subtracted from the taxpayer's adjusted gross income -
ANSWER True
A taxpayer with a self-employment income of $600 must file a tax return.
- ANSWER True, Net earnings of at least $400 require filing a tax
return.
A dependent child with earned income in excess of the available
standard deduction amount must file a tax return. - ANSWER True, A
single dependent child (under 65) is required to file if unearned income
is over $1,000 OR earned income is over $6,200 (which is the standard
deduction amount) OR if gross income is more than the larger of $1,000
or earned income up to $5,850 + $350.
A single taxpayer, who is not a dependent on another's return, not blind
and under age 65, with income of $8,750 must file a tax return. -
ANSWER False, A single taxpayer, who is not a dependent on
, another's return, not blind and under age 65, with income of at least
$10,150 must file a tax return.
If a taxpayer is due a refund, it will be mailed to the taxpayer regardless
of whether he or she files a tax return. - ANSWER False, Whether or
not a taxpayer is required to file a tax return, the taxpayer must file a
return in order to obtain a refund.
Taxpayers with self-employment income of $400 or more must file a tax
return. - ANSWER True
If your spouse dies during the tax year and you do not remarry, you must
file as single for the year of death - ANSWER False, In the year of one
spouse's death, the spouses are considered married for the full year.
Taxpayers who do not qualify for married, head of household, or
qualifying widow or widower filing status must file as single. - ANSWER
True
If an unmarried taxpayer paid more than half the cost of keeping a home
which is the principal place of residence of a nephew, who is not her
dependent, she may use the head of household filing status. -
ANSWER False, In order to qualify for head of household status, the
nephew must be a dependent.
The maximum official individual income tax rate for 2014 is 39.6 percent,
not including the Medicare surtax on net investment income - ANSWER
True
All taxpayers may use the tax rate schedule to determine their tax
liability - ANSWER False, Taxpayers with taxable income of less than
$100,000 must use the tax tables to determine their tax liability.
The head of household tax rates are higher than the rates for a single
taxpayer. - ANSWER False, Head of household tax rates are lower
than tax rates for single taxpayers.
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