Exam (elaborations)
THE INDIVIDUAL INCOME TAX RETURN QUIZ QUESTIONS AND ANSWERS
- Course
- Institution
THE INDIVIDUAL INCOME TAX RETURN QUIZ QUESTIONS AND ANSWERS...
[Show more]
Content preview
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.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Boostertips. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now