FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Tax Formula and Tax Determination: an Overview of Property Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

For dependents who have income,special filing requirements apply.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

Katelyn is divorced and maintains a household in which she and her daughter,Crissa,live.Crissa,age 22,earns $11,000 during 2012 as a model.Katelyn does qualify for head of household filing status.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

Albert buys his mother a TV.For purposes of meeting the support test,Albert cannot include the cost of the TV.

Deductions for AGI are often referred to as "above-the-line" or "page 1" deductions.Explain.

Contrast the tax consequences resulting from the following filing status situations:

A taxpayer who itemizes must use Form 1040,and cannot use Form 1040EZ or Form 1040A.

In 2012,Pierre had the following transactions: Pierre's AGI is:

Maude's parents live in another state and she cannot claim them as her dependents.If Maude pays their medical expenses,can she derive any tax benefit from doing so? Explain.

Once they reach age 65,many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.

Regarding the tax formula and its relationship to Form 1040,which,if any,of the following statements is correct?

Tony,age 15,is claimed as a dependent by his grandmother.During 2012,Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $700.Tony's taxable income is:

When the kiddie tax applies,the child need not file an income tax return because the child's income will be reported on the parents' return.

After her divorce,Hope continues to support her ex-husband's sister,Cindy,who does not live with her.Hope can claim Cindy as a dependent.

Taylor had the following transactions for 2012: What is Taylor's AGI for 2012?

Derek,age 46,is a surviving spouse.If he has itemized deductions of $12,100 for 2012,Derek should not claim the standard deduction.

Kyle and Liza are married and under 65 years of age.During 2012,they furnish more than half of the support of their 19-year old daughter,May,who lives with them.She graduated from high school in May 2011.May earns $15,000 from a part-time job,most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father,who died on January 3,2012,at age 90,has for many years qualified as their dependent.How many personal and dependency exemptions should Kyle and Liza claim?

Ethan had the following transactions during 2012: What is Ethan's AGI for 2012?

Sylvia,age 17,is claimed by her parents as a dependent.During 2012,she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Sylvia's taxable income is:

In order to claim a dependency exemption for other than a qualifying child,a taxpayer must meet the support test.Generally,this is done by furnishing more than 50% of a dependent's support.What exceptions exist,if any,where the support furnished need not be more than 50%?

During 2012,Jackson had the following capital gains and losses: