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

Essay

Review LaterAdd Note

Review Later

When can a taxpayer not use Form 1040EZ? Form 1040A?

Correct Answer

verified

Form 1040EZ cannot be used when the taxp...

View Answer

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,000 for 2012,they should not claim the standard deduction.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Essay

Review LaterAdd Note

Match the statements that relate to each other.Note: Choice L may be used more than once.

A qualifying child cannot include:

Under what circumstances,if any,may an ex-spouse be claimed as a dependent?

During 2012,Jen (age 66) furnished more than 50% of the support of the following persons: Presuming all other dependency tests are met,on a separate return how many personal and dependency exemptions may Jen claim?

During the year,Kim sold the following assets: business auto for a $1,000 loss,stock investment for a $1,000 loss,and pleasure yacht for a $1,000 loss.Presuming adequate income,how much of these losses may Kim claim?

As opposed to itemizing deductions from AGI,the majority of individual taxpayers choose the standard deduction.

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

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

List at least three exceptions to the application of the kiddie tax.

Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2012,she received $4,800 in Social Security benefits,$2,200 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:

Regarding head of household filing status,comment on the following:

For 2012,Jackson has taxable income of $30,005.When he uses the Tax Tables,Jackson finds that his tax liability is higher than under the Tax Rate Schedules.

Evan and Eileen Carter are husband and wife and file a joint return for 2012.Both are under 65 years of age.They provide more than half of the support of their daughter,Pamela (age 25) ,who is a full-time medical student.Pamela receives a $5,000 scholarship covering her tuition at college.They furnish all of the support of Belinda (Evan's grandmother) ,who is age 80 and lives in a nursing home.They also support Peggy (age 66) ,who is a friend of the family and lives with them.How many dependency exemptions may the Carters claim?

Lena is 66 years of age,single,and blind and is not claimed as a dependent.How much gross income must she have before she is required to file a Federal income tax return for 2012?

Married taxpayers who file a joint return cannot later (i.e.,after the filing due date)switch to separate returns for that year.

Gain on the sale of collectibles held for more than 12 months could be subject to tax at a rate lower than 28%.

All exclusions from gross income are reported on Form 1040.

For the qualifying relative category (for dependency exemption purposes) :