FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Individuals As the Taxpayer

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

In determining the filing requirement based on gross income received,both additional standard deductions (i.e. ,age and blindness)are taken into account.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

The basic and additional standard deductions both are subject to an annual adjustment for inflation.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

Under the income tax formula,a taxpayer must choose between deductions for AGI and the standard deduction.

Regarding the rules applicable to filing of income tax returns,which,if any,of the following is an incorrect statement:

Wilma,age 70 and single,is claimed as a dependent on her daughter's tax return.During 2015,she had interest income of $2,500 and $800 of earned income from babysitting.Wilma's taxable income is:

In determining whether the gross income test is met for dependency exemption purposes,only the taxable portion of a scholarship is considered.

Meg,age 23,is a full-time law student and is claimed by her parents as a dependent.During 2015,she received $1,400 interest income from a bank savings account and $6,100 from a part-time job.What is Meg's taxable income for 2015?

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%?

In 2015,Tom is single and has AGI of $50,000.He is age 70,has no dependents,and has itemized deductions (i.e. ,from AGI)of $7,000.Determine Tom's taxable income for 2015.

Adjusted gross income (AGI)sets the ceiling or the floor for certain deductions.Explain and illustrate what this statement means.

The Hutters filed a joint return for 2015.They provide more than 50% of the support of Carla,Melvin,and Aaron.Carla (age 18) is a cousin and earns $2,800 from a part-time job.Melvin (age 25) is their son and is a full-time law student.He received from the university a $3,800 scholarship for tuition.Aaron is a brother who is a citizen of Israel but resides in France.Carla and Melvin live with the Hutters.How many personal and dependency exemptions can the Hutters claim on their Federal income tax return?

Roy and Linda were divorced in 2014.The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents.If Roy furnished more than half of their support,he can claim them as dependents in 2015.

Which of the following items,if any,is deductible?

After Ellie moves out of the apartment she had rented as her personal residence,she recovers her damage deposit of $1,000.The $1,000 is not income to Ellie.

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.

A child who has unearned income of $2,100 or less cannot be subject to the kiddie tax.

Sarah furnishes more than 50% of the support of her son and daughter-in-law who live with her.If the son and daughter-in-law file a joint return,Sarah cannot claim them as dependents.

Married taxpayers who file separately cannot later (i.e. ,after the due date for filing)change to a joint return.

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,600 for 2015,they should not claim the standard deduction.

In meeting the criteria of a qualifying child for dependency exemption purposes,when if ever,might the child's income become relevant?