Question 1

The basic standard deduction in 2014 for a single taxpayer who is 67 years old and not blind is:
A) $7,400.
B) $6,200.
C) $7,750.
D) $1,550.

Accepted Answer

The basic standard deduction for a single taxpayer who is 67 years old and not blind is $7,750 in 2014, according to the IRS. Option A is incorrect as it is higher than the correct answer. Option B is incorrect as it is the basic standard deduction for a single taxpayer under age 65. Option D is incorrect as it is the additional standard deduction if the taxpayer is single, over 65 years old, and/or blind.

Question 2

Why is the concept of "Adjusted Gross Income (AGI)" important?

Accepted Answer

The answer of Why is the concept of "Adjusted Gross...

Question 3

A qualifying relative must earn less than $______ for the year 2014.
A) 1,000
B) 6,200
C) 9,100
D) 3,950

Accepted Answer

For the year 2014, a qualifying relative must have earned less than $3,950 to be claimed as a dependent for tax purposes.

Question 4

List and describe the five tests that a person must meet to qualify as a qualifying child.

Accepted Answer

The answer of List and describe the five tests that...

Question 5

What qualifications are necessary to file as qualifying widow(er)?

Accepted Answer

The answer of What qualifications are necessary to file as...

Question 6

David and Martha were divorced on December 31,2014.Can they file their 2014 income tax return using married filing jointly? Why or Why not? What other filing status choices do they have,if any?

Accepted Answer

The answer of David and Martha were divorced on December...

Question 7

List and describe the four tests that a person must meet to qualify as a qualifying relative.

Accepted Answer

The answer of List and describe the four tests that...

Question 8

The tax liability for a head of household taxpayer with taxable income of $124,225 is:
A) $25,701.
B) $31,056.
C) $34,783.
D) $25,469.

Accepted Answer

The answer of The tax liability for a head of...

Question 9

What is the limit on the social security amount for 2014?
A) $117,000.
B) $106,800.
C) $113,700.
D) $110,100.

Accepted Answer

The limit on the social security amount for 2014 is $117,000.

Question 10

To be a qualifying child,the taxpayer must meet three general tests and five specific tests.Which one is not part of the three general tests?
A) Joint return test.
B) Citizen or resident test.
C) Dependent taxpayer test.
D) Support test.

Accepted Answer

The three general tests for a qualifying child are the dependent taxpayer test, the joint return test, and the citizen or resident test. The support test is not one of the general tests but is instead one of the five specific tests that must also be met.

Question 11

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.
A) 5%
B) 75%
C) 20%
D) 25%

Accepted Answer

The IRS can impose a penalty of 20% on the tax due on a return where there is negligence. This applies if the taxpayer fails to take reasonable care or makes a mistake resulting in an underpayment of tax. However, if the negligence is deemed gross or intentional, the penalty can be higher.

Question 12

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2014?

Accepted Answer

The answer of How many personal exemptions can the taxpayer...

Question 13

What is the simplest tax return form a taxpayer should file if he or she has only $41,000 in wages and is claiming head of household with a dependent child?

Accepted Answer

The answer of What is the simplest tax return form...

Question 14

A taxpayer can claim a dependency exemption if the person is a qualifying child or a qualifying relative and the person meets three tests.List the three tests this person must meet.

Accepted Answer

The answer of A taxpayer can claim a dependency exemption...

Question 15

The tax liability for a single taxpayer with taxable income of $67,350 is:
A) $12,700.
B) $10,103.
C) $12,861.
D) $12,694.

Accepted Answer

The answer of The tax liability for a single taxpayer...

Question 16

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2014.
1.Leo and Mary who are under 65 and filing a joint return.They have no dependents.
2.Sergio who is single.
3.Peter who is over 65 and single.
4.Anna who is 38 and filing as head of household with a dependent child.
5.Frank who is 45 and blind and is filing as married filing separately.

Accepted Answer

The answer of Determine the amount of the standard deduction...

Question 17

The basic standard deduction in 2014 for a Head of Household taxpayer who is 41 years old and not blind is:
A) $6,200.
B) $8,950.
C) $12,400.
D) $9,100.

Accepted Answer

In 2014, the basic standard deduction for a Head of Household taxpayer who is 41 years old and not blind is $9,100. This is the amount that can be deducted from the taxpayer's adjusted gross income to arrive at their taxable income. Option A ($6,200) is the standard deduction for a Single filer in 2014, Option B ($8,950) is the standard deduction for a Qualifying Widow(er) with dependent child filer in 2014, and Option C ($12,400) is the standard deduction for a Married Filing Jointly filer in 2014.

Question 18

The tax liability for a married couple with taxable income of $141,325 is:
A) $35,331.
B) $27,044.
C) $20,329.
D) $21,199.

Accepted Answer

Using the 2021 married filing joint tax brackets from the IRS, the tax liability for a couple with a taxable income of $141,325 would be calculated as follows:

- $19,900 at 10% = $1,990
- ($81,050 - $19,900) at 12% = $7,068
- ($141,325 - $81,050) at 22% = $13,986

Total tax liability = $22,044, but there is a $4,000 credit for a married couple, bringing the final tax liability to $18,044.

Question 19

Can Erick,who is a full-time student and earns $1,575 working as a clerk,claim an exemption for himself on his tax return? Assume his parents are claiming him as a dependent.

Accepted Answer

The answer of Can Erick,who is a full-time student and...

Question 20

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is part of the four specific tests?
A) Gross income test.
B) Age test.
C) Citizen or resident test.
D) Residency test.

Accepted Answer

The gross income test is considered one of the four specific tests that a taxpayer must meet to qualify a person as a dependent qualifying relative. The other three specific tests are the support test, the relationship test, and the joint return test. The general tests include the dependent taxpayer test, the citizen or resident test, and the joint return test.

Quiz 2: Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

The basic standard deduction in 2014 for a single taxpayer who is 67 years old and not blind is:

Why is the concept of "Adjusted Gross Income (AGI)" important?

A qualifying relative must earn less than $______ for the year 2014.

List and describe the five tests that a person must meet to qualify as a qualifying child.

What qualifications are necessary to file as qualifying widow(er)?

David and Martha were divorced on December 31,2014.Can they file their 2014 income tax return using married filing jointly? Why or Why not? What other filing status choices do they have,if any?

List and describe the four tests that a person must meet to qualify as a qualifying relative.

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

What is the limit on the social security amount for 2014?

To be a qualifying child,the taxpayer must meet three general tests and five specific tests.Which one is not part of the three general tests?

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2014?

What is the simplest tax return form a taxpayer should file if he or she has only $41,000 in wages and is claiming head of household with a dependent child?

A taxpayer can claim a dependency exemption if the person is a qualifying child or a qualifying relative and the person meets three tests.List the three tests this person must meet.

The tax liability for a single taxpayer with taxable income of $67,350 is:

The basic standard deduction in 2014 for a Head of Household taxpayer who is 41 years old and not blind is:

The tax liability for a married couple with taxable income of $141,325 is:

Can Erick,who is a full-time student and earns $1,575 working as a clerk,claim an exemption for himself on his tax return? Assume his parents are claiming him as a dependent.

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is part of the four specific tests?