Question 1

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

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The answer of Mel is not quite sure whether an...

Question 2

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

Accepted Answer

The answer of Adjusted gross income (AGI) sets the ceiling...

Question 3

Contrast the tax consequences resulting from the following filing status situations:
a.​Married filing jointly versus married filing separately.
b.​Married filing separately versus single.
c.Married filing separately versus abandoned spouse status.

Accepted Answer

The answer of Contrast the tax consequences resulting from the...

Question 4

When filing their Federal income tax returns,the Youngs always claimed the standard deduction.After they purchased a home,however,they started to itemize their deductions from AGI.
a.Explain the reason for the change.
b.​Suppose they purchased the home in November 2016, but did not start itemizing until tax year 2017. Why the delay as to itemizing?

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The answer of When filing their Federal income tax returns,the...

Question 5

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes.
a.​If the Harpers file a joint return for 2017, can they later switch to separate returns for 2017?
b.If the Harpers file separate returns for 2017, can they later switch to a joint return for 2017?

Accepted Answer

The answer of Jayden and Chloe Harper are husband and...

Question 6

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 2017?

Accepted Answer

The answer of Lena is 66 years of age,single,and blind...

Question 7

Mr.Lee is a citizen and resident of Hong Kong,while Mr.Anderson is a citizen and resident of the U.S.In the taxation of income,Hong Kong uses a territorial approach,while the U.S.follows the global system.In terms of effect,explain what this means to Mr.Lee and Mr.Anderson.

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The answer of Mr.Lee is a citizen and resident of...

Question 8

In applying the gross income test in the case of dependents that are married,could the application of community property laws have any effect? Explain.

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Question 9

In satisfying the support test and the gross income test for claiming a dependency exemption,a scholarship received by the person being claimed is handled the same way for each test.Do you agree or disagree with this statement? Why?

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The answer of In satisfying the support test and the...

Question 10

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

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The answer of In meeting the criteria of a qualifying...

Question 11

During 2017,Madison had salary income of $80,000 and the following capital transactions:
​
  
How are these transactions handled for income tax purposes?

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The answer of During 2017,Madison had salary income of $80,000...

Question 12

The Deweys are expecting to save on their taxes for 2017.Not only have both incurred large medical expenses,but both reached age 65.During the year,they also recognized a $30,000 loss on some land they sold which was purchased as an investment several years ago.Are the Deweys under a mistaken understanding regarding their tax position? Explain.

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The answer of The Deweys are expecting to save on...

Question 13

The Dargers have itemized deductions that exceed the standard deduction.However,when they file their joint return,they choose the standard deduction option.
a.Is this proper procedure?
b.​Aside from a possible misunderstanding as to the tax law, what might be the reason for the Darger's choice?

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The answer of The Dargers have itemized deductions that exceed...

Question 14

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

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Question 15

During 2017,Jackson had the following capital gains and losses:
​
  
a.How much is Jackson's tax liability if he is in the 15% tax bracket?
b.If his tax bracket is 33% (not 15%)?

Accepted Answer

The answer of During 2017,Jackson had the following capital gains...

Question 16

During the current year,Doris received a large gift from her parents and a sizeable inheritance from an uncle.She also paid premiums on an insurance policy on her life.Doris is confused because she cannot find any place on Form 1040 to report these items.Explain.

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The answer of During the current year,Doris received a large...

Question 17

In resolving qualified child status for dependency exemption purposes,why are tiebreaker rules necessary? Can these rules be waived?

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The answer of In resolving qualified child status for dependency...

Question 18

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

Accepted Answer

The answer of Under what circumstances,if any,may an ex-spouse be...

Question 19

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%?

Accepted Answer

The answer of In order to claim a dependency exemption...

Question 20

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

Accepted Answer

The answer of When can a taxpayer not use Form...

Quiz 3: Computing the Tax

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

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

Contrast the tax consequences resulting from the following filing status situations: a.Married filing jointly versus married filing separately. b.Married filing separately versus single. c.Married filing separately versus abandoned spouse status.

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes. a.If the Harpers file a joint return for 2017, can they later switch to separate returns for 2017? b.If the Harpers file separate returns for 2017, can they later switch to a joint return for 2017?

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 2017?

Mr.Lee is a citizen and resident of Hong Kong,while Mr.Anderson is a citizen and resident of the U.S.In the taxation of income,Hong Kong uses a territorial approach,while the U.S.follows the global system.In terms of effect,explain what this means to Mr.Lee and Mr.Anderson.

In applying the gross income test in the case of dependents that are married,could the application of community property laws have any effect? Explain.

In satisfying the support test and the gross income test for claiming a dependency exemption,a scholarship received by the person being claimed is handled the same way for each test.Do you agree or disagree with this statement? Why?

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

During 2017,Madison had salary income of $80,000 and the following capital transactions: How are these transactions handled for income tax purposes?

The Dargers have itemized deductions that exceed the standard deduction.However,when they file their joint return,they choose the standard deduction option. a.Is this proper procedure? b.Aside from a possible misunderstanding as to the tax law, what might be the reason for the Darger's choice?

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

During 2017,Jackson had the following capital gains and losses: a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)?

During the current year,Doris received a large gift from her parents and a sizeable inheritance from an uncle.She also paid premiums on an insurance policy on her life.Doris is confused because she cannot find any place on Form 1040 to report these items.Explain.

In resolving qualified child status for dependency exemption purposes,why are tiebreaker rules necessary? Can these rules be waived?

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

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%?

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

Quiz 3: Computing the Tax

Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

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

Contrast the tax consequences resulting from the following filing status situations: a.​Married filing jointly versus married filing separately. b.​Married filing separately versus single. c.Married filing separately versus abandoned spouse status.

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes. a.​If the Harpers file a joint return for 2017, can they later switch to separate returns for 2017? b.If the Harpers file separate returns for 2017, can they later switch to a joint return for 2017?

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 2017?

Mr.Lee is a citizen and resident of Hong Kong,while Mr.Anderson is a citizen and resident of the U.S.In the taxation of income,Hong Kong uses a territorial approach,while the U.S.follows the global system.In terms of effect,explain what this means to Mr.Lee and Mr.Anderson.

In applying the gross income test in the case of dependents that are married,could the application of community property laws have any effect? Explain.

In satisfying the support test and the gross income test for claiming a dependency exemption,a scholarship received by the person being claimed is handled the same way for each test.Do you agree or disagree with this statement? Why?

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

During 2017,Madison had salary income of $80,000 and the following capital transactions: ​ How are these transactions handled for income tax purposes?

The Dargers have itemized deductions that exceed the standard deduction.However,when they file their joint return,they choose the standard deduction option. a.Is this proper procedure? b.​Aside from a possible misunderstanding as to the tax law, what might be the reason for the Darger's choice?

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

During 2017,Jackson had the following capital gains and losses: ​ a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)?

During the current year,Doris received a large gift from her parents and a sizeable inheritance from an uncle.She also paid premiums on an insurance policy on her life.Doris is confused because she cannot find any place on Form 1040 to report these items.Explain.

In resolving qualified child status for dependency exemption purposes,why are tiebreaker rules necessary? Can these rules be waived?

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

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%?

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

Contrast the tax consequences resulting from the following filing status situations: a.Married filing jointly versus married filing separately. b.Married filing separately versus single. c.Married filing separately versus abandoned spouse status.

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes. a.If the Harpers file a joint return for 2017, can they later switch to separate returns for 2017? b.If the Harpers file separate returns for 2017, can they later switch to a joint return for 2017?

During 2017,Madison had salary income of $80,000 and the following capital transactions: How are these transactions handled for income tax purposes?

The Dargers have itemized deductions that exceed the standard deduction.However,when they file their joint return,they choose the standard deduction option. a.Is this proper procedure? b.Aside from a possible misunderstanding as to the tax law, what might be the reason for the Darger's choice?

During 2017,Jackson had the following capital gains and losses: a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)?