Question 1

The failure to file penalty is ________ of the tax shown on the return for each month or fraction of a month)the tax return is not filed,up to a maximum of 25%.
A)5)5%
B)5)0%
C)0)25%
D)0)5%

Accepted Answer

The answer of The failure to file penalty is ________...

Question 2

Which condition listed below is not required for a taxpayer to qualify as a qualifying widower)with dependent child?
A)The household was the principal place of abode for the entire year of both the taxpayer and his or her child.
B)Taxpayer paid more than half the cost of keeping up a household.
C)Taxpayer was eligible to file a joint return in the year the spouse died.
D)Taxpayer must remarry before the end of the tax year in question.

Accepted Answer

The condition that the taxpayer must remarry before the end of the tax year in question is not required for a taxpayer to qualify as a qualifying widower with dependent child. The other conditions listed are required for a taxpayer to qualify.

Question 3

A single taxpayer is 35 years old and has only wages of $16,000.Which is the simplest form this person can file?
A)1040A.
B)1040EZ.
C)1040.
D)1040ES.

Accepted Answer

The taxpayer's income is below $100,000 and consists of only wages, making them eligible to file using the 1040EZ form.

Question 4

When a taxpayer can be claimed as a dependent on the tax return of another individual,the basic standard deduction for the taxpayer is limited to the greater of a),or b)the taxpayer's earned income plus $350,but not more than the amount of the basic standard deduction.
A)$1,050
B)$1,000
C)$350
D)$950

Accepted Answer

The basic standard deduction for a taxpayer who can be claimed as a dependent is limited to the greater of $1,050 or the taxpayer's earned income plus $350, but not more than the regular standard deduction amount.

Question 5

The taxpayer's spouse died at the beginning of 2016.He has no qualifying child.Which status should the taxpayer select when filing his tax return?
A)Qualifying Widower).
B)Married Filing Separately.
C)Single.
D)Married Filing Jointly.

Accepted Answer

The answer of The taxpayer's spouse died at the beginning...

Question 6

What is the amount of the tax liability for a single person having taxable income of $59,200? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tablesor Tax Rate Schedules.
A)$10,656.
B)$10,578.
C)$14,800.
D)$9,300.

Accepted Answer

Using the S1U1P1TaxS1S1P0S1U1P1 table, we can find that the tax rate for a taxable income of $59,200 is 22%, which translates to a tax liability of $10,578.

Question 7

What is the amount of the tax liability for a qualifying widower)with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.
A)$21,943.
B)$30,400.
C)$27,665.
D)$25,234.

Accepted Answer

The answer of What is the amount of the tax...

Question 8

The interest charged by the IRS for the first three months of 2016 was:
A)3%.
B)4%.
C)6%.
D)5%.

Accepted Answer

The interest rate charged by the IRS for the first three months of 2016 was 3%.

Question 9

John forgot to file his tax return by April 15.He did not file an extension.John finally filed his tax return on June 30 and had a remaining tax liability of $1,500.What is John's failure to file penalty? Assume he made all his payments on time.
A)$300.
B)$225.
C)$233.
D)$375.

Accepted Answer

The answer of John forgot to file his tax return...

Question 10

What is the amount of the tax liability for a qualifying widower)with a dependent child and having taxable income of $18,355? All answers should be rounded to the nearest dollar. Use the appropriate ^Tax^Tablesor ^Tax^Rate^Schedules. A)$2,331. B)$1,838. C)$2,753. D)$1,836.

Accepted Answer

For a qualifying widower with a dependent child, the tax liability for a taxable income of $18,355 is calculated using the tax tables or rate schedules for that filing status, resulting in a tax liability of $1,838.

Question 11

Failure to make required estimated payments will subject the taxpayer to a potential underpayment penalty plus interest.However,if the difference between the tax shown on the return and the amount of tax withheld for wages is less than ________,the taxpayer will not be assessed a penalty.
A)$850
B)$500
C)$1,000
D)$1,250

Accepted Answer

The IRS does not impose an underpayment penalty if the difference between the tax shown on the return and the amount of tax withheld is less than $1,000.

Question 12

What is the amount of the tax liability for a married couple having taxable income of $153,500? All answers should be rounded to the nearest dollar.
A)$30,233.
B)$29,966.
C)$38,375.
D)$30,032.

Accepted Answer

The tax liability for a married couple with a taxable income of $153,500 is calculated using the IRS tax brackets for the relevant year. Based on the 2023 tax brackets, the correct tax liability is $29,966.

Question 13

The early withdrawal penalty is a for AGI deduction.Which form can the taxpayer use to claim this benefit?
A)1040.
B)1040A.
C)1040EZ.
D)1040A or 1040.

Accepted Answer

The early withdrawal penalty is an adjustment to income, which is claimed on Form 1040. Form 1040A and 1040EZ do not allow for adjustments to income.

Question 14

What is the amount of the social security wage limitation for 2016?
A)$118,500.
B)$117,000.
C)$110,100.
D)$106,800.

Accepted Answer

The Social Security wage limitation for 2016 is $118,500. Therefore, the correct choice is A.

Question 15

Criminal penalties only apply to:
A)Willful failure to file a return and tax evasion.
B)Careless disregard for tax authority.
C)Willful failure to file a return.
D)Tax evasion.

Accepted Answer

Criminal penalties only apply to willful failure to file a return and tax evasion. Careless disregard for tax authority and willful failure to file a return may result in civil penalties but not criminal penalties.

Question 16

Luisa's parents can claim her as a dependent on their tax return.In 2016,her only source of income was a part-time job as a medical clerk where she earned $2,600 during the year.What is Luisa's standard deduction?
A)$4,050.
B)$1,050.
C)$2,950.
D)$2,600.

Accepted Answer

For a dependent, the standard deduction is the greater of $1,050 or earned income plus $350, up to the standard deduction for a single filer. Luisa's earned income is $2,600, so her standard deduction is $2,600 + $350 = $2,950.

Question 17

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?
A)1040A.
B)1040EZ.
C)1040.
D)1040ES.

Accepted Answer

The answer of A 37- year-old taxpayer with a dependent...

Question 18

Ed's parents can claim him as a dependent on their tax return.In 2016,his only source of income was $1,050 of interest income received from Global Bank.What is Ed's standard deduction?
A)$1,050.
B)$1,000.
C)$350.
D)$4,050.

Accepted Answer

For a dependent, the standard deduction is the greater of $1,050 or earned income plus $350, but not more than the regular standard deduction for a single filer. Since Ed's only income is $1,050 of interest, his standard deduction is $1,050.

Question 19

The IRS can impose a ________ penalty on any portion of understatement of tax that is attributable to fraud.
A)25%
B)5%
C)75%
D)50%

Accepted Answer

The IRS can impose a penalty of up to 75% on any portion of understatement of tax that is attributable to fraud. This is a severe penalty meant to deter individuals from intentionally evading taxes.

Question 20

What is the amount of the tax liability for a head of household person having taxable income of $87,573? All answers should be rounded to the nearest dollar. Use the appropriate ^Tax^Tablesor ^Tax^Rate^Schedules. A)$16,398 B)$16,179. C)$16,306. D)$16,191.

Accepted Answer

The answer of What is the amount of the tax...

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

The failure to file penalty is ________ of the tax shown on the return for each month or fraction of a month) the tax return is not filed,up to a maximum of 25%.

Which condition listed below is not required for a taxpayer to qualify as a qualifying widower) with dependent child?

A single taxpayer is 35 years old and has only wages of $16,000.Which is the simplest form this person can file?

When a taxpayer can be claimed as a dependent on the tax return of another individual,the basic standard deduction for the taxpayer is limited to the greater of a) ,or b) the taxpayer's earned income plus $350,but not more than the amount of the basic standard deduction.

The taxpayer's spouse died at the beginning of 2016.He has no qualifying child.Which status should the taxpayer select when filing his tax return?

What is the amount of the tax liability for a single person having taxable income of $59,200? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tablesor Tax Rate Schedules.

What is the amount of the tax liability for a qualifying widower) with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.

The interest charged by the IRS for the first three months of 2016 was:

John forgot to file his tax return by April 15.He did not file an extension.John finally filed his tax return on June 30 and had a remaining tax liability of $1,500.What is John's failure to file penalty? Assume he made all his payments on time.

What is the amount of the tax liability for a qualifying widower) with a dependent child and having taxable income of $18,355? All answers should be rounded to the nearest dollar. Use the appropriate ^Tax^Tablesor ^Tax^Rate^Schedules.

Failure to make required estimated payments will subject the taxpayer to a potential underpayment penalty plus interest.However,if the difference between the tax shown on the return and the amount of tax withheld for wages is less than ________,the taxpayer will not be assessed a penalty.

What is the amount of the tax liability for a married couple having taxable income of $153,500? All answers should be rounded to the nearest dollar.

The early withdrawal penalty is a for AGI deduction.Which form can the taxpayer use to claim this benefit?

What is the amount of the social security wage limitation for 2016?

Criminal penalties only apply to:

Luisa's parents can claim her as a dependent on their tax return.In 2016,her only source of income was a part-time job as a medical clerk where she earned $2,600 during the year.What is Luisa's standard deduction?

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?

Ed's parents can claim him as a dependent on their tax return.In 2016,his only source of income was $1,050 of interest income received from Global Bank.What is Ed's standard deduction?

The IRS can impose a ________ penalty on any portion of understatement of tax that is attributable to fraud.

What is the amount of the tax liability for a head of household person having taxable income of $87,573? All answers should be rounded to the nearest dollar. Use the appropriate ^Tax^Tablesor ^Tax^Rate^Schedules.