Question 1

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

Accepted Answer

The filing requirement based on gross income does not take into account additional standard deductions for age or blindness; it is primarily determined by the gross income threshold, filing status, and age.

Question 2

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Accepted Answer

The due date for individual taxpayers using a fiscal year of March 1 to February 28 is generally the 15th day of the fourth month following the close of the fiscal year. Therefore, the due date for this taxpayer's Federal income tax return would be June 15, not May 15.

Question 3

In terms of timing as to any one year,the Tax Tables are available before the Tax Rate Schedules.

Accepted Answer

The answer of In terms of timing as to any...

Question 4

For tax purposes,married persons filing separate returns are treated the same as single taxpayers.

Accepted Answer

Married persons filing separate tax returns have their own tax brackets and deductions, but they still have to follow specific rules and limitations, which are different from those who are single.

Question 5

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

Accepted Answer

Once a married couple files a joint return, they cannot later switch to separate returns for that year.

Question 6

Surviving spouse filing status begins in the year in which the deceased spouse died.

Accepted Answer

Surviving spouse filing status, also known as "qualifying widow(er) with dependent child" status, can be used for two years following the year of the spouse's death, provided the surviving spouse does not remarry and maintains a home for a dependent child.

Question 7

Stealth taxes are directed at lower income taxpayers.

Accepted Answer

The answer of Stealth taxes are directed at lower income...

Question 8

Katelyn is divorced and maintains a household in which she and her daughter,Crissa,live.Crissa,age 22,earns $11,000 during 2016 as a model.Katelyn does not qualify for head of household filing status.

Accepted Answer

Katelyn does not qualify for head of household filing status because Crissa is not a qualifying child. Crissa is over 19 and not a full-time student.

Question 9

Kim,a resident of Oregon,supports his parents who are residents of Canada but citizens of Korea.Kim can claim his parents as dependents.

Accepted Answer

According to IRS rules, a U.S. taxpayer can claim a parent as a dependent if the parent is a U.S. citizen, U.S. resident alien, or a resident of Canada or Mexico. Since Kim's parents are residents of Canada, he can claim them as dependents.

Question 10

Since an abandoned spouse is treated as not married and has one or more dependent children,he or she qualifies for the standard deduction available to head of household.

Accepted Answer

This statement is true. According to the IRS, an abandoned spouse who is not married and has one or more dependent children may qualify for the standard deduction available to head of household taxpayers, as long as they meet other eligibility criteria.

Question 11

Lucas,age 17 and single,earns $6,000 during 2016.Lucas's parents cannot claim him as a dependent if he does not live with them.

Accepted Answer

According to IRS rules, if a child is not living with their parents and they are earning enough income to support themselves, the parents cannot claim them as a dependent. Since Lucas is 17 and earning $6,000, he may not be claimed as a dependent by his parents if he does not live with them.

Question 12

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

Accepted Answer

Married taxpayers who file separately have the option to amend their tax returns to file jointly within 3 years from the due date of the original return (excluding extensions).

Question 13

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.

Accepted Answer

The answer of Sarah furnishes more than 50% of the...

Question 14

In January 2016,Jake's wife dies and he does not remarry.For tax year 2016,Jake may not be able to use the filing status available to married persons filing joint returns.

Accepted Answer

Once a taxpayer's spouse passes away, they may not use the filing status of married persons filing jointly. Jake would need to use a different filing status, such as single or head of household.

Question 15

Ed is divorced and maintains a home in which he and a dependent friend live.Ed does not qualify for head of household filing status.

Accepted Answer

To qualify for head of household filing status, the taxpayer must be unmarried at the end of the year or be considered unmarried, have paid more than half the cost of keeping up a home for the year, and have a qualifying person who lived with them for more than half the year. Since Ed is divorced and does not have a qualifying person who lived with him for more than half the year, he cannot qualify for head of household status.

Question 16

For dependents who have income,special filing requirements apply.

Accepted Answer

If dependents have income, they may need to file their own tax return or be included on their parent's tax return depending on the amount and type of income they received. There are special rules and requirements that apply in these situations.

Question 17

Currently,the top income tax rate in effect is not the highest it has ever been.

Accepted Answer

The top income tax rate in the United States was highest in the years following World War II, when it reached a peak of around 90%. The current top income tax rate is lower than this, although it varies depending on income level and other factors.

Question 18

A taxpayer who itemizes must use Form 1040,and cannot use Form 1040EZ or Form 1040A.

Accepted Answer

This is true. Only taxpayers who use Form 1040 can itemize their deductions. The simpler forms, 1040EZ and 1040A, do not provide the option to itemize.

Question 19

Darren,age 20 and not disabled,earns $4,100 during 2016.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Accepted Answer

In 2016, a qualifying child must be under 19 or a full-time student under 24. Since Darren is 20 and not a full-time student, his parents cannot claim him as a dependent based on his age and income.

Question 20

In terms of income tax consequences,abandoned spouses are treated the same way as married persons filing separate returns.

Accepted Answer

Abandoned spouses can be treated as unmarried for tax purposes and may qualify to use the head of household filing status, which often offers more favorable tax rates and benefits than filing as married filing separately.

Quiz 3: Tax Formula and Tax Determination an Overview of Property Transactions