Question 1

In 2014 Brett and Lashana (both 50 years old)file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is
A)$12,400.
B)$13,600.
C)$13,950.
D)$7,750.

Accepted Answer

The answer of In 2014 Brett and Lashana (both 50...

Question 2

Ben,age 67,and Karla,age 58,have two children who live with them and for whom they provide total support.Their daughter is 21 years old,blind,is not a full-time student and has no income.Her twin brother is 21 years old,has good sight,is a full-time student and has income of $4,500.Ben and Karla can claim how many personal and dependency exemptions on their tax return?
A)2
B)3
C)4
D)5

Accepted Answer

Ben and Karla can claim two personal exemptions for themselves. They can also claim two dependency exemptions for their two children who live with them and receive total support. However, they cannot claim a dependency exemption for their son who has income over $4,300. Therefore, the total number of exemptions they can claim is four (2 personal + 2 dependency).

Question 3

Charlie is claimed as a dependent on his parents' tax return in 2014.He received $8,000 during the year from a part-time acting job,which was his only income.What is his standard deduction?
A)$1,000
B)$6,200
C)$8,000
D)$8,350

Accepted Answer

As a dependent, Charlie's standard deduction is limited to the greater of $1,000 or his earned income plus $350, up to the regular standard deduction of $6,200. Therefore, his standard deduction is $6,200.

Question 4

Which of the following types of itemized deductions are included in the category of miscellaneous expenses that are deductible only if the aggregate amount of such expenses exceeds 2% of the taxpayer's adjusted gross income?
A)unreimbursed employee business expenses
B)charitable contributions
C)medical expenses
D)home mortgage interest expense

Accepted Answer

Unreimbursed employee business expenses are included in the category of miscellaneous expenses that are deductible only if the aggregate amount of such expenses exceeds 2% of the taxpayer's adjusted gross income. Charitable contributions, medical expenses, and home mortgage interest expense have their own separate limitations and thresholds for deductibility.

Question 5

On June 1,2014,Ellen turned 65.Ellen has been a widow for five years and has no dependents.Her standard deduction is
A)$3,950.
B)$6,200.
C)$7,750.
D)$12,400.

Accepted Answer

Ellen is over 65 and filing as a single taxpayer. In 2014, the standard deduction for a single filer was $6,200, plus an additional $1,550 for being over 65, totaling $7,750.

Question 6

Deborah,who is single,is claimed as a dependent on her parents' tax return.She had a part-time job during 2014 and earned $850 during the year,which was her only income.What is her standard deduction?
A)$850
B)$1,000
C)$1,200
D)$6,100

Accepted Answer

As a dependent, Deborah's standard deduction is limited to the greater of $1,000 or her earned income plus $350, which in this case would be $1,200 ($850 + $350).

Question 7

All of the following items are included in gross income except
A)alimony received.
B)rent income.
C)interest earned on a bank account.
D)child support payments received.

Accepted Answer

Child support payments received are not included in gross income. While alimony received, rent income, and interest earned on a bank account are all taxable and must be included in gross income for tax purposes.

Question 8

Anita,who is divorced,maintains a home in which she and her 16 year old daughter live.Anita provides the majority of the support for her daughter and for a son,age 23,who is enrolled part-time at the university and lives in the dorm.The son also works in the campus bookstore and earns spending money of $4,500.How many personal and dependency exemptions may Anita claim?
A)1
B)2
C)3
D)4

Accepted Answer

Anita may claim one personal exemption for herself and one dependency exemption for her 16 year old daughter, for a total of two exemptions. She cannot claim her 23 year old son as a dependent since he is over the age of 19 and is not a full-time student.

Question 9

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has
A)gross income that is less than the personal exemption.
B)adjusted gross income that is less than the personal exemption.
C)no gross income.
D)no taxable income.

Accepted Answer

A married person who files a separate return can claim a personal exemption for his spouse only if the spouse has no gross income. If the spouse has any gross income, even if it is below the personal exemption amount, they cannot be claimed as a dependent and cannot be used to claim a personal exemption on a separate return.

Question 10

All of the following items are deductions for (not from)adjusted gross income except
A)moving expenses.
B)unreimbursed employee business expenses.
C)qualifying contributions to individual retirement accounts.
D)one-half of self-employment taxes paid.

Accepted Answer

The answer of All of the following items are deductions...

Question 11

Cheryl is claimed as a dependent on her parents' tax return.She had a part-time job during 2014 and earned $4,900 during the year,in addition to $600 of interest income.What is her standard deduction?
A)$1,000
B)$4,900
C)$5,250
D)$6,120

Accepted Answer

Since Cheryl is claimed as a dependent on her parents' tax return, she is not eligible for the standard deduction of $12,400 for single taxpayers in 2014. However, she is still allowed to take a standard deduction equal to the greater of $1,000 or her earned income plus $350, up to the regular standard deduction amount. In this case, Cheryl's earned income plus $350 is $5,250 ($4,900 + $350). Therefore, her standard deduction is $5,250.

Question 12

Which of the following credits is considered a refundable credit?
A)child and dependent care credit
B)earned income credit
C)adoption expense credit
D)lifetime learning credit

Accepted Answer

The earned income credit is the only refundable credit listed. This means that if the credit exceeds the amount of taxes owed, the taxpayer can receive the excess as a refund. The other credits listed are non-refundable, meaning that they can only be used to reduce the amount of taxes owed but cannot result in a refund.

Question 13

Sarah,who is single,maintains a home in which she,her 15-year old brother,and her 21-year-old niece live.Sarah provides the majority of the support for her brother,her niece,and her cousin,age 18,who is enrolled full-time at the university and lives in an apartment.While the niece and cousin have no income,her brother has a part-time job and earns $4,000 per year.How many personal and dependency exemptions may Sarah claim?
A)1
B)2
C)3
D)4

Accepted Answer

Sarah may claim one personal exemption for herself and three dependency exemptions for her brother, niece, and cousin who she provides the majority of support for. This brings the total exemptions she can claim to four.

Question 14

In 2014 the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is
A)$12,400.
B)$13,600.
C)$14,800.
D)$15,500.

Accepted Answer

In 2014, the standard deduction for a married couple filing jointly was $12,400. Since both spouses are over 65, they are eligible for an additional standard deduction of $1,200 each, totaling $2,400. Therefore, the total standard deduction is $12,400 + $2,400 = $14,800.

Question 15

Husband and wife,who live in a common law state,are eligible to file a joint return for 2014,but elect to file separately.They do not have dependents.Wife has adjusted gross income of $25,000 and has $2,200 of expenditures which qualify as itemized deductions.She is entitled to one exemption.Husband deducts itemized deductions of $11,200.What is the taxable income for the wife?
A)$14,850
B)$18,850
C)$8,650
D)$22,800

Accepted Answer

The answer of Husband and wife,who live in a common...

Question 16

Annisa,who is 28 and single,has adjusted gross income of $55,000 and itemized deductions of $5,000.In 2014,Annisa will have taxable income of
A)$44,850.
B)$46,050.
C)$51,050.
D)$43,800.

Accepted Answer

Annisa's taxable income is $55,000 - $5,000 = $50,000. The standard deduction for a single filer in 2014 is $6,200. Annisa's taxable income is therefore $50,000 - $6,200 = $43,800.

Question 17

All of the following items are deductions for adjusted gross income except
A)alimony paid.
B)trade or business expenses.
C)rent and royalty expenses.
D)state and local income taxes.

Accepted Answer

State and local income taxes are no longer deductible for adjusted gross income under the Tax Cuts and Jobs Act of 2017. However, alimony paid, trade or business expenses, and rent and royalty expenses are still deductible for adjusted gross income.

Question 18

The regular standard deduction is available to which one of the following taxpayers?
A)married taxpayer filing a separate return where the other spouse itemizes
B)a person who has only unearned income and is a dependent of another
C)an individual filing a return for a period of less than 12 months because of a change in accounting period
D)an abandoned spouse

Accepted Answer

An abandoned spouse is eligible for the regular standard deduction, whereas the other options have restrictions or conditions that disqualify them from taking the standard deduction.

Question 19

A single taxpayer provided the following information for 2014:  What is taxable income?
A)$57,050
B)$63,050
C)$63,000
D)$67,050

Accepted Answer

To determine the taxable income, we need to start with the taxpayer's gross income and then subtract any allowable deductions. Based on the provided information, the taxpayer's gross income is $70,000. 
From this, we can subtract the following deductions:
- $3,950 for one personal exemption
- $6,200 for the standard deduction (assuming the taxpayer does not itemize deductions)

Gross income ($70,000) - personal exemption ($3,950) - standard deduction ($6,200) = $63,050 
Therefore, the taxable income is $63,050.

Question 20

Lewis,who is single,is claimed as a dependent on his parents' tax return.He received $2,000 during the year in dividends,which was his only income.What is his standard deduction?
A)$1,000
B)$2,000
C)$2,350
D)$6,200

Accepted Answer

The answer of Lewis,who is single,is claimed as a dependent...

Quiz 4: I: Determination of Tax

In 2014 Brett and Lashana (both 50 years old) file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is

Charlie is claimed as a dependent on his parents' tax return in 2014.He received $8,000 during the year from a part-time acting job,which was his only income.What is his standard deduction?

Which of the following types of itemized deductions are included in the category of miscellaneous expenses that are deductible only if the aggregate amount of such expenses exceeds 2% of the taxpayer's adjusted gross income?

On June 1,2014,Ellen turned 65.Ellen has been a widow for five years and has no dependents.Her standard deduction is

Deborah,who is single,is claimed as a dependent on her parents' tax return.She had a part-time job during 2014 and earned $850 during the year,which was her only income.What is her standard deduction?

All of the following items are included in gross income except

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

All of the following items are deductions for (not from) adjusted gross income except

Cheryl is claimed as a dependent on her parents' tax return.She had a part-time job during 2014 and earned $4,900 during the year,in addition to $600 of interest income.What is her standard deduction?

Which of the following credits is considered a refundable credit?

In 2014 the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

Annisa,who is 28 and single,has adjusted gross income of $55,000 and itemized deductions of $5,000.In 2014,Annisa will have taxable income of

All of the following items are deductions for adjusted gross income except

The regular standard deduction is available to which one of the following taxpayers?

A single taxpayer provided the following information for 2014: What is taxable income?

Lewis,who is single,is claimed as a dependent on his parents' tax return.He received $2,000 during the year in dividends,which was his only income.What is his standard deduction?