Question 1

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

Accepted Answer

This is true because itemized deductions require additional forms and schedules that cannot be accommodated on the simpler tax forms (1040EZ and 1040A).

Question 2

Keith,age 17 and single,earns $3,000 during 2012.Keith's parents cannot claim him as a dependent even if he does not live with them.

Accepted Answer

The answer of Keith,age 17 and single,earns $3,000 during 2012.Keith's...

Question 3

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 joint return is filed, the taxpayers are considered to have made an irrevocable election to file jointly for that tax year. They cannot later switch to separate returns.

Question 4

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 5

Darren,age 20 and not disabled,earns $4,000 during 2012.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Accepted Answer

According to the IRS rules, if Darren is not a full-time student and is over the age of 19 and not disabled, his parents cannot claim him as a dependent on their tax return, regardless of his income.

Question 6

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 7

In January 2012,Jake's wife dies and he does not remarry.For tax year 2012,Jake may not be able to use the filing status available to married persons filing joint returns.

Accepted Answer

If Jake's spouse died in January 2012 and he did not remarry, he would not be able to file a joint return for tax year 2012 as he was not married for the entire tax year. He would have to file as a single or head of household.

Question 8

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, a taxpayer must meet certain criteria such as being unmarried, paying for more than half the cost of keeping up a home, and having a qualifying dependent living with them for more than half the year. As Ed is divorced and does not have a qualifying dependent, he does not meet the requirements for head of household filing status.

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

As long as Kim provides more than 50% of his parents' financial support and they do not earn more than the exemption amount, he can claim them as dependents on his tax return regardless of their citizenship or residency.

Question 10

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 11

Married taxpayers who file separately cannot later change to a joint return.

Accepted Answer

The answer of Married taxpayers who file separately cannot later...

Question 12

Katelyn is divorced and maintains a household in which she and her daughter,Crissa,live.Crissa,age 22,earns $11,000 during 2012 as a model.Katelyn does qualify for head of household filing status.

Accepted Answer

The answer of Katelyn is divorced and maintains a household...

Question 13

An individual taxpayer uses a fiscal year March 1-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 an individual taxpayer using a fiscal year March 1-February 28 is usually June 15, not May 15. However, if the taxpayer has income from a partnership or S corporation, their due date may be earlier, typically March 15.

Question 14

Stealth taxes are directed at higher income taxpayers.

Accepted Answer

Stealth taxes are generally designed to target higher income taxpayers, often in a less obvious or transparent way than other forms of taxation. They may take the form of increased fees, reduced tax deductions, or other measures that affect higher earners more than others.

Question 15

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.

Question 16

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 17

Since an abandoned spouse is treated as single 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. An abandoned spouse who has one or more dependent children qualifies for the standard deduction available to head of household.

Question 18

For dependents who have income,special filing requirements apply.

Accepted Answer

If a dependent has income, they may be required to file their own tax return and follow certain rules and limitations related to their dependent status.

Question 19

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 20

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

Accepted Answer

Historically, the top income tax rates have been much higher than they are currently, with rates exceeding 90% in the 1950s.

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