Question 1

Robin's parents can claim him as a dependent on their tax return. In 2015, his only source of income was a part-time job as a supermarket clerk where he earned $3,200 during the year. What is Robin's standard deduction?
A) $1,050.
B) $3,550.
C) $3,200.
D)$6,200.

Accepted Answer

Since Robin's parents can claim him as a dependent, his standard deduction is limited to the greater of $1,050 or his earned income plus $350, up to a maximum of $6,200 in 2015. Since his earned income was $3,200, his standard deduction would be $3,550, which is greater than the $1,050 minimum. Therefore, Choice B is the correct answer.

Question 2

The taxpayer's spouse died at the beginning of 2015. She has a qualifying child. Which status should the taxpayer select when filing her tax return for 2015?
A) Single.
B) Married Filing Jointly.
C) Head of Household.
D)Qualifying Widow(er).

Accepted Answer

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

Question 3

Severin, who is 20 years old and a full- time student, is claimed by his parent as a dependent. However, in 2015, he earned $5,350. What is the amount of the personal exemption that he can claim on his tax return?
A) $3,950.
B) $1,000.
C) $0.
D)$5,400.

Accepted Answer

If Severin is claimed as a dependent on someone else's tax return, he is not eligible to claim a personal exemption on his own tax return. Therefore, the correct answer is $0.

Question 4

To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is part of the four specific tests?
A) Gross income test.
B) Age test.
C) Citizen or resident test.
D)Residency test.

Accepted Answer

The gross income test is one of the four specific tests that a taxpayer must meet in order to have a qualifying relative. The other three specific tests are the support test, the relationship test, and the joint return test. The general tests include the member of household or relationship test, the gross income test, and the support test.

Question 5

A qualifying relative must earn less than _____ for the year 2015.
A) $1,050
B) $6,300
C) $9,250
D)$4,000

Accepted Answer

In 2015, a qualifying relative must earn less than $4,000 in order to be claimed as a dependent on someone else's tax return. This income threshold includes income from all sources, including wages, salaries, tips, interest, dividends, and unemployment compensation.

Question 6

The basic standard deduction in 2015 for a single taxpayer who is 67 years old and not blind is:
A) $7,550.
B) $6,300.
C) $7,850.
D)$1,550.

Accepted Answer

In 2015, the basic standard deduction for a single taxpayer was $6,300. However, since the taxpayer is 67 years old, they are eligible for an additional standard deduction of $1,550 for being over 65, making the total $7,850.

Question 7

A head of household taxpayer with a dependent child had wages of $47,200. Which is the simplest form this person can file?
A) 1040EZ.
B) 1040ES.
C) 1040A.
D)1040.

Accepted Answer

A head of household taxpayer with a dependent child cannot file using Form 1040EZ because they have a dependent. Form 1040ES is not a tax return form, but rather a form for estimated tax payments. Form 1040 is not the simplest form as it is the longest and most complex form. Form 1040A would be the simplest form for this taxpayer as they are filing as head of household and have a dependent, and this form allows for certain adjustments and credits to be claimed.

Question 8

Which of the following items would not be considered as support for a dependency exemption?
A) shelter.
B) food.
C) medical and dental care.
D)life insurance premiums.

Accepted Answer

Life insurance premiums would not be considered as support for a dependency exemption, as they are not a basic necessity that supports the well-being of the dependent.

Question 9

What is the total amount of personal exemptions a taxpayer and spouse can claim for 2015?
A) $8,000.
B) $9,250.
C) $4,000.
D)$12,600.

Accepted Answer

For the tax year 2015, each personal exemption was worth $4,000. A taxpayer and their spouse could claim two exemptions, totaling $8,000.

Question 10

The additional standard deduction amount for a taxpayer who is 65, single and blind is:
A) $3,100.
B) $2,500.
C) $2,800.
D)$3,000.

Accepted Answer

The additional standard deduction for a taxpayer who is both 65 and blind is $3,100. This is because each condition (being 65 or older and being blind) qualifies the taxpayer for an additional standard deduction amount, and these amounts are cumulative.

Question 11

The basic standard deduction in 2015 for a taxpayer, 69 and not blind, filing head of household is:
A) $6,300.
B) $9,250.
C) $10,800.
D)$10,300.

Accepted Answer

The answer of The basic standard deduction in 2015 for...

Question 12

What is the amount of the tax liability for a head of household person having taxable income of $122,500? All answers should be rounded to the nearest dollar.
A) $30,625.
B) $27,796.
C) $34,300.
D)$24,948.

Accepted Answer

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

Question 13

To be a qualifying child, the taxpayer must meet three general tests and five specific tests. Which one is not part of the three general tests?
A) Joint return test.
B) Citizen or resident test.
C) Dependent taxpayer test.
D)Support test.

Accepted Answer

The three general tests for a qualifying child are the dependent taxpayer test, the joint return test, and the citizen or resident test. The support test is not one of the general tests but is instead one of the five specific tests that must also be met.

Question 14

What is the amount of the tax liability for a married couple having taxable income of $96,843? All answers should be rounded to the nearest dollar.
A) $14,526.
B) $13,604.
C) $15,794.
D)$15,923.

Accepted Answer

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

Question 15

Which amount represents the standard deduction for a taxpayer who is single and 68 years of age?
A) $6,300.
B) $7,850.
C) $6,200.
D)$7,550.

Accepted Answer

For the tax year 2023, the standard deduction for a single taxpayer who is 65 or older is $7,850.

Question 16

Peter forgot to file his tax return by April 15. He did not file an extension. Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500. What is Peter's failure to file penalty? Assume he made all his payments on time.
A) $875.
B) $525.
C) $350.
D)$700.

Accepted Answer

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

Question 17

On December 31, 2015, a taxpayer received the notification that he was legally divorced. However, he lived with his spouse for 8 months during 2015. He has no dependent children. What status should he select when filing his tax return for 2015?
A) Married Filing Separately.
B) Head of Household.
C) Married Filing Jointly.
D)Single.

Accepted Answer

Since the taxpayer was legally divorced by the end of the year, he must file as Single for the 2015 tax year.

Question 18

What is the amount of the tax liability for a single person having taxable income of $55,300? All answers should be rounded to the nearest dollar.
A) $9,625.
B) $9,754.
C) $8,295.
D)$9,681.

Accepted Answer

The tax liability for a single person with a taxable income of $55,300 is $9,625.

Question 19

What is the amount of the tax liability for a married person filing a separate return and having taxable income of $115,715? All answers should be rounded to the nearest dollar.
A) $26,435.
B) $25,926.
C) $32,400.
D)$25,950.

Accepted Answer

The tax liability for a married person filing a separate return and having taxable income of $115,715 is $25,950.

Question 20

The IRS can impose a _______ penalty on any portion of understatement of tax that is attributable to fraud.
A) 20%
B) 25%
C) 75%
D)5%

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 significant penalty meant to discourage taxpayers from intentionally defrauding the government.

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

Robin's parents can claim him as a dependent on their tax return. In 2015, his only source of income was a part-time job as a supermarket clerk where he earned $3,200 during the year. What is Robin's standard deduction?

The taxpayer's spouse died at the beginning of 2015. She has a qualifying child. Which status should the taxpayer select when filing her tax return for 2015?

Severin, who is 20 years old and a full- time student, is claimed by his parent as a dependent. However, in 2015, he earned $5,350. What is the amount of the personal exemption that he can claim on his tax return?

To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is part of the four specific tests?

A qualifying relative must earn less than _____ for the year 2015.

The basic standard deduction in 2015 for a single taxpayer who is 67 years old and not blind is:

A head of household taxpayer with a dependent child had wages of $47,200. Which is the simplest form this person can file?

Which of the following items would not be considered as support for a dependency exemption?

What is the total amount of personal exemptions a taxpayer and spouse can claim for 2015?

The additional standard deduction amount for a taxpayer who is 65, single and blind is:

The basic standard deduction in 2015 for a taxpayer, 69 and not blind, filing head of household is:

What is the amount of the tax liability for a head of household person having taxable income of $122,500? All answers should be rounded to the nearest dollar.

To be a qualifying child, the taxpayer must meet three general tests and five specific tests. Which one is not part of the three general tests?

What is the amount of the tax liability for a married couple having taxable income of $96,843? All answers should be rounded to the nearest dollar.

Which amount represents the standard deduction for a taxpayer who is single and 68 years of age?

Peter forgot to file his tax return by April 15. He did not file an extension. Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500. What is Peter's failure to file penalty? Assume he made all his payments on time.

On December 31, 2015, a taxpayer received the notification that he was legally divorced. However, he lived with his spouse for 8 months during 2015. He has no dependent children. What status should he select when filing his tax return for 2015?

What is the amount of the tax liability for a single person having taxable income of $55,300? All answers should be rounded to the nearest dollar.

What is the amount of the tax liability for a married person filing a separate return and having taxable income of $115,715? All answers should be rounded to the nearest dollar.

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