Essentials of Federal Income Taxation for Individuals and Business: Individual Income Tax Accounting QUIZ Flashcards


Set Details Share
created 11 years ago by GreenHero64
1,998 views
The study of individual income tax principles underlying filing status, personal exemptions, dependency, gross income, deductions for adjusted gross income, standard and itemized deductions, and income tax calculation. This is a hands-on course consisting of the preparation of various individual income tax returns using Form1040EZ, Form1040A, Form1040, and IL 1040.
updated 11 years ago by GreenHero64
Grade levels:
College: First year, College: Second year, College: Third year, College: Fourth year
Subjects:
accounting, business & economics, taxation
show moreless
Page to share:
Embed this setcancel
COPY
code changes based on your size selection
Size:
X
Show:

1

When a married person files a joint return, that person can never be claimed as a dependent by another taxpayer.

False

2

When a taxpayer remarries in the same year that her spouse dies, the surviving spouse cannot file a joint return with her deceased spouse in the death year, even if the new spouse files a separate return.

True

3

Under the Multiple Support Agreement rules, any taxpayer who provides more than 10% of the support of another person qualifies to claim that person as a dependent.

False

4

The filing requirement for a married taxpayer filing separately, who does not qualify as another taxpayer's dependent, starts when gross income exceeds the personal exemption amount for that year.

True

5

A married couple filing jointly can increase their standard deduction by $4,800 if both are elderly and blind.

True

6

A taxpayer's son-in-law, age 21, is a full-time student with $7,000 of gross income. If other requirements are met, the taxpayer can claim the son-in-law as a dependent under the rules for a qualifying child.

False

7

A widow with a dependent child files head of household for the two years immediately after the year of the spouse's death.

False

8

A 15-year-old foster child residing with a single a taxpayer for eight months of the year may qualify the taxpayer for head of household status.

True

9

Abe and Tammy divorced in 2009. Abe continues to support Tammy's mother, who lives in a nursing home. Abe cannot claim his mother-in-law as a dependent because she no longer passes the relationship test.

False

10

When a noncustodial parent (father) provides more than 50% of the support of his child, he is entitled to claim as a dependent.

False

11

Married filing jointly and qualifying widow(er) share the same tax rates.

True

12

For purposes of the child and dependent care credit, only the custodial parent can claim a child as a qualifying child.

True

13

The initial child tax credit equals $1,000 for a dependent child under the age of 17.

True

14

Employers are required to withhold Medicare taxes on only the first $200,000 of Medicare wages.

False

15

Taxpayers with taxable income of less than $100,000 must use the Tax Table to determine their tax liability.

True

16

A retirement savings contributions credit is available for a $1,000 contribution to a qualified retirement plan by a dependent whose AGI is only $10,000.

False

17

The maximum annual residential energy credit is $500.

False

18

A married couple cannot file Form 1040EZ.

False

19

The American opportunity credit is available only for qualified higher education expenses paid during a student's first two years of college.

False

20

Taxpayers eligible to claim the earned income credit can use it to reduce their tax liability and, in some cases, to create a tax refund.

True

21

For purposes of claiming the earned income credit, a married child must be the taxpayer's dependent in order to claim the child as a qualifying child.

True

22

A married taxpayer with $80,000 of taxable income filing married filing separately will have a larger tax liability than an unmarried taxpayer with the same taxable imcome.

True

23

The tax liability on $50,000 of taxable income would be the same if computed using the tax rate schedule and the tax table.

False

24

Comparing the tax on $50,000 of taxable income for each tax filing status, the filing status that produces the greatest amount of tax is married filing separately.

True

25

Taxpayers with AGI in excess of $250,000 are not entitled to the child and dependent care credit.

False