Question 1

A child for whom a dependency exemption is claimed on the parents' tax return may also claim a personal exemption on his or her own tax return.

Accepted Answer

A child for whom a dependency exemption is claimed on the parents' tax return cannot claim a personal exemption on his or her own tax return. The child may only claim a personal exemption if he or she is not claimed as a dependent on someone else's tax return.

Question 2

Wesley owns and operates the Cheshire Chicken Ranch in Turpid,Nevada.The income from this ranch is $49,000.Wesley wishes to use the easiest possible tax form.He may file:

Accepted Answer

The answer of Wesley owns and operates the Cheshire Chicken...

Question 3

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Accepted Answer

Scholarships received by a student can be excluded for purposes of the support test as they are not considered part of the support provided by the taxpayer.

Question 4

Which of the following is correct?

Accepted Answer

The answer of Which of the following is correct?
...

Question 5

For 2013,personal and dependency exemptions are $3,900 each.

Accepted Answer

This is true for the 2013 tax year.

Question 6

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file form 1040A:

Accepted Answer

Form 1040 allows taxpayers to report self-employment income, while taxpayers who file Form 1040A cannot report this income. Salary income (choice A), joint return status (choice B), and withholding on wages (choice C) are all allowable items on both Form 1040 and Form 1040A.

Question 7

Taxpayers can download tax forms from the IRS Internet site.

Accepted Answer

Taxpayers can download tax forms from the IRS Internet site.

Question 8

If a taxpayer's adjusted gross income exceeds certain threshold amounts,he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2013.

Accepted Answer

This is correct as per the IRS guidelines for 2013. If a taxpayer's adjusted gross income exceeds certain threshold amounts, they may have to reduce the amount of itemized deductions and personal and dependency exemptions they can claim. This is known as the "Pease limitation."

Question 9

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions,whichever is higher.

Accepted Answer

This statement is true. Taxpayers have the option to choose between claiming the standard deduction amount or itemizing their deductions, whichever amount is higher.

Question 10

Partnerships:

Accepted Answer

The answer of Partnerships:
...

Question 11

Which of the following is not a goal of the tax law?

Accepted Answer

Encouraging smaller families is not a goal of the tax law. The tax law aims to raise revenue to operate the government, encourage certain social and economic goals such as contributions to charity and a thriving business community respectively. Therefore, option C is the correct answer.

Question 12

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

Accepted Answer

According to IRS rules, a taxpayer may claim a dependency exemption for a dependent who died during the year if the dependent met the requirements for a qualifying child or a qualifying relative for the part of the year he or she was alive. The taxpayer can claim the exemption on their tax return for the year in which the dependent died.

Question 13

An individual,age 22,enrolled on a full-time basis at a trade school,is considered a student for purposes of determining whether a dependency exemption is permitted.

Accepted Answer

According to the IRS, an individual enrolled full-time at a qualifying institution, such as a trade school, is considered a student for purposes of the dependency exemption.

Question 14

A taxpayer who is living alone and is legally separated from his or her spouse under a separate maintenance decree at year-end should file as single.

Accepted Answer

A taxpayer who is legally separated from their spouse under a separate maintenance decree at year-end is considered unmarried according to the IRS and should file as single.

Question 15

Which of the following forms may be filed by individual taxpayers?

Accepted Answer

Individual taxpayers can file Form 1040, also known as the U.S. Individual Income Tax Return form. Forms 1041, 1065, and 1120 are filed by other types of taxpayers such as trusts, partnerships, and corporations.

Question 16

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

Accepted Answer

This is true according to IRS regulations. Any excess capital losses can be carried forward to future tax years.

Question 17

The two types of exemptions are the personal exemption and the dependency exemption.

Accepted Answer

The statement is true. The two types of exemptions are the personal exemption and the dependency exemption.

Question 18

In 2013,the Affordable Care Act ACA)added a new Medicare surtax of 3.8 percent on net investment income.

Accepted Answer

The ACA did add a new Medicare surtax of 3.8 percent on net investment income, starting in 2013.

Question 19

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

Accepted Answer

The charitable deduction encourages individuals to donate to charitable organizations, which contributes to meeting social goals such as providing aid to the needy and supporting education and healthcare.

Question 20

Partnership income is reported on:

Accepted Answer

Partnership income is reported on Form 1065, which is the U.S. Return of Partnership Income. This form is used to report each partner's share of the partnership's income, gains, losses, deductions, and credits.

Quiz 1: The Individual Income Tax Return

A child for whom a dependency exemption is claimed on the parents' tax return may also claim a personal exemption on his or her own tax return.

Wesley owns and operates the Cheshire Chicken Ranch in Turpid,Nevada.The income from this ranch is $49,000.Wesley wishes to use the easiest possible tax form.He may file:

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Which of the following is correct?

For 2013,personal and dependency exemptions are $3,900 each.

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file form 1040A:

Taxpayers can download tax forms from the IRS Internet site.

If a taxpayer's adjusted gross income exceeds certain threshold amounts,he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2013.

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions,whichever is higher.

Partnerships:

Which of the following is not a goal of the tax law?

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

An individual,age 22,enrolled on a full-time basis at a trade school,is considered a student for purposes of determining whether a dependency exemption is permitted.

A taxpayer who is living alone and is legally separated from his or her spouse under a separate maintenance decree at year-end should file as single.

Which of the following forms may be filed by individual taxpayers?

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

The two types of exemptions are the personal exemption and the dependency exemption.

In 2013,the Affordable Care Act ACA)added a new Medicare surtax of 3.8 percent on net investment income.

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

Partnership income is reported on: