Question 1

Robert is a single taxpayer who has AGI of $145,000 in 2013;his taxable income is $122,000.What is his federal tax liability for 2013?

Accepted Answer

To find Robert's federal tax liability, we need to use the tax brackets for 2013. Based on his taxable income of $122,000 and the tax brackets, his tax liability would be calculated as:
- $17,850 at 10% = $1,785
- ($72,500 - $17,850) at 15% = $7,478.50
- ($116,750 - $72,500) at 25% = $11,062.50
- ($122,000 - $116,750) at 28% = $1,462.00
Total tax liability = $21,788.00
However, because Robert's AGI is above $142,800, he is also subject to an additional 0.9% Medicare tax on the amount exceeding $200,000. In this case, Robert's income subject to the Medicare tax is $145,000 - $200,000 = $0. Therefore, his additional Medicare tax is $0. 
Total federal tax liability = $21,788.00 + $0 = $21,788.00. 
Rounded to the nearest dollar, the answer is C) $27,453.

Question 2

Which of the following taxpayers does not have to file a tax return for 2013?

Accepted Answer

The answer of Which of the following taxpayers does not...

Question 3

Irma,widowed in 2012,pays all costs related to the home in which she and her unmarried son live.Her son does not qualify as her dependent.What is her filing status for 2013?

Accepted Answer

Since Irma's son does not qualify as her dependent, she cannot file as Head of Household. As a widow in 2012, she does not qualify for Qualifying Widower status in 2013. Therefore, her filing status is Single.

Question 4

Amended individual returns are filed on:

Accepted Answer

Amended individual returns are filed on Form 1040X. Form 1120S is for S corporations, Form 1041 is for trusts and estates, and Form 1040Amend does not exist.

Question 5

Alan,whose wife died in 2011,filed a joint tax return for 2011.He did not remarry and continues to maintain his home in which his four dependent children live.In the preparation of his tax return for 2013,Alan should file as:

Accepted Answer

Alan can file as a qualifying widower for the two years following the year of his wife's death as long as he has a dependent child living with him and he paid more than half of the cost of keeping up his home for the year. As he has not remarried and has four dependent children, he meets the criteria for qualifying widower status.

Question 6

In which of the following situations is the taxpayer not required to file an income tax return?

Accepted Answer

According to the IRS website, individuals who are single and under 65 years old with wages of $9,750 or less in 2013 are not required to file a tax return. Therefore, option B fits this criteria and the taxpayer is not required to file an income tax return. All other options have wages that exceed the threshold and therefore would be required to file a tax return. Option A is not relevant as it pertains to obtaining a tax refund and not filing a tax return.

Question 7

If an individual wishes to amend his individual tax return,he will make the amendment using what form?

Accepted Answer

If an individual wishes to amend or correct his individual tax return, he will use Form 1040X (Amended U.S. Individual Income Tax Return). This form is used to make changes to a previously filed tax return, such as correcting errors, adding deductions or credits, or changing filing status. Forms 1040A and 1120 are not used for amending individual tax returns, and Schedule K-1 is used by partnerships to report each partner's share of income, deductions, and credits.

Question 8

Oscar and Mary have no dependents and file a joint income tax return for 2013.They have adjusted gross income of $145,000 and itemized deductions of $32,000.What is the amount of taxable income that Oscar and Mary must report on their 2013 income tax return?

Accepted Answer

The answer of Oscar and Mary have no dependents and...

Question 9

An individual is a head of household.What is her standard deduction?

Accepted Answer

The answer of An individual is a head of household.What...

Question 10

John,age 25,is a full-time student at a state university.John lives with his unmarried sister,Ann,who provides over half of his support.His only income is $4,000 of wages from a part-time job at the college book store.What is Ann's filing status for 2013?

Accepted Answer

Ann's filing status is Single because she is unmarried and does not qualify for Head of Household as John does not meet the requirements to be considered her dependent for this status.

Question 11

During 2013,Howard maintained his home in which he and his 16 year-old son resided.The son qualifies as his dependent.Howard's wife died in 2012.What is his filing status for 2013?

Accepted Answer

Howard qualifies as a "Qualifying Widower" for two years following the year of his spouse's death, provided he maintains a home for a dependent child.

Question 12

During 2013,Murray,who is 60 years old and unmarried,provided all of the support of his elderly mother.His mother was a resident of a home for the aged for the entire year and had no income.What is Murray's filing status for 2013,and how many exemptions should he claim on his tax return?

Accepted Answer

Murray can file as head of household because he provided more than half of the support for his mother, who qualifies as his dependent. He can claim two exemptions: one for himself and one for his mother.

Question 13

Eugene and Velma are married.For 2013,Eugene earned $25,000 and Velma earned $30,000.They have decided to file separate returns and are each entitled to claim one personal exemption.They have no deductions for adjusted gross income.Eugene's itemized deductions are $11,200 and Velma's are $4,000.Assuming Eugene and Velma do not live in a community property state,what is Velma's taxable income?

Accepted Answer

Since Eugene and Velma are filing separate returns, they cannot split their itemized deductions. Velma's taxable income will be calculated as follows:

Velma's gross income = $30,000
Velma's itemized deductions = $4,000
Velma's personal exemption = $3,950

Velma's taxable income = Gross income - Itemized deductions - Personal exemption
Velma's taxable income = $30,000 - $4,000 - $3,950
Velma's taxable income = $22,050

Therefore, the correct answer is D) $22,100.

Question 14

Eugene and Velma are married.For 2013,Eugene earned $25,000 and Velma earned $30,000.They have decided to file separate returns and are each entitled to claim one personal exemption.They have no deductions for adjusted gross income.Eugene's itemized deductions are $11,200 and Velma's are $4,000.Assuming Eugene and Velma do not live in a community property state,what is Eugene's taxable income?

Accepted Answer

The answer of Eugene and Velma are married.For 2013,Eugene earned...

Question 15

All of the following factors are important in determining whether an individual is required to file an income tax return,except:

Accepted Answer

The taxpayer's total itemized deductions are not the only factor in determining whether they are required to file an income tax return. The other factors listed - filing status, gross income, and availability of the additional standard deduction for elderly taxpayers - are all important considerations.

Question 16

Depending on the amounts of income and other tax information,some individuals may report their income on:

Accepted Answer

Form 1040A is used by individuals with less complex tax situations who do not itemize deductions, have taxable income less than $100,000, and only have income from wages, salaries, tips, scholarships, grants, and interest. Form 1065 is used for partnerships, Form 1120 is used for corporations, and Form 1041 is used for estates and trusts.

Question 17

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Accepted Answer

The taxpayer qualifies to file as head of household because they are unmarried, maintain a household for a dependent child, and the child is considered a qualifying person for the purpose of determining the taxpayer's filing status. The fact that the spouse died four years ago does not affect the taxpayer's ability to file as head of household. Option C (qualifying widower) could be a valid choice if the taxpayer's spouse died within the past two years and the taxpayer has not remarried.

Question 18

During 2013,Anita was entirely supported by her three sons,Dudley,Carlton,and Isidore,who provided support for her in the following percentages: Dudley $\quad$8 percent
Carlton $\quad$45 percent
Isidore $\quad$47 percent Which of the brothers may be allowed to claim his mother as a dependent,assuming a multiple support agreement exists?

Accepted Answer

Under a multiple support agreement, any person who contributes more than 10% of the support can claim the dependent, provided they have the consent of others who contributed more than 10%. Both Carlton and Isidore meet this criterion.

Question 19

John,45 years old and unmarried,contributed $1,000 monthly in 2013 to the support of his parents' household.The parents lived alone and their income for 2013 consisted of $500 from dividends and interest.What is John's filing status and how many exemptions should he claim on his 2013 tax return?

Accepted Answer

John can file as head of household because he provided more than half of the support for his parents, who are qualifying relatives. He can claim 3 exemptions: one for himself and one for each of his parents.

Question 20

William is a divorced taxpayer who provides a home for his dependent child,Edward.What filing status should William indicate on his tax return?

Accepted Answer

William can qualify for head of household status if he is unmarried, paid for more than half of the costs of keeping up a home for himself and his dependent child (Edward), and Edward lived with him for more than half of the year. As a divorced taxpayer, William is considered unmarried for tax purposes, and he provides a home for his dependent child. Therefore, he meets the requirements for head of household filing status.

Quiz 1: The Individual Income Tax Return