Question 1

In terms of timing as to any one year,the Tax Rate Schedules are available before the Tax Tables.

Accepted Answer

Tax Rate Schedules are generally released in advance of the Tax Tables so that taxpayers can use them to calculate their tax liability for the upcoming year. Tax Tables, on the other hand, are typically released later because they are used to help taxpayers determine their tax liability after they have completed their tax return.

Question 2

Currently,the top income tax rate in effect is the highest it has ever been.

Accepted Answer

This statement is false. While the top income tax rate has varied throughout history, it has been higher in the past. For example, in 1944-45, the top income tax rate was 94%. In the 1960s and 1970s, it was as high as 70%. Currently, the top income tax rate in the United States is 37%.

Question 3

Katelyn is divorced and maintains a household in which she and her daughter,Crissa,live.Crissa,age 22,earns $11,000 during 2011 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 4

An individual taxpayer uses a fiscal year February 1-January 31.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Accepted Answer

The due date for filing federal income tax returns for individuals who use a fiscal year that ends on January 31st is May 15th of the following year.

Question 5

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 at least 50% of his parents' support and they meet the other requirements of being dependents, he can claim them on his tax return even though they are not U.S. citizens or residents.

Question 6

When the kiddie tax applies,the child need not file an income tax return because the child's income will be reported on the parents' return.

Accepted Answer

While the kiddie tax does require a child's unearned income (such as from investments) to be reported on the parents' return, the child may still need to file their own tax return if they have other sources of income or if they owe taxes on their unearned income.

Question 7

A child who is married cannot be subject to the kiddie tax.

Accepted Answer

The kiddie tax applies to all children under the age of 19 or full-time students under the age of 24, regardless of their marital status.

Question 8

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 9

Darren,age 20 and not disabled,earns $3,500 during 2011.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Accepted Answer

The answer of Darren,age 20 and not disabled,earns $3,500 during...

Question 10

The kiddie tax does not apply as to a child whose earned income is more than one-half of his or her support.

Accepted Answer

This statement is true according to the rules of the kiddie tax. If a child's earned income exceeds one-half of their support, they are not subject to the kiddie tax.

Question 11

In January 2011,Jake's wife dies and he does not remarry.For tax year 2011,Jake may not be able to use the filing status available to married persons filing joint returns.

Accepted Answer

If Jake's wife died in January 2011, he would not be considered married for the entire tax year since he did not remarry. Therefore, he would not be able to use the filing status available to married persons filing joint returns. Instead, he would likely file as a single individual or possibly as a qualifying widower if he meets certain criteria.

Question 12

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 13

A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.

Accepted Answer

This is true according to IRS regulations. If a child has unearned income of more than $1,900, they may be subject to the kiddie tax, which taxes that income at their parents' tax rate.

Question 14

Once a child reaches age 19,the kiddie tax no longer applies.

Accepted Answer

The answer of Once a child reaches age 19,the kiddie...

Question 15

For tax purposes,married persons filing separate returns are treated the same as single taxpayers.

Accepted Answer

Married persons filing separate returns are not treated the same as single taxpayers. They have to follow specific tax rules and limitations, such as being unable to claim certain deductions and credits that are available to married couples filing jointly.

Question 16

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 is true. An abandoned spouse with dependent children can qualify for the standard deduction available to head of household.

Question 17

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 18

When the kiddie tax applies and the parents are divorced,the applicable parent (for determining the parental tax)is the one with the greater taxable income.

Accepted Answer

The answer of When the kiddie tax applies and the...

Question 19

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

In order to qualify for head of household filing status, there are several criteria that must be met, including the presence of a qualifying dependent. Since Ed's dependent friend does not meet the IRS definition of a qualifying dependent, Ed cannot claim head of household filing status.

Question 20

Keith,age 17 and single,earns $3,000 during 2011.Keith's parents can claim him as a dependent even if he does not live with them.

Accepted Answer

The fact that Keith's parents can claim him as a dependent even if he does not live with them is not affected by his age, marital status, or income. As long as he meets the requirements to be a dependent, such as not providing more than half of his own support, his parents can claim him on their tax return.

Quiz 3: Tax Determination: Personal and Dependency Exemptions: an Overview of Property Transactions