Question 1

Interest payers banks,savings and loans,insurance companies,etc.)report interest earnings to taxpayers on a:

Accepted Answer

Form 1099-INT is specifically used to report interest income earned by individuals from banks, savings and loans, insurance companies, and other interest payers. Form W-2-INT is used by employers to report taxable interest on employee wages, while Form 4070 is used for tips received by employees. Form 1099-INC does not exist.

Question 2

Which of the following is a statutory source of tax authority?

Accepted Answer

The Internal Revenue Code (IRC) is a statute passed by Congress and signed into law by the President, making it a statutory source of tax authority. Revenue Rulings and IRS Regulations are administrative interpretations of the tax law, while Tax Court decisions are legal precedents resulting from court cases.

Question 3

For equivalent amounts of taxable income,the total tax liability of a single individual:

Accepted Answer

The tax liability for a single individual will typically be more than married filing jointly due to the higher tax bracket for single filers. The tax liability of married filing separately may be more or less than that of a single individual, depending on their respective incomes and deductions. Therefore, option A is incorrect, and option B does not provide sufficient information to make a conclusion.

Question 4

Carla is age 64 and Xavier is age 66.They file their tax return as married filing jointly.During all of 2016 they did not have qualifying health coverage nor were they eligible for an exemption.Their household income was $84,990.What is the amount of shared responsibility payment they must report on their 2016 income tax return?

Accepted Answer

The shared responsibility payment for 2016 is the greater of 2.5% of household income above the filing threshold or $695 per adult. The filing threshold for married filing jointly in 2016 was $20,700. Therefore, 2.5% of ($84,990 - $20,700) is $1,607.25. However, the maximum penalty is capped at the national average premium for a bronze plan, which was $2,676 for a family. Since $1,607.25 is less than this cap, the correct amount is $1,576, which is the 2.5% calculation rounded down to the nearest whole dollar.

Question 5

The tax liability for a single individual with taxable income of $67,293 is:

Accepted Answer

The answer of The tax liability for a single individual...

Question 6

Which court hears most of the litigated tax disputes between the IRS and taxpayers?

Accepted Answer

The U.S. Tax Court hears most of the litigated tax disputes between the IRS and taxpayers. It is a specialized court that deals exclusively with tax issues and provides taxpayers with a forum to dispute tax deficiencies and penalties determined by the IRS. The U.S. Court of Federal Claims and U.S. District Courts also handle tax-related cases, but the Tax Court is the primary forum for resolving tax controversies.

Question 7

Which of the following are primary sources of tax authority?

Accepted Answer

All of the options provided are considered primary sources of tax authority. Administrative sources would include publications from the Internal Revenue Service and other governmental agencies. Judicial sources would include court decisions related to tax issues. Statutory sources would include tax laws and regulations passed by legislative bodies such as the Internal Revenue Code.

Question 8

Peter and Penelope are married and have combined W-2 income of $76,861.They paid an additional $529 when they filed their taxes.How much income tax did their employers withhold during the year?

Accepted Answer

The answer of Peter and Penelope are married and have...

Question 9

Which of the following would disqualify a taxpayer from filing a Form 1040EZ?

Accepted Answer

Form 1040EZ does not allow for dependents. If a taxpayer has a dependent, they cannot use Form 1040EZ and must use another form, such as Form 1040 or 1040A.

Question 10

Which of the following trial courts hear tax cases?

Accepted Answer

The U.S. Court of Federal Claims, U.S. Tax Court, and U.S. District Court all hear tax cases.

Question 11

Victoria determined her tax liability was $6,145.Her employer withheld $6,451 from her paychecks during the year.Victoria's tax return would show:

Accepted Answer

Since Victoria's tax liability was less than the amount withheld from her paychecks, she overpaid her taxes for the year. Therefore, she is entitled to a refund of the difference between her tax liability and the amount withheld, which is $306 (6451 - 6145).

Question 12

In terms of dollars,wage-earning taxpayers will normally pay the majority of their tax liability:

Accepted Answer

Wage-earning taxpayers typically pay their tax liability through withholding from their wages. Employers deduct taxes from employees' paychecks and remit the funds to the government on their behalf. This method helps taxpayers avoid owing a large amount of money at tax time and eases the burden of paying taxes throughout the year.

Question 13

Employers report wage income to employees on a:

Accepted Answer

Employers report wage income to employees on Form W-2. Form 1099-E is used to report interest income, Form W-3 is used to transmit Form W-2 information to the Social Security Administration, and Form 1099-G is used to report certain government payments.

Question 14

Which of the following would disqualify a taxpayer from filing a Form 1040EZ?

Accepted Answer

To file Form 1040EZ, the taxpayer must be under the age of 65 and not blind. Therefore, being age 68 and not blind disqualifies the taxpayer from filing Form 1040EZ. The other options, having no dependents, having interest income less than $1,500, and having total taxable income under $100,000, are all qualifying criteria for filing Form 1040EZ.

Question 15

Which of the following is an administrative source of tax law?

Accepted Answer

All of these options (IRS Regulation, Revenue Ruling, and Private Letter Ruling) are administrative sources of tax law. IRS Regulations are official interpretations of the Internal Revenue Code by the IRS and have the force of law. Revenue Rulings are issued by the IRS to provide guidance on how to apply the tax law to specific factual situations. Private Letter Rulings are issued by the IRS in response to a taxpayer's specific request for guidance on how to apply the tax law to their particular situation.

Question 16

Taxpayers who do not have qualifying health care insurance coverage can receive an exemption.Which of the following is NOT a permitted exemption?

Accepted Answer

Gross income greater than $10,350 for single taxpayers is not a permitted exemption. The other choices are permitted exemptions.

Question 17

On Form 1040EZ,the permitted deduction from income for a single taxpayer is:

Accepted Answer

The permitted deduction from income for a single taxpayer on Form 1040EZ is $10,350 for tax year 2017. This deduction includes the standard deduction of $6,350 and the personal exemption of $4,000.

Question 18

Hamad is an employee of Mountain Company.He properly completed his Form 1040EZ tax return and was required to pay the IRS $1,374 at the time of filing.He had income tax withholding during the year of $4,429.His tax liability for the year was:

Accepted Answer

Hamad's tax liability is the total amount of tax he owes for the year. Since he had $4,429 withheld and still owed $1,374 at filing, his total tax liability is $4,429 + $1,374 = $5,803.

Question 19

Alice is an employee of Valley Company.She properly completed her Form 1040EZ tax return and received a refund from the IRS of $1,293.Alice had income tax withholding during the year of $4,881.Her tax liability for the year was:

Accepted Answer

The tax liability for the year is calculated by subtracting the total tax withheld (which is $4,881 in this case) from the total tax liability, which is the amount of tax owed based on Alice's total taxable income for the year. Since Alice received a refund of $1,293 from the IRS, it means that her total tax liability was less than the total tax withheld. Therefore, her tax liability for the year would be $4,881 - $1,293 = $3,588. Option A) is the correct choice.

Question 20

The tax liability for a married couple with taxable income of $55,747 is:

Accepted Answer

The answer of The tax liability for a married couple...

Quiz 1: Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Interest payers banks,savings and loans,insurance companies,etc.) report interest earnings to taxpayers on a:

Which of the following is a statutory source of tax authority?

For equivalent amounts of taxable income,the total tax liability of a single individual:

The tax liability for a single individual with taxable income of $67,293 is:

Which court hears most of the litigated tax disputes between the IRS and taxpayers?

Which of the following are primary sources of tax authority?

Peter and Penelope are married and have combined W-2 income of $76,861.They paid an additional $529 when they filed their taxes.How much income tax did their employers withhold during the year?

Which of the following would disqualify a taxpayer from filing a Form 1040EZ?

Which of the following trial courts hear tax cases?

Victoria determined her tax liability was $6,145.Her employer withheld $6,451 from her paychecks during the year.Victoria's tax return would show:

In terms of dollars,wage-earning taxpayers will normally pay the majority of their tax liability:

Employers report wage income to employees on a:

Which of the following would disqualify a taxpayer from filing a Form 1040EZ?

Which of the following is an administrative source of tax law?

Taxpayers who do not have qualifying health care insurance coverage can receive an exemption.Which of the following is NOT a permitted exemption?

On Form 1040EZ,the permitted deduction from income for a single taxpayer is:

Hamad is an employee of Mountain Company.He properly completed his Form 1040EZ tax return and was required to pay the IRS $1,374 at the time of filing.He had income tax withholding during the year of $4,429.His tax liability for the year was:

Alice is an employee of Valley Company.She properly completed her Form 1040EZ tax return and received a refund from the IRS of $1,293.Alice had income tax withholding during the year of $4,881.Her tax liability for the year was:

The tax liability for a married couple with taxable income of $55,747 is: