Question 1

Determine from the tax table or the tax rate schedule,whichever is appropriate,the amount of the income tax for each of the following taxpayers for 2017.

Accepted Answer

The answer of Determine from the tax table or the...

Question 2

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 is considered unmarried for tax purposes, and therefore would file as single.

Question 3

Norman and Linda are married taxpayers with taxable income of $126,000 in 2017.
a.When you calculate their tax liability are you required to use the tax tables or the tax rate schedules,or does it matter?
b.What is their tax liability?

Accepted Answer

The answer of Norman and Linda are married taxpayers with...

Question 4

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 file as head of household if he provides a home for his dependent child for more than half the year and if he meets the other requirements for this filing status.

Question 5

Robert is a single taxpayer who has AGI of $145,000 in 2017;his taxable income is $122,000.What is his federal tax liability for 2017?

Accepted Answer

To determine Robert's federal tax liability, we need to use the 2017 tax tables for single taxpayers. Based on his taxable income of $122,000, we can determine that he falls into the 28% tax bracket.

First, we calculate his tax liability using the 2017 tax brackets and rates:

- $9,325 at 10% = $932.50
- $28,624 at 15% = $4,293.60
- $53,950 at 25% = $13,487.50
- $29,101 at 28% = $8,152.28

Adding these amounts together, we get a total tax liability of $27,866.88. However, Robert may be eligible for some deductions and tax credits that could lower his tax liability.

Assuming Robert takes the standard deduction of $6,350 and has no dependents, his total tax liability would be $27,141.75. Therefore, the best answer is C ($27,141.75).

Question 6

Madeline is single and supports her 85-year-old parents who live in a senior home paid for by Madeline and have no income.What is Madeline's filing status and why?

Accepted Answer

The answer of Madeline is single and supports her 85-year-old...

Question 7

During 2017,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 2016.What is his filing status for 2017?

Accepted Answer

Howard qualifies as a qualifying widower for 2017 because his wife died in 2016, and he has a dependent child. This status allows him to use the married filing jointly tax rates for two years following the year of his spouse's death.

Question 8

Match the letter of the filing status to the taxpayers below. Items may be used more than once.
-The taxpayer's husband died last year.Her 13 year-old dependent daughter lives with her.

Accepted Answer

The taxpayer qualifies as a qualifying widow(er) for the tax year following her husband's death. This status allows her to use the same tax rates and deductions as a taxpayer filing a joint return.

Question 9

Match the letter of the filing status to the taxpayers below. Items may be used more than once.
-The unmarried taxpayer supports his dependent mother,who lives next door in a separate apartment.

Accepted Answer

The unmarried taxpayer who supports his dependent mother and lives in a separate apartment qualifies as a head of household, which has a higher standard deduction and lower tax rates compared to filing as a single taxpayer.

Question 10

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 is unmarried and maintains a household for a dependent child, which makes them eligible to file as a head of household. The fact that their spouse died four years ago does not disqualify them from filing as head of household, as long as they have not remarried. The options of single, qualifying widow(er), and married filing separately do not apply in this situation.

Question 11

Match the letter of the filing status to the taxpayers below. Items may be used more than once.
-The taxpayer is married,but her husband disappeared with a girlfriend while on vacation in March of the current year.The taxpayer has no dependents.

Accepted Answer

Since the taxpayer's husband is not present, the only option is to file as married filing separate returns.

Question 12

Irma,widowed in 2016,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 2017?

Accepted Answer

Since Irma's son does not qualify as her dependent, she cannot file as Head of Household. She is not married, so she cannot file as Married, filing separate. She does not qualify as a Qualifying Widow(er) because that status is only available for two years following the year of the spouse's death if there is a dependent child. Therefore, her filing status is Single.

Question 13

A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent and the taxpayer did not agree to give the other parent the right to claim the child as a dependent.

Accepted Answer

To qualify as head of household, the taxpayer must have a qualifying child or dependent, and the child must be claimed as a dependent unless the custodial parent has released the claim to the non-custodial parent.

Question 14

Alan,whose wife died in 2015,filed a joint tax return for 2015.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 2017,Alan should file as:

Accepted Answer

Since Alan's wife died in 2015, he can file as a qualifying widow(er) for 2017 if he meets certain requirements. He must have a qualifying child living with him and he must have paid more than half the cost of keeping up his home for the year. As per the given information, Alan has four dependent children living with him in his home, so he meets the first requirement. Assuming he paid more than half the cost of keeping up his home for the year, his best filing status option would be to file as a qualifying widow(er).

Question 15

A married person with a dependent child may choose to file as head of household if it reduces his or her tax liability.

Accepted Answer

To qualify for the head of household filing status, a taxpayer must be unmarried or considered unmarried on the last day of the year, and must have paid more than half the cost of keeping up a home for the year, which was also the main home for the taxpayer and a qualifying person (such as a dependent child) for more than half the year. A married person generally cannot choose to file as head of household simply to reduce tax liability.

Question 16

Most states are community property states.

Accepted Answer

Only nine states in the U.S. are considered community property states, where property acquired during the marriage is considered jointly owned by both spouses. The majority of states follow equitable distribution rules.

Question 17

List each alternative filing status available to unmarried individual taxpayers.

Accepted Answer

The answer of List each alternative filing status available to...

Question 18

Curt and Linda were married on December 31 of the prior year.What are their options for filing status for their prior year taxes?

Accepted Answer

The answer of Curt and Linda were married on December...

Question 19

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 $4,200 of wages from a part-time job at the college book store.What is Ann's filing status for 2017?

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 qualifying relative for that status.

Question 20

If taxpayers are married and living together at the end of the year,they must file a joint tax return.

Accepted Answer

Married taxpayers have the option to file jointly or separately on their tax return.

Quiz 1: The Individual Income Tax Return