Question 1

Monique is a resident of the U.S. and a citizen of France. If she files a U.S. income tax return, Monique cannot claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 2

An increase in a taxpayer's AGI could decrease the amount of charitable contribution that can be claimed.

Accepted Answer

A) True 
 B)False

Question 3

In resolving qualified child status for dependency exemption purposes, why are tiebreaker rules necessary? Can these rules be waived?

Accepted Answer

A person being claimed as a de...

Question 4

In terms of income tax consequences, abandoned spouses are treated the same way as married persons filing separate returns.

Accepted Answer

A) True 
 B)False

Question 5

In determining whether the gross income test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

Accepted Answer

A) True 
 B)False

Question 6

Match the statements that relate to each other. Note: Choice l. may be used more than once.
-Long-term capital gains

Accepted Answer

A)  Available to a 70-year-old father claimed as a dependent by his son.
B)  Equal to tax liability divided by taxable income.
C)  The highest income tax rate applicable to a taxpayer.
D)  Not eligible for the standard deduction.
E)  No one qualified taxpayer meets the support test.F) Taxpayer's ex-husband does not qualify.G) A dependent child (age 18)  who has only unearned income.H) Highest applicable rate is 39.6%.I) Applicable rate could be as low as 0%.J) Maximum rate is 28%.K) Income from foreign sources is not subject to tax.L) No correct match provided.M) D) and I)
N) A) and B)

Question 7

Mr. Lee is a citizen and resident of Hong Kong, while Mr. Anderson is a citizen and resident of the U.S. In the taxation of income, Hong Kong uses a territorial approach, while the U.S. follows the global system. In terms of effect, explain what this means to Mr. Lee and Mr. Anderson.

Accepted Answer

Mr. Lee is taxed only on the income he r...

Question 8

Which, if any, of the following is a deduction for AGI?

Accepted Answer

A)  Contributions to a traditional Individual Retirement Account.
B)  Child support payments.
C)  Funeral expenses.
D)  Loss on the sale of a personal residence.
E)  Medical expenses.F) None of the above
G) A) and E)

Question 9

An "above the line" deduction refers to a deduction for AGI.

Accepted Answer

A) True 
 B)False

Question 10

DeWayne is a U.S. citizen and resident. He spends much of each year in the United Kingdom on business. He is married to Petula, a U.K. citizen and resident of London. DeWayne has heard that it is possible that he can file a joint income tax return for U.S. purposes. If this is so, what are the constraints he should consider in making any such decision?

Accepted Answer

The election to file a joint return has ...

Question 11

Match the statements that relate to each other. Note: Choice l. may be used more than once.
-Resident of Canada or Mexico

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S. citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) H) and K)
N) F) and J)

Question 12

For dependents who have income, special filing requirements apply.

Accepted Answer

A) True 
 B)False

Question 13

Lena is 66 years of age, single, and blind and is not claimed as a dependent. How much gross income must she have before she is required to file a Federal income tax return for 2016?

Accepted Answer

$11,900. $6,300 (basic standard deductio...

Question 14

In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?

Accepted Answer

A)  In arriving at taxable income, a taxpayer must choose between the standard deduction and deductions from AGI.
B)  In arriving at AGI, personal and dependency exemptions must be subtracted from gross income.
C)  In arriving at taxable income, a taxpayer must choose between the standard deduction and claiming personal and dependency exemptions.
D)  The formula does not apply if a taxpayer elects to claim the standard deduction.
E)  None of these.F) A) and C)
G) B) and D)

Question 15

Kyle, whose wife died in December 2013, filed a joint tax return for 2013. He did not remarry, but has continued to maintain his home in which his two dependent children live. What is Kyle's filing status in 2016?

Accepted Answer

A)  Head of household
B)  Surviving spouse
C)  Single
D)  Married filing separately
E)  None of theseF) D) and E)
G) C) and E)

Question 16

Match the statements that relate to each other. Note: Choice l. may be used more than once.
-Scholarship funds for room and board

Accepted Answer

A)  Not available to 65-year old taxpayer who itemizes.
B)  Exception for U.S. citizenship or residency test (for dependency exemption purposes) .
C)  Largest basic standard deduction available to a dependent who has no earned income.
D)  Considered for dependency exemption purposes.
E)  Qualifies for head of household filing status.F) A child (age 15)  who is a dependent and has only earned income.G) Considered in applying gross income test (for dependency exemption purposes) .H) Not considered in applying the gross income test (for dependency exemption purposes) .I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.J) Exception to the support test (for dependency exemption purposes) .K) A child (age 16)  who is a dependent and has only unearned income of $4,500.L) No correct match provided.M) E) and K)
N) D) and I)

Question 17

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

A) True 
 B)False

Question 18

Match the statements that relate to each other. Note: Choice l. may be used more than once.
-Global system of taxation

Accepted Answer

A)  Available to a 70-year-old father claimed as a dependent by his son.
B)  Equal to tax liability divided by taxable income.
C)  The highest income tax rate applicable to a taxpayer.
D)  Not eligible for the standard deduction.
E)  No one qualified taxpayer meets the support test.F) Taxpayer's ex-husband does not qualify.G) A dependent child (age 18)  who has only unearned income.H) Highest applicable rate is 39.6%.I) Applicable rate could be as low as 0%.J) Maximum rate is 28%.K) Income from foreign sources is not subject to tax.L) No correct match provided.M) B) and G)
N) C) and J)

Question 19

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2016, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma's taxable income is:

Accepted Answer

A)  $700.
B)  $900.
C)  $1,750.
D)  $2,250.
E)  None of these.F) A) and E)
G) A) and B)

Question 20

Evan and Eileen Carter are husband and wife and file a joint return for 2016. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 25) , who is a full-time medical student. Pamela receives a $5,000 scholarship covering her tuition at college. They furnish all of the support of Belinda (Evan's grandmother) , who is age 80 and lives in a nursing home. They also support Peggy (age 66) , who is a friend of the family and lives with them. How many dependency exemptions may the Carters claim?

Accepted Answer

A)  Two
B)  Three
C)  Four
D)  Five
E)  None of theseF) A) and B)
G) D) and E)

Exam 9: Individuals As the Taxpayer

For dependents who have income, special filing requirements apply.

Correct Answer
verified

In resolving qualified child status for dependency exemption purposes, why are tiebreaker rules necessary? Can these rules be waived?

Correct Answer
verified
A person being claimed as a de...
View Answer

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.

Correct Answer
verified

Correct Answer
verified

In determining whether the gross income test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

Correct Answer
verified

In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?

Correct Answer
verified

Correct Answer
verified
The election to file a joint return has ...
View Answer

Which, if any, of the following is a deduction for AGI?

Correct Answer
verified

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Global system of taxation

Correct Answer
verified

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Long-term capital gains

Correct Answer
verified

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Scholarship funds for room and board

Correct Answer
verified

Kyle, whose wife died in December 2013, filed a joint tax return for 2013. He did not remarry, but has continued to maintain his home in which his two dependent children live. What is Kyle's filing status in 2016?

Correct Answer
verified

An "above the line" deduction refers to a deduction for AGI.

Correct Answer
verified

Monique is a resident of the U.S. and a citizen of France. If she files a U.S. income tax return, Monique cannot claim the standard deduction.

Correct Answer
verified

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2016, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma's taxable income is:

Correct Answer
verified

Mr. Lee is a citizen and resident of Hong Kong, while Mr. Anderson is a citizen and resident of the U.S. In the taxation of income, Hong Kong uses a territorial approach, while the U.S. follows the global system. In terms of effect, explain what this means to Mr. Lee and Mr. Anderson.

Correct Answer
verified
Mr. Lee is taxed only on the income he r...
View Answer

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Resident of Canada or Mexico

Correct Answer
verified

An increase in a taxpayer's AGI could decrease the amount of charitable contribution that can be claimed.

Correct Answer
verified

In terms of income tax consequences, abandoned spouses are treated the same way as married persons filing separate returns.

Correct Answer
verified

Lena is 66 years of age, single, and blind and is not claimed as a dependent. How much gross income must she have before she is required to file a Federal income tax return for 2016?

Correct Answer
verified
$11,900. $6,300 (basic standard deductio...
View Answer

Exam 9: Individuals As the Taxpayer

For dependents who have income, special filing requirements apply.

Correct AnswerverifiedShow Answer

In resolving qualified child status for dependency exemption purposes, why are tiebreaker rules necessary? Can these rules be waived?

Correct AnswerverifiedA person being claimed as a de...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In determining whether the gross income test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

Correct AnswerverifiedShow Answer

In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe election to file a joint return has ...View AnswerShow Answer

Which, if any, of the following is a deduction for AGI?

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Global system of taxation

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Long-term capital gains

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Scholarship funds for room and board

Correct AnswerverifiedShow Answer

Kyle, whose wife died in December 2013, filed a joint tax return for 2013. He did not remarry, but has continued to maintain his home in which his two dependent children live. What is Kyle's filing status in 2016?

Correct AnswerverifiedShow Answer

An "above the line" deduction refers to a deduction for AGI.

Correct AnswerverifiedShow Answer

Monique is a resident of the U.S. and a citizen of France. If she files a U.S. income tax return, Monique cannot claim the standard deduction.

Correct AnswerverifiedShow Answer

Wilma, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2016, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma's taxable income is:

Correct AnswerverifiedShow Answer

Mr. Lee is a citizen and resident of Hong Kong, while Mr. Anderson is a citizen and resident of the U.S. In the taxation of income, Hong Kong uses a territorial approach, while the U.S. follows the global system. In terms of effect, explain what this means to Mr. Lee and Mr. Anderson.

Correct AnswerverifiedMr. Lee is taxed only on the income he r...View AnswerShow Answer

Match the statements that relate to each other. Note: Choice l. may be used more than once. -Resident of Canada or Mexico

Correct AnswerverifiedShow Answer

An increase in a taxpayer's AGI could decrease the amount of charitable contribution that can be claimed.

Correct AnswerverifiedShow Answer

In terms of income tax consequences, abandoned spouses are treated the same way as married persons filing separate returns.

Correct AnswerverifiedShow Answer

Lena is 66 years of age, single, and blind and is not claimed as a dependent. How much gross income must she have before she is required to file a Federal income tax return for 2016?

Correct Answerverified$11,900. $6,300 (basic standard deductio...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
A person being claimed as a de...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The election to file a joint return has ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Mr. Lee is taxed only on the income he r...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$11,900. $6,300 (basic standard deductio...
View Answer