Question 1

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home to attend school full time is counted as though the child lived in the taxpayer's home during the absence.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following types of income are not considered ordinary income?

Accepted Answer

A)  Compensation income.
B)  Short term capital gains.
C)  Qualified dividend income.
D)  Both compensation income and qualified dividend income.
E)  Both short term capital gains and qualified dividend income.F) A) and D)
G) D) and E)

Question 3

Taxpayers are generally allowed to claim deductions for expenditures unless a specific tax provision indicates the expenditure is not deductible.

Accepted Answer

A) True 
 B)False

Question 4

Anna is a 21-year-old full-time college student (she plans on returning home at the end of the school year) . Her total support for the year was $34,000 (including $8,000 of tuition) . Anna covered $12,000 of her support costs out of her own pocket (from savings, she did not work) and she received an $8,000 scholarship that covered all of her tuition costs. Which of the following statements regarding who is allowed to claim Anna as an exemption is true?

Accepted Answer

A)  Even if Anna's parents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) , they would not be able to claim her as a dependent.
B)  Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) , they would not be able to claim her as a dependent.
C)  Because she provided more than half her own support, Anna would not qualify as her parents' dependent.
D)  None of these statements are true.E) A) and B)
F) All of the above

Question 5

The test for qualifying child includes an age restriction but the test for qualifying relative does not.

Accepted Answer

A) True 
 B)False

Question 6

Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2020, Ed and Jane realized the following items of income and expense:
  They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2020 standard deduction amount for MFJ taxpayers is $24,800.
What is the couple's adjusted gross income?

Accepted Answer

$99,000, s...

Question 7

For purposes ofdetermining filing status, which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year?

Accepted Answer

A)  The taxpayer claims a child as a dependent.
B)  The taxpayer pays more than half the costs of maintaining his or her home for the entire year and the home is the principal residence for a dependent qualifying child for more than half the year.
C)  The taxpayer files a tax return separate from the other spouse.
D)  The spouse does not live in the taxpayer's home at all during the year.E) None of the above
F) C) and D)

Question 8

Jane is unmarried and has no children, but provides more than half of her mother's financial support. Jane's mother lives in an apartment across town and has a part-time job earning $5,000 a year. Which is the most advantageous filing status available to Jane?

Accepted Answer

A)  Single.
B)  Head of household.
C)  Qualifying individual.
D)  Surviving single.E) C) and D)
F) A) and B)

Question 9

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent parent.

Accepted Answer

A) True 
 B)False

Question 10

The Dashwoods have calculated their taxable income to be $88,000 for 2020, which includes $2,000 of long-term capital gains. Using the appropriate tax rate schedules, calculate the Dashwoods' income tax liability assuming they are married and file a joint return.

Accepted Answer

$10,800, computed as...

Question 11

Which of the following is NOT a from AGI deduction?

Accepted Answer

A)  Standard deduction.
B)  Itemized deduction.
C)  Deduction for qualified business income.
D)  None of these. All of these are from AGI deductions.E) A) and B)
F) B) and C)

Question 12

In certain circumstances, a taxpayer who provides less than half the support of another may still be able to claim that person as a dependent as a qualifying relative.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements regarding for AGI tax deductions is true?

Accepted Answer

A)  Taxpayers subtract for AGI deductions from gross income to determine AGI.
B)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's standard deduction amount.
C)  The deduction for qualified business income is a for AGI deduction.
D)  A taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's itemized deductions.E) C) and D)
F) All of the above

Question 14

Filing status determines all of the following except ___________

Accepted Answer

A)  the applicable standard deduction amount.
B)  the appropriate tax rate schedule or tax table.
C)  the top-stated marginal rate in the tax rate schedule.
D)  the AGI threshold for reductions in certain tax benefits.E) A) and B)
F) A) and C)

Question 15

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Accepted Answer

A)  The relationship requirement is more broadly defined (more inclusive) for qualifying relatives than for qualifying children.
B)  Qualifying children are subject to age restrictions while qualifying relatives are not.
C)  The support test for qualifying relatives focuses on the support the potential dependent self-provides while the support test for qualifying children focuses on the support the taxpayer provides.
D)  Qualifying relatives are subject to a gross income restriction while qualifying children are not.E) B) and C)
F) A) and B)

Question 16

Which of the following statements regarding dependents is false?

Accepted Answer

A)  A taxpayer may be allowed to claim another as a dependent even if the taxpayer has no family relationship with the other person.
B)  To qualify as a dependent of another, an individual must be a resident of the United States.
C)  An individual who qualifies as a dependent of another taxpayer may not claim any dependents.
D)  An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds a certain amount.E) All of the above
F) A) and D)

Question 17

If an unmarried taxpayer iseligible to claim another as a dependent, the taxpayer is automatically eligible for the head of household filing status.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are for AGI deductions except:

Accepted Answer

A)  Contributions to qualified retirement accounts.
B)  Rental and royalty expenses.
C)  Business expenses for a self-employed taxpayer.
D)  None of the above. All of the above are for AGI deductions.E) A) and B)
F) All of the above

Question 19

Catherine de Bourgh has one child, Anne, who is 18 years old at the end of the year. Anne lived at home for seven months during the year before leaving home to attend State University for the remaining five months of the year. During the year, Anne earned $6,000 while working part time. Catherine provided 80 percent of Anne's support and Anne provided the rest. Which of the following statements regarding whether Anne is Catherine's qualifying child for the current year is correct?

Accepted Answer

A)  Anne is a qualifying child of Catherine.
B)  Anne is not a qualifying child of Catherine because she fails the gross income test.
C)  Anne is not a qualifying child of Catherine because she fails the residence test.
D)  Anne is not a qualifying child of Catherine because she fails the support test.E) A) and C)
F) A) and B)

Question 20

Greg is single. During 2020, he received $60,000 of salary from his employer. That was his only source of income. He reported $3,000 of for AGI deductions and $9,000 of itemized deductions. The 2020 standard deduction amount for a single taxpayer is $12,400. What is Greg's taxable income?

Accepted Answer

$44,600, c...

Exam 4: Individual Income Tax Overview, Dependents, and Filing Status

Correct Answer
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$99,000, s...
View Answer

All of the following are for AGI deductions except:

Correct Answer
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The test for qualifying child includes an age restriction but the test for qualifying relative does not.

Correct Answer
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Greg is single. During 2020, he received $60,000 of salary from his employer. That was his only source of income. He reported $3,000 of for AGI deductions and $9,000 of itemized deductions. The 2020 standard deduction amount for a single taxpayer is $12,400. What is Greg's taxable income?

Correct Answer
verified
$44,600, c...
View Answer

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home to attend school full time is counted as though the child lived in the taxpayer's home during the absence.

Correct Answer
verified

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent parent.

Correct Answer
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If an unmarried taxpayer iseligible to claim another as a dependent, the taxpayer is automatically eligible for the head of household filing status.

Correct Answer
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Which of the following types of income are not considered ordinary income?

Correct Answer
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Jane is unmarried and has no children, but provides more than half of her mother's financial support. Jane's mother lives in an apartment across town and has a part-time job earning $5,000 a year. Which is the most advantageous filing status available to Jane?

Correct Answer
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Filing status determines all of the following except ___________

Correct Answer
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Which of the following statements regarding for AGI tax deductions is true?

Correct Answer
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Which of the following is NOT a from AGI deduction?

Correct Answer
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Correct Answer
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For purposes ofdetermining filing status, which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year?

Correct Answer
verified

In certain circumstances, a taxpayer who provides less than half the support of another may still be able to claim that person as a dependent as a qualifying relative.

Correct Answer
verified

The Dashwoods have calculated their taxable income to be $88,000 for 2020, which includes $2,000 of long-term capital gains. Using the appropriate tax rate schedules, calculate the Dashwoods' income tax liability assuming they are married and file a joint return.

Correct Answer
verified
$10,800, computed as...
View Answer

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Correct Answer
verified

Taxpayers are generally allowed to claim deductions for expenditures unless a specific tax provision indicates the expenditure is not deductible.

Correct Answer
verified

Correct Answer
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Which of the following statements regarding dependents is false?

Correct Answer
verified

Exam 4: Individual Income Tax Overview, Dependents, and Filing Status

Correct Answerverified$99,000, s...View AnswerShow Answer

All of the following are for AGI deductions except:

Correct AnswerverifiedShow Answer

The test for qualifying child includes an age restriction but the test for qualifying relative does not.

Correct AnswerverifiedShow Answer

Greg is single. During 2020, he received $60,000 of salary from his employer. That was his only source of income. He reported $3,000 of for AGI deductions and $9,000 of itemized deductions. The 2020 standard deduction amount for a single taxpayer is $12,400. What is Greg's taxable income?

Correct Answerverified$44,600, c...View AnswerShow Answer

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home to attend school full time is counted as though the child lived in the taxpayer's home during the absence.

Correct AnswerverifiedShow Answer

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent parent.

Correct AnswerverifiedShow Answer

If an unmarried taxpayer iseligible to claim another as a dependent, the taxpayer is automatically eligible for the head of household filing status.

Correct AnswerverifiedShow Answer

Which of the following types of income are not considered ordinary income?

Correct AnswerverifiedShow Answer

Jane is unmarried and has no children, but provides more than half of her mother's financial support. Jane's mother lives in an apartment across town and has a part-time job earning $5,000 a year. Which is the most advantageous filing status available to Jane?

Correct AnswerverifiedShow Answer

Filing status determines all of the following except ___________

Correct AnswerverifiedShow Answer

Which of the following statements regarding for AGI tax deductions is true?

Correct AnswerverifiedShow Answer

Which of the following is NOT a from AGI deduction?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For purposes ofdetermining filing status, which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year?

Correct AnswerverifiedShow Answer

In certain circumstances, a taxpayer who provides less than half the support of another may still be able to claim that person as a dependent as a qualifying relative.

Correct AnswerverifiedShow Answer

The Dashwoods have calculated their taxable income to be $88,000 for 2020, which includes $2,000 of long-term capital gains. Using the appropriate tax rate schedules, calculate the Dashwoods' income tax liability assuming they are married and file a joint return.

Correct Answerverified$10,800, computed as...View AnswerShow Answer

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

Correct AnswerverifiedShow Answer

Taxpayers are generally allowed to claim deductions for expenditures unless a specific tax provision indicates the expenditure is not deductible.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements regarding dependents is false?

Correct AnswerverifiedShow Answer

Correct Answer
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$99,000, s...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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$44,600, c...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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$10,800, computed as...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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