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Match the statements that relate to each other.Note: Choice L may be used more than once. -Marginal income tax rate


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 ex­husband 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) I) and J)
N) C) and G)

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Regarding dependency exemptions,classify each statement in one of the four categories: -An uncle who lives with taxpayer.


A) Could be a qualifying child.
B) Could be a qualifying relative.
C) Could be either a qualifying child or a qualifying relative.
D) Could be neither a qualifying child nor a qualifying relative.

E) All of the above
F) B) and D)

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In 2014,Tom is single and has AGI of $50,000.He is age 70,has no dependents,and has itemized deductions (i.e. ,from AGI)of $7,000.Determine Tom's taxable income for 2014.

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$38,300.Tom's standard deduction is $6,2...

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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.

A) True
B) False

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In 2014,Hal furnishes more than half of the support of his ex-wife and her father,both of whom live with him.The divorce occurred in 2013.Hal may claim the father-in-law and the ex-wife as dependents.

A) True
B) False

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When married persons file a joint return,joint and several liability results.What does this mean?

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Joint and several liability me...

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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?

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The election to file a joint return has ...

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Match the statements that relate to each other.Note: Choice L may be used more than once. -$1,000


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) D) and H)
N) C) and E)

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Match the statements that relate to each other.Note: Choice L may be used more than once. -Basic standard deduction


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) D) and H)
N) E) and L)

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Benjamin,age 16,is claimed as a dependent by his parents.During 2014,he earned $700 at a car wash. Benjamin's standard deduction is $1,350 ($1,000 + $350).

A) True
B) False

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Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI.Since he plans to choose the standard deduction option for the year,does the distinction matter? Explain.

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It makes a great deal of difference if t...

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Clara,age 68,claims head of household filing status.If she has itemized deductions of $10,250 for 2014,she should not claim the standard deduction.

A) True
B) False

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Gain on the sale of collectibles held for more than 12 months always is subject to a tax rate of 28%.

A) True
B) False

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Match the statements that relate to each other.Note: Choice L may be used more than once. -Age of a qualifying child


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) D) and F)
N) B) and L)

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Because they appear on page 1 of Form 1040,itemized deductions are also referred to as "page 1 deductions."

A) True
B) False

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Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

A) True
B) False

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When filing their Federal income tax returns,the Youngs always claimed the standard deduction.After they purchased a home,however,they started to itemize their deductions from AGI. a.Explain the reason for the change. b.Suppose they purchased the home in November 2013,but did not start itemizing until tax year 2014.Why the delay as to itemizing?

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a.The interest on the home mortgage and ...

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For the past few years,Corey's filing status has been as follows: 2010 (married/joint);2011 (married/separate);2012 (surviving spouse);2013 (surviving spouse);and 2014 (head of household).Explain what probably has happened.

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One probable explanation is that Corey's...

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

A) True
B) False

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Emily had the following transactions during 2014: Emily had the following transactions during 2014:

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$100,000.$90,000 (salary)+ $5,000 (inter...

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Showing 101 - 120 of 188

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