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Exam 9: Individuals As the Taxpayer

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Question 61

True/False

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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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Question 62

Multiple Choice

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During 2016, Marvin had the following transactions: Marvin's AGI is:

A) $32,000.
B) $38,000.
C) $44,000.
D) $56,000.
E) $64,000.

F) C) and D)
G) C) and E)

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Question 63

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When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

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

For the year a spouse dies, the surviving spouse is considered married for the entire year for income tax purposes.

Regarding dependency exemptions, classify each statement in one of the four categories: -A daughter who does not live with taxpayer.

Lee, a citizen of Korea, is a resident of the U.S. Any rent income Lee receives from land he owns in Korea is not subject to the U.S. income tax.

Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live. Crissa, age 22, earns $11,000 during 2016 as a model. Katelyn does not qualify for head of household filing status.

Clara, age 68, claims head of household filing status. If she has itemized deductions of $10,500 for 2016, she should not claim the standard deduction.

Warren, age 17, is claimed as a dependent by his father. In 2016, Warren has dividend income of $1,500 and earns $400 from a part-time job. a.​What is Warren's taxable income for 2016? b.​Suppose Warren earned $1,200 (not $400) from the part-time job. What is Warren's taxable income for 2016?

Regarding the tax formula and its relationship to Form 1040, which, if any, of the following statements is correct?

As opposed to itemizing deductions from AGI, the majority of individual taxpayers choose the standard deduction.

Jason and Peg are married and file a joint return. Both are over 65 years of age and Jason is blind. Their standard deduction for 2016 is $16,350 ($12,600 + $1,250 + $1,250 + $1,250).

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

Nelda is married to Chad, who abandoned her in early June of 2016. She has not seen or communicated with him since then. She maintains a household in which she and her two dependent children live. Which of the following statements about Nelda's filing status in 2016 is correct?

Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes. a.​If the Harpers file a joint return for 2016, can they later switch to separate returns for 2016? b.If the Harpers file separate returns for 2016, can they later switch to a joint return for 2016?

Darren, age 20 and not disabled, earns $4,100 during 2016. Darren's parents cannot claim him as a dependent unless he is a full-time student.

Butch and Minerva are divorced in December of 2016. Since they were married for more than one-half of the year, they are considered as married for 2016.

Merle is a widow, age 80 and blind, who is claimed as a dependent by her son. During 2016, she received $4,800 in Social Security benefits, $2,500 in bank interest, and $1,800 in cash dividends from stocks. Merle's taxable income is:

Regarding dependency exemptions, classify each statement in one of the four categories: -A cousin who does not live with taxpayer.