,Test Bank For Income Tax Fundamentals 2023 1st Edition
Chapter 1. The Individual Income Tax Return.
Chapter 1. The Individual Income Tax Return.
1. 001: The U.S. federal tax law's sole purpose is to
The U.S. federal tax law's sole purpose is to raise revenue.
a. True
*b. False
2. 002: A corporation is a reporting entity but not a tax-paying en
A corporation is a reporting entity but not a tax-paying entity.
a. True
*b. False
3. 003: Partnership capital gains and losses are allocated separate
Partnership capital gains and losses are allocated separately to each
of the partners.
*a. True
b. False
4. 004: Married taxpayers may double their standard deduction amoun
Married taxpayers may double their standard deduction amount by filing
separate returns.
a. True
*b. False
5. 005: An item is included in gross income unless the tax law spec
An item is included in gross income unless the tax law specifies that
the item is subject to exclusion.
*a. True
b. False
6. 006: For taxpayers who do not itemize deductions, the standard d
For taxpayers who do not itemize deductions, the standard deduction
amount is subtracted from the taxpayer's adjusted gross income.
*a. True
b. False
7. 007: A taxpayer with self-employment income of $600 must file a
A taxpayer with self-employment income of $600 must file a tax return.
*a. True
b. False
1
,Test Bank For Income Tax Fundamentals 2023 1st Edition
Chapter 1. The Individual Income Tax Return.
8. 008: A dependent child with earned income in excess of the avail
A dependent child with earned income in excess of the available
standard deduction amount must file a tax return.
*a. True
b. False
9. 009: A single taxpayer, who is not a dependent on anotherâ™s re
A single taxpayer, who is not a dependent on another’s return, not
blind, and under age 65, with income of $11,800 must file a tax return.
a. True
*b. False
10. 010: If a taxpayer is due a refund, it will be mailed to the tax
If a taxpayer is due a refund, it will be mailed to the taxpayer
regardless of whether a tax return is filed.
a. True
*b. False
11. 011: Taxpayers with self-employment income of $400 or more must
Taxpayers with self-employment income of $400 or more must file a tax
return.
*a. True
b. False
12. 012: If your spouse dies during the tax year and you do not rema
If your spouse dies during the tax year and you do not remarry, you
must file as single for the year of death.
a. True
*b. False
13. 013: Taxpayers who do not qualify for married, head of household
Taxpayers who do not qualify for married, head of household, or
surviving spouse filing status must file as single.
*a. True
b. False
14. 014: If an unmarried taxpayer paid more than half the cost of ke
If an unmarried taxpayer paid more than half the cost of keeping a home
which is the principal place of residence of a nephew who is not their
dependent, they may use the head of household filing status.
a. True
2
, Test Bank For Income Tax Fundamentals 2023 1st Edition
Chapter 1. The Individual Income Tax Return.
*b. False
15. 015: The maximum official individual income tax rate for 2022 is
The maximum official individual income tax rate for 2022 is 39.6
percent, not including the Medicare surtax on net investment income.
a. True
*b. False
16. 016: All taxpayers may use the tax rate schedule to determine th
All taxpayers may use the tax rate schedule to determine their tax
liability.
a. True
*b. False
17. 017: The head of household tax rates are higher than the rates f
The head of household tax rates are higher than the rates for a single
taxpayer.
a. True
*b. False
18. 018: Most states are community property states.
Most states are community property states.
a. True
*b. False
19. 019: If taxpayers are married and living together at the end of
If taxpayers are married and living together at the end of the year,
they must file a joint tax return.
a. True
*b. False
20. 020: A taxpayer who maintains a household with an unmarried chil
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.
a. True
*b. False
21. 021: A married person with a dependent child may choose to file
A married person with a dependent child may choose to file as head of
household if it reduces the taxpayer's tax liability.
3
Chapter 1. The Individual Income Tax Return.
Chapter 1. The Individual Income Tax Return.
1. 001: The U.S. federal tax law's sole purpose is to
The U.S. federal tax law's sole purpose is to raise revenue.
a. True
*b. False
2. 002: A corporation is a reporting entity but not a tax-paying en
A corporation is a reporting entity but not a tax-paying entity.
a. True
*b. False
3. 003: Partnership capital gains and losses are allocated separate
Partnership capital gains and losses are allocated separately to each
of the partners.
*a. True
b. False
4. 004: Married taxpayers may double their standard deduction amoun
Married taxpayers may double their standard deduction amount by filing
separate returns.
a. True
*b. False
5. 005: An item is included in gross income unless the tax law spec
An item is included in gross income unless the tax law specifies that
the item is subject to exclusion.
*a. True
b. False
6. 006: For taxpayers who do not itemize deductions, the standard d
For taxpayers who do not itemize deductions, the standard deduction
amount is subtracted from the taxpayer's adjusted gross income.
*a. True
b. False
7. 007: A taxpayer with self-employment income of $600 must file a
A taxpayer with self-employment income of $600 must file a tax return.
*a. True
b. False
1
,Test Bank For Income Tax Fundamentals 2023 1st Edition
Chapter 1. The Individual Income Tax Return.
8. 008: A dependent child with earned income in excess of the avail
A dependent child with earned income in excess of the available
standard deduction amount must file a tax return.
*a. True
b. False
9. 009: A single taxpayer, who is not a dependent on anotherâ™s re
A single taxpayer, who is not a dependent on another’s return, not
blind, and under age 65, with income of $11,800 must file a tax return.
a. True
*b. False
10. 010: If a taxpayer is due a refund, it will be mailed to the tax
If a taxpayer is due a refund, it will be mailed to the taxpayer
regardless of whether a tax return is filed.
a. True
*b. False
11. 011: Taxpayers with self-employment income of $400 or more must
Taxpayers with self-employment income of $400 or more must file a tax
return.
*a. True
b. False
12. 012: If your spouse dies during the tax year and you do not rema
If your spouse dies during the tax year and you do not remarry, you
must file as single for the year of death.
a. True
*b. False
13. 013: Taxpayers who do not qualify for married, head of household
Taxpayers who do not qualify for married, head of household, or
surviving spouse filing status must file as single.
*a. True
b. False
14. 014: If an unmarried taxpayer paid more than half the cost of ke
If an unmarried taxpayer paid more than half the cost of keeping a home
which is the principal place of residence of a nephew who is not their
dependent, they may use the head of household filing status.
a. True
2
, Test Bank For Income Tax Fundamentals 2023 1st Edition
Chapter 1. The Individual Income Tax Return.
*b. False
15. 015: The maximum official individual income tax rate for 2022 is
The maximum official individual income tax rate for 2022 is 39.6
percent, not including the Medicare surtax on net investment income.
a. True
*b. False
16. 016: All taxpayers may use the tax rate schedule to determine th
All taxpayers may use the tax rate schedule to determine their tax
liability.
a. True
*b. False
17. 017: The head of household tax rates are higher than the rates f
The head of household tax rates are higher than the rates for a single
taxpayer.
a. True
*b. False
18. 018: Most states are community property states.
Most states are community property states.
a. True
*b. False
19. 019: If taxpayers are married and living together at the end of
If taxpayers are married and living together at the end of the year,
they must file a joint tax return.
a. True
*b. False
20. 020: A taxpayer who maintains a household with an unmarried chil
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.
a. True
*b. False
21. 021: A married person with a dependent child may choose to file
A married person with a dependent child may choose to file as head of
household if it reduces the taxpayer's tax liability.
3
