,TABLE OF CONTENTS Y Y Y
1. The Individual Income Tax Return.
Y Y Y Y Y
2. Gross Income and Exclusions.
Y Y Y Y
3. Business Income and Expenses, Part I.
Y Y Y Y Y Y
4. Business Income and Expenses, Part II.
Y Y Y Y Y Y
5. Itemized Deductions and Other Incentives.
Y Y Y Y Y
6. Credits and Special Taxes.
Y Y Y Y
7. Accounting Periods and Methods and Depreciation.
Y Y Y Y Y Y
8. Capital Gains and Losses.
Y Y Y Y
9. Withholding, Estimated Payments, and Payroll Taxes.
Y Y Y Y Y Y
10. Partnership Taxation.
Y Y
11. The Corporate Income Tax.
Y Y Y Y
12. Tax Administration and Tax Planning.
Y Y Y Y Y
,Chapter 1: The Individual Income Tax Return
Y Y Y Y Y Y
1. AYcorporationYisYaYreportingYentityYbutYnotYaYtax-payingYentity.
FALSE
2. PartnershipY capitalY gainsY andYlossesY areYallocatedY separatelyY toY eachYofY theY partners.
TRUE
3. MarriedY taxpayersY mayY doubleY theirY standardY deductionY amountY byY filingY separateYreturns.
FALSE
4. AnYitemY isY notYincludedYinY grossYincomeYunlessY theY taxY lawY specifiesY thatY theYitemY isYsubjec
tYtoYtaxation.
FALSE
5. ForY taxpayersY whoY doY notY itemizeY deductions,Y theY standardY deductionY amountY isYsubtract
edYfromYtheYtaxpayer'sYadjustedYgrossYincome.
TRUE
6. AYtaxpayerYwithYself-employmentYincomeYofY$600YmustYfileYaYtaxYreturn.
TRUE
7. AY dependentY childY withY earnedY incomeY inY excessY ofY theY availableY standardY deductionYamount
YmustYfileYaYtaxYreturn.
TRUE
8. AY singleY taxpayer,Y whoY isY notY blindY andY whoY isY underY ageY 65,Y withY incomeY ofY $8,750Ymust
YfileYaYtaxYreturn.
FALSE
, 9. IfYaYtaxpayerYisYdueYaYrefund,YitYwillYbeYmailedYtoYtheYtaxpayerYregardlessYofYwhetherYheYorYsheY
filesYaYtaxYreturn.
FALSE
10. TaxpayersYwithYself-employmentYincomeYofY$400YorYmoreYmustYfileYaYtaxYreturn.
TRUE
11. IfY yourY spouseY diesY duringY theY taxY yearY andY youY doY notY remarry,Y youY mustY fileY asYsingl
eYforYtheYyearYofYdeath.
FALSE
12. TaxpayersYwhoYdoYnotYqualifyYforYmarried,YheadYofYhousehold,YorYqualifyingYwidowYorYwido
werYfilingYstatusYmustYfileYasYsingle.
TRUE
13. IfYanYunmarriedYtaxpayerYpaidYmoreYthanYhalfY theY costYofY keepingY aYhomeY whichYisY theYprincip
alYplaceYofYresidenceYofYaYnephew,Y whoYisYnotY herYdependent,Y sheYmayYuseYtheYheadYofYhousehold
YfilingYstatus.
FALSE
14. TheYmaximumYofficialYindividualYincomeY taxYrateYforY2012YisY35Ypercent.
TRUE
15. AllYtaxpayersYmayYuseYtheYtaxYrateYscheduleYtoYdetermineYtheirYtaxYliability.
FALSE
16. TheY headYofYhouseholdYtaxYratesY areYhigherYthanY theYratesY forYaYsingleYtaxpayer.
FALSE
17. MostY statesY areY communityY propertyY states.
FALSE
1. The Individual Income Tax Return.
Y Y Y Y Y
2. Gross Income and Exclusions.
Y Y Y Y
3. Business Income and Expenses, Part I.
Y Y Y Y Y Y
4. Business Income and Expenses, Part II.
Y Y Y Y Y Y
5. Itemized Deductions and Other Incentives.
Y Y Y Y Y
6. Credits and Special Taxes.
Y Y Y Y
7. Accounting Periods and Methods and Depreciation.
Y Y Y Y Y Y
8. Capital Gains and Losses.
Y Y Y Y
9. Withholding, Estimated Payments, and Payroll Taxes.
Y Y Y Y Y Y
10. Partnership Taxation.
Y Y
11. The Corporate Income Tax.
Y Y Y Y
12. Tax Administration and Tax Planning.
Y Y Y Y Y
,Chapter 1: The Individual Income Tax Return
Y Y Y Y Y Y
1. AYcorporationYisYaYreportingYentityYbutYnotYaYtax-payingYentity.
FALSE
2. PartnershipY capitalY gainsY andYlossesY areYallocatedY separatelyY toY eachYofY theY partners.
TRUE
3. MarriedY taxpayersY mayY doubleY theirY standardY deductionY amountY byY filingY separateYreturns.
FALSE
4. AnYitemY isY notYincludedYinY grossYincomeYunlessY theY taxY lawY specifiesY thatY theYitemY isYsubjec
tYtoYtaxation.
FALSE
5. ForY taxpayersY whoY doY notY itemizeY deductions,Y theY standardY deductionY amountY isYsubtract
edYfromYtheYtaxpayer'sYadjustedYgrossYincome.
TRUE
6. AYtaxpayerYwithYself-employmentYincomeYofY$600YmustYfileYaYtaxYreturn.
TRUE
7. AY dependentY childY withY earnedY incomeY inY excessY ofY theY availableY standardY deductionYamount
YmustYfileYaYtaxYreturn.
TRUE
8. AY singleY taxpayer,Y whoY isY notY blindY andY whoY isY underY ageY 65,Y withY incomeY ofY $8,750Ymust
YfileYaYtaxYreturn.
FALSE
, 9. IfYaYtaxpayerYisYdueYaYrefund,YitYwillYbeYmailedYtoYtheYtaxpayerYregardlessYofYwhetherYheYorYsheY
filesYaYtaxYreturn.
FALSE
10. TaxpayersYwithYself-employmentYincomeYofY$400YorYmoreYmustYfileYaYtaxYreturn.
TRUE
11. IfY yourY spouseY diesY duringY theY taxY yearY andY youY doY notY remarry,Y youY mustY fileY asYsingl
eYforYtheYyearYofYdeath.
FALSE
12. TaxpayersYwhoYdoYnotYqualifyYforYmarried,YheadYofYhousehold,YorYqualifyingYwidowYorYwido
werYfilingYstatusYmustYfileYasYsingle.
TRUE
13. IfYanYunmarriedYtaxpayerYpaidYmoreYthanYhalfY theY costYofY keepingY aYhomeY whichYisY theYprincip
alYplaceYofYresidenceYofYaYnephew,Y whoYisYnotY herYdependent,Y sheYmayYuseYtheYheadYofYhousehold
YfilingYstatus.
FALSE
14. TheYmaximumYofficialYindividualYincomeY taxYrateYforY2012YisY35Ypercent.
TRUE
15. AllYtaxpayersYmayYuseYtheYtaxYrateYscheduleYtoYdetermineYtheirYtaxYliability.
FALSE
16. TheY headYofYhouseholdYtaxYratesY areYhigherYthanY theYratesY forYaYsingleYtaxpayer.
FALSE
17. MostY statesY areY communityY propertyY states.
FALSE
