,TABLE OF CONTENTS x x x
1. The Individual Income Tax Return.
x x x x x
2. Gross Income and Exclusions.
x x x x
3. Business Income and Expenses, Part I.
x x x x x x
4. Business Income and Expenses, Part II.
x x x x x x
5. Itemized Deductions and Other Incentives.
x x x x x
6. Credits and Special Taxes.
x x x x
7. Accounting Periods and Methods and Depreciation.
x x x x x x
8. Capital Gains and Losses.
x x x x
9. Withholding, Estimated Payments, and Payroll Taxes.
x x x x x x
10. Partnership Taxation.
x x
11. The Corporate Income Tax.
x x x x
12. Tax Administration and Tax Planning.
x x x x x
,Chapter 1: The Individual Income Tax Return
x x x x x x
1. Axcorporationxisxaxreportingxentityxbutxnotxaxtax-payingxentity.
FALSE
2. Partnershipxcapitalxgainsxandxlossesxarexallocatedxseparatelyx toxeachxofxthexpartners.
TRUE
3. Marriedx taxpayersx mayx doublex theirx standardx deductionx amountx byx filingx separatexreturns.
FALSE
4. Anxitemxisxnotxincludedxinxgrossxincomexunlessx thex taxx lawxspecifiesx thatx thexitemxisxsubjectxtoxta
xation.
FALSE
5. Forxtaxpayersx whoxdox notx itemizexdeductions,xthexstandardx deductionx amountxisxsubtractedxf
romxthextaxpayer'sxadjustedxgrossxincome.
TRUE
6. Axtaxpayerxwithxself-employmentxincomexofx$600xmustxfilexaxtaxxreturn.
TRUE
7. Axdependentxchildx withxearnedxincomex inxexcessxofxthexavailablexstandardx deductionxamountxmus
txfilexaxtaxxreturn.
TRUE
8. Axsinglextaxpayer,x whox isx notx blindx andx whox isxunderxagex65,x withx incomex ofx $8,750xmustxfilexaxt
axxreturn.
FALSE
, 9. Ifxaxtaxpayerxisxduexaxrefund,xitxwillxbexmailedxtoxthextaxpayerxregardlessxofxwhetherxhexorxshexfilesxaxt
axxreturn.
FALSE
10. Taxpayersxwithxself-employmentxincomexofx$400xorxmorexmustxfilexaxtaxxreturn.
TRUE
11. Ifx yourx spousexdiesx duringx thex taxxyearx andx youxdoxnotx remarry,x youx mustxfilex asxsinglexforxth
exyearxofxdeath.
FALSE
12. Taxpayersxwhoxdoxnotxqualifyxforxmarried,xheadxofxhousehold,xorxqualifyingxwidowxorxwidowerxfi
lingxstatusxmustxfilexasxsingle.
TRUE
13. Ifxanxunmarriedxtaxpayerxpaidxmorexthanxhalfxthexcostxofxkeepingxaxhomex whichxisxthexprincipalxpla
cexofxresidencexofxaxnephew,x whoxisxnotxherxdependent,xshexmayxusexthexheadxofxhouseholdxfilingxstatus.
FALSE
14. Thexmaximumxofficialxindividualxincomextaxxratexforx2012xisx35xpercent.
TRUE
15. Allxtaxpayersxmayxusexthextaxxratexschedulextoxdeterminextheirxtaxxliability.
FALSE
16. Thexheadxofxhouseholdxtaxxratesxarexhigherx thanxthexratesxforxaxsinglextaxpayer.
FALSE
17. Mostx statesx arex communityx propertyx states.
FALSE
1. The Individual Income Tax Return.
x x x x x
2. Gross Income and Exclusions.
x x x x
3. Business Income and Expenses, Part I.
x x x x x x
4. Business Income and Expenses, Part II.
x x x x x x
5. Itemized Deductions and Other Incentives.
x x x x x
6. Credits and Special Taxes.
x x x x
7. Accounting Periods and Methods and Depreciation.
x x x x x x
8. Capital Gains and Losses.
x x x x
9. Withholding, Estimated Payments, and Payroll Taxes.
x x x x x x
10. Partnership Taxation.
x x
11. The Corporate Income Tax.
x x x x
12. Tax Administration and Tax Planning.
x x x x x
,Chapter 1: The Individual Income Tax Return
x x x x x x
1. Axcorporationxisxaxreportingxentityxbutxnotxaxtax-payingxentity.
FALSE
2. Partnershipxcapitalxgainsxandxlossesxarexallocatedxseparatelyx toxeachxofxthexpartners.
TRUE
3. Marriedx taxpayersx mayx doublex theirx standardx deductionx amountx byx filingx separatexreturns.
FALSE
4. Anxitemxisxnotxincludedxinxgrossxincomexunlessx thex taxx lawxspecifiesx thatx thexitemxisxsubjectxtoxta
xation.
FALSE
5. Forxtaxpayersx whoxdox notx itemizexdeductions,xthexstandardx deductionx amountxisxsubtractedxf
romxthextaxpayer'sxadjustedxgrossxincome.
TRUE
6. Axtaxpayerxwithxself-employmentxincomexofx$600xmustxfilexaxtaxxreturn.
TRUE
7. Axdependentxchildx withxearnedxincomex inxexcessxofxthexavailablexstandardx deductionxamountxmus
txfilexaxtaxxreturn.
TRUE
8. Axsinglextaxpayer,x whox isx notx blindx andx whox isxunderxagex65,x withx incomex ofx $8,750xmustxfilexaxt
axxreturn.
FALSE
, 9. Ifxaxtaxpayerxisxduexaxrefund,xitxwillxbexmailedxtoxthextaxpayerxregardlessxofxwhetherxhexorxshexfilesxaxt
axxreturn.
FALSE
10. Taxpayersxwithxself-employmentxincomexofx$400xorxmorexmustxfilexaxtaxxreturn.
TRUE
11. Ifx yourx spousexdiesx duringx thex taxxyearx andx youxdoxnotx remarry,x youx mustxfilex asxsinglexforxth
exyearxofxdeath.
FALSE
12. Taxpayersxwhoxdoxnotxqualifyxforxmarried,xheadxofxhousehold,xorxqualifyingxwidowxorxwidowerxfi
lingxstatusxmustxfilexasxsingle.
TRUE
13. Ifxanxunmarriedxtaxpayerxpaidxmorexthanxhalfxthexcostxofxkeepingxaxhomex whichxisxthexprincipalxpla
cexofxresidencexofxaxnephew,x whoxisxnotxherxdependent,xshexmayxusexthexheadxofxhouseholdxfilingxstatus.
FALSE
14. Thexmaximumxofficialxindividualxincomextaxxratexforx2012xisx35xpercent.
TRUE
15. Allxtaxpayersxmayxusexthextaxxratexschedulextoxdeterminextheirxtaxxliability.
FALSE
16. Thexheadxofxhouseholdxtaxxratesxarexhigherx thanxthexratesxforxaxsinglextaxpayer.
FALSE
17. Mostx statesx arex communityx propertyx states.
FALSE
