,TABLE OF CONTENTS Z Z Z
1. The Individual Income Tax Return.
Z Z Z Z Z
2. Gross Income and Exclusions.
Z Z Z Z
3. Business Income and Expenses, Part I.
Z Z Z Z Z Z
4. Business Income and Expenses, Part II.
Z Z Z Z Z Z
5. Itemized Deductions and Other Incentives.
Z Z Z Z Z
6. Credits and Special Taxes.
Z Z Z Z
7. Accounting Periods and Methods and Depreciation.
Z Z Z Z Z Z
8. Capital Gains and Losses.
Z Z Z Z
9. Withholding, Estimated Payments, and Payroll Taxes.
Z Z Z Z Z Z
10. Partnership Taxation.
Z Z
11. The Corporate Income Tax.
Z Z Z Z
12. Tax Administration and Tax Planning.
Z Z Z Z Z
,Chapter 1: The Individual Income Tax Return
Z Z Z Z Z Z
1. AZcorporationZisZaZreportingZentityZbutZnotZaZtax-payingZentity.
FALSE
2. PartnershipZ capitalZ gainsZ andZlossesZ areZallocatedZ separatelyZ toZ eachZofZ theZ partners.
TRUE
3. MarriedZ taxpayersZ mayZ doubleZ theirZ standardZ deductionZ amountZ byZ filingZ separateZreturns.
FALSE
4. AnZitemZisZ notZincludedZinZ grossZincomeZunlessZ theZ taxZ lawZ specifiesZ thatZ theZitemZ isZsubjectZtoZtaxa
tion.
FALSE
5. ForZ taxpayersZ whoZ doZ notZ itemizeZ deductions,Z theZ standardZ deductionZ amountZ isZsubtractedZfr
omZtheZtaxpayer'sZadjustedZgrossZincome.
TRUE
6. AZtaxpayerZwithZself-employmentZincomeZofZ$600ZmustZfileZaZtaxZreturn.
TRUE
7. AZ dependentZ childZ withZ earnedZ incomeZ inZ excessZ ofZ theZ availableZ standardZ deductionZamountZmustZ
fileZaZtaxZreturn.
TRUE
8. AZ singleZ taxpayer,Z whoZ isZ notZ blindZ andZ whoZ isZ underZ ageZ 65,Z withZ incomeZ ofZ $8,750ZmustZfileZaZta
xZreturn.
FALSE
, 9. IfZaZtaxpayerZisZdueZaZrefund,ZitZwillZbeZmailedZtoZtheZtaxpayerZregardlessZofZwhetherZheZorZsheZfilesZaZtax
Zreturn.
FALSE
10. TaxpayersZwithZself-employmentZincomeZofZ$400ZorZmoreZmustZfileZaZtaxZreturn.
TRUE
11. IfZ yourZ spouseZ diesZ duringZ theZ taxZ yearZ andZ youZ doZ notZ remarry,Z youZ mustZ fileZ asZsingleZforZtheZ
yearZofZdeath.
FALSE
12. TaxpayersZwhoZdoZnotZqualifyZforZmarried,ZheadZofZhousehold,ZorZqualifyingZwidowZorZwidowerZfili
ngZstatusZmustZfileZasZsingle.
TRUE
13. IfZanZunmarriedZtaxpayerZpaidZmoreZthanZhalfZ theZ costZofZ keepingZ aZhomeZ whichZ isZ theZprincipalZplace
Z ofZ residenceZ ofZ aZ nephew,Z whoZ isZ notZ herZ dependent,Z sheZ mayZ useZ theZheadZofZhouseholdZfilingZstatus.
FALSE
14. TheZmaximumZofficialZindividualZincomeZtaxZrateZforZ2012ZisZ35Zpercent.
TRUE
15. AllZtaxpayersZmayZuseZtheZtaxZrateZscheduleZtoZdetermineZtheirZtaxZliability.
FALSE
16. TheZ headZofZhouseholdZtaxZratesZ areZhigherZ thanZ theZratesZ forZaZsingleZtaxpayer.
FALSE
17. MostZ statesZ areZ communityZ propertyZ states.
FALSE
1. The Individual Income Tax Return.
Z Z Z Z Z
2. Gross Income and Exclusions.
Z Z Z Z
3. Business Income and Expenses, Part I.
Z Z Z Z Z Z
4. Business Income and Expenses, Part II.
Z Z Z Z Z Z
5. Itemized Deductions and Other Incentives.
Z Z Z Z Z
6. Credits and Special Taxes.
Z Z Z Z
7. Accounting Periods and Methods and Depreciation.
Z Z Z Z Z Z
8. Capital Gains and Losses.
Z Z Z Z
9. Withholding, Estimated Payments, and Payroll Taxes.
Z Z Z Z Z Z
10. Partnership Taxation.
Z Z
11. The Corporate Income Tax.
Z Z Z Z
12. Tax Administration and Tax Planning.
Z Z Z Z Z
,Chapter 1: The Individual Income Tax Return
Z Z Z Z Z Z
1. AZcorporationZisZaZreportingZentityZbutZnotZaZtax-payingZentity.
FALSE
2. PartnershipZ capitalZ gainsZ andZlossesZ areZallocatedZ separatelyZ toZ eachZofZ theZ partners.
TRUE
3. MarriedZ taxpayersZ mayZ doubleZ theirZ standardZ deductionZ amountZ byZ filingZ separateZreturns.
FALSE
4. AnZitemZisZ notZincludedZinZ grossZincomeZunlessZ theZ taxZ lawZ specifiesZ thatZ theZitemZ isZsubjectZtoZtaxa
tion.
FALSE
5. ForZ taxpayersZ whoZ doZ notZ itemizeZ deductions,Z theZ standardZ deductionZ amountZ isZsubtractedZfr
omZtheZtaxpayer'sZadjustedZgrossZincome.
TRUE
6. AZtaxpayerZwithZself-employmentZincomeZofZ$600ZmustZfileZaZtaxZreturn.
TRUE
7. AZ dependentZ childZ withZ earnedZ incomeZ inZ excessZ ofZ theZ availableZ standardZ deductionZamountZmustZ
fileZaZtaxZreturn.
TRUE
8. AZ singleZ taxpayer,Z whoZ isZ notZ blindZ andZ whoZ isZ underZ ageZ 65,Z withZ incomeZ ofZ $8,750ZmustZfileZaZta
xZreturn.
FALSE
, 9. IfZaZtaxpayerZisZdueZaZrefund,ZitZwillZbeZmailedZtoZtheZtaxpayerZregardlessZofZwhetherZheZorZsheZfilesZaZtax
Zreturn.
FALSE
10. TaxpayersZwithZself-employmentZincomeZofZ$400ZorZmoreZmustZfileZaZtaxZreturn.
TRUE
11. IfZ yourZ spouseZ diesZ duringZ theZ taxZ yearZ andZ youZ doZ notZ remarry,Z youZ mustZ fileZ asZsingleZforZtheZ
yearZofZdeath.
FALSE
12. TaxpayersZwhoZdoZnotZqualifyZforZmarried,ZheadZofZhousehold,ZorZqualifyingZwidowZorZwidowerZfili
ngZstatusZmustZfileZasZsingle.
TRUE
13. IfZanZunmarriedZtaxpayerZpaidZmoreZthanZhalfZ theZ costZofZ keepingZ aZhomeZ whichZ isZ theZprincipalZplace
Z ofZ residenceZ ofZ aZ nephew,Z whoZ isZ notZ herZ dependent,Z sheZ mayZ useZ theZheadZofZhouseholdZfilingZstatus.
FALSE
14. TheZmaximumZofficialZindividualZincomeZtaxZrateZforZ2012ZisZ35Zpercent.
TRUE
15. AllZtaxpayersZmayZuseZtheZtaxZrateZscheduleZtoZdetermineZtheirZtaxZliability.
FALSE
16. TheZ headZofZhouseholdZtaxZratesZ areZhigherZ thanZ theZratesZ forZaZsingleZtaxpayer.
FALSE
17. MostZ statesZ areZ communityZ propertyZ states.
FALSE
