TESTBANK:
n
INCOME
n
TAX
FUNDAMENTAL
n
S, 38TH EDITION,
n n
GERALD E.
n n
WHITTENBURG,
n
MARTHA
n
ALTUS- BULLER,
n n
,STEVEN GILL
n n
,Chapter 1: The Individual Income Tax Return
n n n n n n
1. A ncorporation nis na nreporting nentity nbut nnot na ntax-paying
nentity. nTrue False
2. Partnership ncapital ngains nand nlosses nare nallocated nseparately nto neach nof nthe
npartners. nTrue False
3. Married ntaxpayers nmay ndouble ntheir nstandard ndeduction namount nby nfiling
n separate nreturns.
True False
4. An nitem nis nnot nincluded nin ngross nincome nunless nthe ntax nlaw nspecifies nthat nthe
nitem nis nsubject n to n taxation.
True False
5. For ntaxpayers nwho ndo nnot nitemize ndeductions, nthe nstandard ndeduction
n amount nis n subtracted nfrom n the n taxpayer's n adjusted ngross nincome.
True False
6. A ntaxpayer nwith nself-employment nincome nof n$600 nmust nfile na ntax
nreturn. n True False
7. A ndependent nchild nwith nearned nincome nin nexcess nof nthe navailable nstandard
ndeduction n amount n must nfile n a n tax nreturn.
True False
8. A nsingle ntaxpayer, nwho nis nnot nblind nand nwho nis nunder nage n65, nwith nincome nof
n $8,750 n must nfile n a n tax nreturn.
True False
, 9. If na ntaxpayer nis ndue na nrefund, nit nwill nbe nmailed nto nthe ntaxpayer nregardless nof
nwhether nhe n or nshe nfiles na ntax nreturn.
True False
10. Taxpayers nwith nself-employment nincome nof n$400 nor nmore nmust nfile na ntax
nreturn. n True False
11. If nyour nspouse ndies nduring nthe ntax nyear nand nyou ndo nnot nremarry, nyou nmust
nfile n as n single nfor n the nyear n of ndeath.
True False
12. Taxpayers nwho ndo nnot nqualify nfor nmarried, nhead nof nhousehold, nor nqualifying
nwidow n or n widower nfiling n status n must nfile n as n single.
True False
13. If nan nunmarried ntaxpayer npaid nmore nthan nhalf nthe ncost nof nkeeping na nhome nwhich
nis n the n principal nplace n of nresidence n of n a nnephew, nwho nis nnot nher ndependent, n she n may
nuse n the n head n of nhousehold nfiling nstatus.
True False
14. The nmaximum nofficial nindividual nincome ntax nrate nfor n2012 nis n35
npercent. n True False
15. All ntaxpayers nmay nuse nthe ntax nrate nschedule nto ndetermine ntheir ntax
nliability. nTrue False
16. The nhead nof nhousehold ntax nrates nare nhigher nthan nthe nrates nfor na nsingle
n taxpayer. nTrue False
17. Most nstates nare ncommunity nproperty
n states. nTrue False
n
INCOME
n
TAX
FUNDAMENTAL
n
S, 38TH EDITION,
n n
GERALD E.
n n
WHITTENBURG,
n
MARTHA
n
ALTUS- BULLER,
n n
,STEVEN GILL
n n
,Chapter 1: The Individual Income Tax Return
n n n n n n
1. A ncorporation nis na nreporting nentity nbut nnot na ntax-paying
nentity. nTrue False
2. Partnership ncapital ngains nand nlosses nare nallocated nseparately nto neach nof nthe
npartners. nTrue False
3. Married ntaxpayers nmay ndouble ntheir nstandard ndeduction namount nby nfiling
n separate nreturns.
True False
4. An nitem nis nnot nincluded nin ngross nincome nunless nthe ntax nlaw nspecifies nthat nthe
nitem nis nsubject n to n taxation.
True False
5. For ntaxpayers nwho ndo nnot nitemize ndeductions, nthe nstandard ndeduction
n amount nis n subtracted nfrom n the n taxpayer's n adjusted ngross nincome.
True False
6. A ntaxpayer nwith nself-employment nincome nof n$600 nmust nfile na ntax
nreturn. n True False
7. A ndependent nchild nwith nearned nincome nin nexcess nof nthe navailable nstandard
ndeduction n amount n must nfile n a n tax nreturn.
True False
8. A nsingle ntaxpayer, nwho nis nnot nblind nand nwho nis nunder nage n65, nwith nincome nof
n $8,750 n must nfile n a n tax nreturn.
True False
, 9. If na ntaxpayer nis ndue na nrefund, nit nwill nbe nmailed nto nthe ntaxpayer nregardless nof
nwhether nhe n or nshe nfiles na ntax nreturn.
True False
10. Taxpayers nwith nself-employment nincome nof n$400 nor nmore nmust nfile na ntax
nreturn. n True False
11. If nyour nspouse ndies nduring nthe ntax nyear nand nyou ndo nnot nremarry, nyou nmust
nfile n as n single nfor n the nyear n of ndeath.
True False
12. Taxpayers nwho ndo nnot nqualify nfor nmarried, nhead nof nhousehold, nor nqualifying
nwidow n or n widower nfiling n status n must nfile n as n single.
True False
13. If nan nunmarried ntaxpayer npaid nmore nthan nhalf nthe ncost nof nkeeping na nhome nwhich
nis n the n principal nplace n of nresidence n of n a nnephew, nwho nis nnot nher ndependent, n she n may
nuse n the n head n of nhousehold nfiling nstatus.
True False
14. The nmaximum nofficial nindividual nincome ntax nrate nfor n2012 nis n35
npercent. n True False
15. All ntaxpayers nmay nuse nthe ntax nrate nschedule nto ndetermine ntheir ntax
nliability. nTrue False
16. The nhead nof nhousehold ntax nrates nare nhigher nthan nthe nrates nfor na nsingle
n taxpayer. nTrue False
17. Most nstates nare ncommunity nproperty
n states. nTrue False
