TEST BANK: INCOME
nn nn
TAX
FUNDAMENTALS,
nn
38TH EDITION,
nn nn
GERALD E.
nn nn
WHITTENBURG,
nn
MARTHA ALTUS-
nn nn
BULLER, STEVEN
nn nn
GILL
nn
,Chapter 1: The Individual Income Tax Return
nn nn nn nn nn nn
1. A nncorporation nnis nna nnreporting nnentity nnbut nnnot nna nntax-paying
nnentity. nnTrue False
2. Partnership nncapital nngains nnand nnlosses nnare nnallocated nnseparately nnto nneach nnof nnthe
nnpartners. nnTrue False
3. Married nntaxpayers nnmay nndouble nntheir nnstandard nndeduction nnamount nnby nnfiling
nnseparate nnreturns.
True False
4. An nnitem nnis nnnot nnincluded nnin nngross nnincome nnunless nnthe nntax nnlaw nnspecifies nnthat
nnthe nnitem nnis nnsubject nnto nntaxation.
True False
5. For nntaxpayers nnwho nndo nnnot nnitemize nndeductions, nnthe nnstandard nndeduction
nnamount nnis nnsubtracted nnfrom nnthe nntaxpayer's nnadjusted nngross nnincome.
True False
6. A nntaxpayer nnwith nnself-employment nnincome nnof nn$600 nnmust nnfile nna
nntax nnreturn. nnTrue False
7. A nndependent nnchild nnwith nnearned nnincome nnin nnexcess nnof nnthe nnavailable nnstandard
nndeduction nnamount nnmust nnfile nna nntax nnreturn.
True False
8. A nnsingle nntaxpayer, nnwho nnis nnnot nnblind nnand nnwho nnis nnunder nnage nn65, nnwith
nnincome nnof nn$8,750 nnmust nnfile nna nntax nnreturn.
True False
,9. If nna nntaxpayer nnis nndue nna nnrefund, nnit nnwill nnbe nnmailed nnto nnthe nntaxpayer nnregardless
nnof nnwhether nnhe nnor nnshe nnfiles nn a nntax nn return.
True False
10. Taxpayers nnwith nnself-employment nnincome nnof nn$400 nnor nnmore nnmust nnfile nna
nntax nnreturn. nnTrue False
11. If nnyour nnspouse nndies nnduring nnthe nntax nnyear nnand nnyou nndo nnnot nnremarry, nnyou
nnmust nnfile nnas nnsingle nnfor nnthe nnyear nnof nndeath.
True False
12. Taxpayers nnwho nndo nnnot nnqualify nnfor nnmarried, nnhead nnof nnhousehold, nnor nnqualifying
nnwidow nnor nnwidower nnfiling nnstatus nnmust nnfile nnas nnsingle.
True False
13. If nnan nnunmarried nntaxpayer nnpaid nnmore nnthan nnhalf nnthe nncost nnof nnkeeping nna nnhome
nnwhich nnis nnthe nnprincipal nnplace nnof nnresidence nnof nna nnnephew, nnwho nnis nnnot nnher
nndependent, nnshe nnmay nnuse nnthe n n head nnof nnhousehold nnfiling nnstatus.
True False
14. The nnmaximum nnofficial nnindividual nnincome nntax nnrate nnfor nn2012 nnis nn35
nnpercent. nnTrue False
15. All nntaxpayers nnmay nnuse nnthe nntax nnrate nnschedule nnto nndetermine nntheir nntax
nnliability. nnTrue False
16. The nnhead nnof nnhousehold nntax nnrates nnare nnhigher nnthan nnthe nnrates nnfor nna
nnsingle nntaxpayer. nnTrue False
17. Most nnstates nnare nncommunity nnproperty
nnstates. nnTrue False
, 18. If nntaxpayers nnare nnmarried nnand nnliving nntogether nnat nnthe nnend nnof nnthe nnyear, nnthey
nnmust nnfile nna nnjoint nntax nnreturn.
True False
19. A nntaxpayer nnwho nnmaintains nna nnhousehold nnwith nnan nnunmarried nnchild nnmay nnqualify
nnto nnfile nnas nnhead nnof nnhousehold nneven nnif nnthe nnchild nnis nnnot nnthe nntaxpayer's
nndependent.
True False
20. A nnmarried nnperson nnwith nna nndependent nnchild nnmay nnchoose nnto nnfile nnas nnhead nnof
nnhousehold nnif nnit nnreduces nnhis nnor nnher nntax nnliability.
True False
21. A nntaxpayer nnwho nnis nnliving nnalone nnand nnis nnlegally nnseparated nnfrom nnhis nnor nnher
nnspouse nnunder nna nnseparate nnmaintenance nndecree nnat nnyear-end nnshould nnfile nnas nnsingle.
True False
22. An nnindividual, nnage nn22, nnenrolled nnon nna nnfull-time nnbasis nnat nna nntrade nnschool, nnis
nnconsidered nna nnstudent nnfor nnpurposes nnof nndetermining nnwhether nna nndependency
nnexemption nnis nnpermitted. nnTrue False
23. A nndependency nnexemption nnmay nnbe nnclaimed nnby nnthe nnsupporting nntaxpayer nnin
nnthe nnyear nnof nndeath nnof nna nndependent.
True False
24. For nn2012, nnpersonal nnand nndependency nnexemptions nnare nn$3,800
nneach. nnTrue False
25. Scholarships nnreceived nnby nna nnstudent nnmay nnbe nnexcluded nnfor nnpurposes nnof nnthe
nnsupport nntest nnfor nndetermining nnthe nnavailability nnof nnthe nndependency nnexemption.
True False
nn nn
TAX
FUNDAMENTALS,
nn
38TH EDITION,
nn nn
GERALD E.
nn nn
WHITTENBURG,
nn
MARTHA ALTUS-
nn nn
BULLER, STEVEN
nn nn
GILL
nn
,Chapter 1: The Individual Income Tax Return
nn nn nn nn nn nn
1. A nncorporation nnis nna nnreporting nnentity nnbut nnnot nna nntax-paying
nnentity. nnTrue False
2. Partnership nncapital nngains nnand nnlosses nnare nnallocated nnseparately nnto nneach nnof nnthe
nnpartners. nnTrue False
3. Married nntaxpayers nnmay nndouble nntheir nnstandard nndeduction nnamount nnby nnfiling
nnseparate nnreturns.
True False
4. An nnitem nnis nnnot nnincluded nnin nngross nnincome nnunless nnthe nntax nnlaw nnspecifies nnthat
nnthe nnitem nnis nnsubject nnto nntaxation.
True False
5. For nntaxpayers nnwho nndo nnnot nnitemize nndeductions, nnthe nnstandard nndeduction
nnamount nnis nnsubtracted nnfrom nnthe nntaxpayer's nnadjusted nngross nnincome.
True False
6. A nntaxpayer nnwith nnself-employment nnincome nnof nn$600 nnmust nnfile nna
nntax nnreturn. nnTrue False
7. A nndependent nnchild nnwith nnearned nnincome nnin nnexcess nnof nnthe nnavailable nnstandard
nndeduction nnamount nnmust nnfile nna nntax nnreturn.
True False
8. A nnsingle nntaxpayer, nnwho nnis nnnot nnblind nnand nnwho nnis nnunder nnage nn65, nnwith
nnincome nnof nn$8,750 nnmust nnfile nna nntax nnreturn.
True False
,9. If nna nntaxpayer nnis nndue nna nnrefund, nnit nnwill nnbe nnmailed nnto nnthe nntaxpayer nnregardless
nnof nnwhether nnhe nnor nnshe nnfiles nn a nntax nn return.
True False
10. Taxpayers nnwith nnself-employment nnincome nnof nn$400 nnor nnmore nnmust nnfile nna
nntax nnreturn. nnTrue False
11. If nnyour nnspouse nndies nnduring nnthe nntax nnyear nnand nnyou nndo nnnot nnremarry, nnyou
nnmust nnfile nnas nnsingle nnfor nnthe nnyear nnof nndeath.
True False
12. Taxpayers nnwho nndo nnnot nnqualify nnfor nnmarried, nnhead nnof nnhousehold, nnor nnqualifying
nnwidow nnor nnwidower nnfiling nnstatus nnmust nnfile nnas nnsingle.
True False
13. If nnan nnunmarried nntaxpayer nnpaid nnmore nnthan nnhalf nnthe nncost nnof nnkeeping nna nnhome
nnwhich nnis nnthe nnprincipal nnplace nnof nnresidence nnof nna nnnephew, nnwho nnis nnnot nnher
nndependent, nnshe nnmay nnuse nnthe n n head nnof nnhousehold nnfiling nnstatus.
True False
14. The nnmaximum nnofficial nnindividual nnincome nntax nnrate nnfor nn2012 nnis nn35
nnpercent. nnTrue False
15. All nntaxpayers nnmay nnuse nnthe nntax nnrate nnschedule nnto nndetermine nntheir nntax
nnliability. nnTrue False
16. The nnhead nnof nnhousehold nntax nnrates nnare nnhigher nnthan nnthe nnrates nnfor nna
nnsingle nntaxpayer. nnTrue False
17. Most nnstates nnare nncommunity nnproperty
nnstates. nnTrue False
, 18. If nntaxpayers nnare nnmarried nnand nnliving nntogether nnat nnthe nnend nnof nnthe nnyear, nnthey
nnmust nnfile nna nnjoint nntax nnreturn.
True False
19. A nntaxpayer nnwho nnmaintains nna nnhousehold nnwith nnan nnunmarried nnchild nnmay nnqualify
nnto nnfile nnas nnhead nnof nnhousehold nneven nnif nnthe nnchild nnis nnnot nnthe nntaxpayer's
nndependent.
True False
20. A nnmarried nnperson nnwith nna nndependent nnchild nnmay nnchoose nnto nnfile nnas nnhead nnof
nnhousehold nnif nnit nnreduces nnhis nnor nnher nntax nnliability.
True False
21. A nntaxpayer nnwho nnis nnliving nnalone nnand nnis nnlegally nnseparated nnfrom nnhis nnor nnher
nnspouse nnunder nna nnseparate nnmaintenance nndecree nnat nnyear-end nnshould nnfile nnas nnsingle.
True False
22. An nnindividual, nnage nn22, nnenrolled nnon nna nnfull-time nnbasis nnat nna nntrade nnschool, nnis
nnconsidered nna nnstudent nnfor nnpurposes nnof nndetermining nnwhether nna nndependency
nnexemption nnis nnpermitted. nnTrue False
23. A nndependency nnexemption nnmay nnbe nnclaimed nnby nnthe nnsupporting nntaxpayer nnin
nnthe nnyear nnof nndeath nnof nna nndependent.
True False
24. For nn2012, nnpersonal nnand nndependency nnexemptions nnare nn$3,800
nneach. nnTrue False
25. Scholarships nnreceived nnby nna nnstudent nnmay nnbe nnexcluded nnfor nnpurposes nnof nnthe
nnsupport nntest nnfor nndetermining nnthe nnavailability nnof nnthe nndependency nnexemption.
True False
