T
, AChapter 1: The Individual
Income Tax Return
1. A corporation is a reporting entity but not a tax-paying entity.
True False
2. Partnership capital gains and losses are allocated separately to each of the
partners. True False
3. Married taxpayers may double their standard deduction amount by filing
separate returns.
True False
4. An item is not included in gross income unless the tax law specifies that the
item is subject to taxation.
True False
5. For taxpayers who do not itemize deductions, the standard deduction
amount is subtracted from the taxpayer's adjusted gross income.
True False
6. A taxpayer with self-employment income of $600 must file a tax
return. True False
7. A dependent child with earned income in excess of the available standard
deduction amount must file a tax return.
True False
8. A single taxpayer, who is not blind and who is under age 65, with income of
, $8,750 must file a tax return.
True False
, 9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of
whether he or she files a tax return.
True False
10. Taxpayers with self-employment income of $400 or more must file a tax
return. True False
11. If your spouse dies during the tax year and you do not remarry, you must
file as single for the year of death.
True False
12. Taxpayers who do not qualify for married, head of household, or qualifying
widow or widower filing status must file as single.
True False
13. If an unmarried taxpayer paid more than half the cost of keeping a home which
is the principal place of residence of a nephew, who is not her dependent, she may
use the head of household filing status.
True False
14. The maximum official individual income tax rate for 2012 is 35
percent. True False
15. All taxpayers may use the tax rate schedule to determine their tax
liability. True False
16. The head of household tax rates are higher than the rates for a single
taxpayer. True False
17. Most states are community property
states. True False
, AChapter 1: The Individual
Income Tax Return
1. A corporation is a reporting entity but not a tax-paying entity.
True False
2. Partnership capital gains and losses are allocated separately to each of the
partners. True False
3. Married taxpayers may double their standard deduction amount by filing
separate returns.
True False
4. An item is not included in gross income unless the tax law specifies that the
item is subject to taxation.
True False
5. For taxpayers who do not itemize deductions, the standard deduction
amount is subtracted from the taxpayer's adjusted gross income.
True False
6. A taxpayer with self-employment income of $600 must file a tax
return. True False
7. A dependent child with earned income in excess of the available standard
deduction amount must file a tax return.
True False
8. A single taxpayer, who is not blind and who is under age 65, with income of
, $8,750 must file a tax return.
True False
, 9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of
whether he or she files a tax return.
True False
10. Taxpayers with self-employment income of $400 or more must file a tax
return. True False
11. If your spouse dies during the tax year and you do not remarry, you must
file as single for the year of death.
True False
12. Taxpayers who do not qualify for married, head of household, or qualifying
widow or widower filing status must file as single.
True False
13. If an unmarried taxpayer paid more than half the cost of keeping a home which
is the principal place of residence of a nephew, who is not her dependent, she may
use the head of household filing status.
True False
14. The maximum official individual income tax rate for 2012 is 35
percent. True False
15. All taxpayers may use the tax rate schedule to determine their tax
liability. True False
16. The head of household tax rates are higher than the rates for a single
taxpayer. True False
17. Most states are community property
states. True False
