,TEST BANK: INCOME
TAX
FUNDAMENTALS,
38TH EDITION,
GERALD E.
WHITTENBURG,
MARTHA ALTUS-
BULLER, STEVEN
GILL
,Chapter 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
TAX
FUNDAMENTALS,
38TH EDITION,
GERALD E.
WHITTENBURG,
MARTHA ALTUS-
BULLER, STEVEN
GILL
,Chapter 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
