TEST BANK: INCOME
hf
Test Bank For Income Tax Fundamentals 38th edition gerald e
whittenburg martha altus buller All Chapters Covered With
Questions And Guided Complete Solutions.
DAMENTA
LS,
,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. Ifuautaxpayeruisudueuaurefund,uituwillubeumailedutoutheutaxpayeruregardlessuofuwhetheruh
euorusheufilesuautaxureturn.
True False
10. Taxpayersuwithuself-
employmentuincomeuofu$400uorumoreumustufileuautaxureturn.uTrue False
11. Ifuyouruspouseudiesuduringutheutaxuyearuanduyouudounoturemarry,uyouumustufileuasu
singleuforutheuyearuofudeath.
True False
12. Taxpayersuwhoudounotuqualifyuforumarried,uheaduofuhousehold,uoruqualifyinguwidowuo
ruwidowerufilingustatusumustufileuasusingle.
True False
13. Ifuanuunmarriedutaxpayerupaidumoreuthanuhalfutheucostuofukeepinguauhomeuwhichuisuthe
uprincipaluplaceuofuresidenceuofuaunephew,uwhouisunotuherudependent, usheumayuuseutheu he
aduofuhouseholdufilingustatus.
True False
14. Theumaximumuofficialuindividualuincomeutaxurateuforu2012uisu35upercent.
uTrue False
15. Allutaxpayersumayuuseutheutaxurateuscheduleutoudetermineutheirutaxuliability.
uTrue False
16. Theuheaduofuhouseholdutaxuratesuareuhigheruthanutheuratesuforuausingleutaxpayer.
uTrue False
17. Mostustatesuareucommunityupropertyustates.u
True False
, 18. Ifutaxpayersuareumarrieduandulivingutogetheruatutheuenduofutheuyear,utheyumustufileua
ujointutaxureturn.
True False
19. Autaxpayeruwhoumaintainsuauhouseholduwithuanuunmarrieduchildumayuqualifyutoufileuasu
headuofuhouseholduevenuifutheuchilduisunotutheutaxpayer'sudependent.
True False
20. Aumarriedupersonuwithuaudependentuchildumayuchooseutoufileuasuheaduofuhouseholduifuit
ureducesuhisuoruherutaxuliability.
True False
21. Autaxpayeruwhouisulivingualoneuanduisulegallyuseparatedufromuhisuoruheruspouseuunderuau
separateumaintenanceudecreeuatuyear-endushouldufileuasusingle.
True False
22. Anuindividual,uageu22,uenrolleduonuaufull-
timeubasisuatuautradeuschool,uisuconsidereduaustudentuforupurposesuofudetermininguwheth
eruaudependencyuexemptionuisupermitted.uTrue False
23. Audependencyuexemptionumayubeuclaimedubyutheusupportingutaxpayeruinutheuyearuofu
deathuofuaudependent.
True False
24. Foru2012,upersonaluandudependencyuexemptionsuareu$3,800ueach.u
True False
25. Scholarshipsureceivedubyuaustudentumayubeuexcludeduforupurposesuofutheusupportutestu
forudeterminingutheuavailabilityuofutheudependencyuexemption.
True False
hf
Test Bank For Income Tax Fundamentals 38th edition gerald e
whittenburg martha altus buller All Chapters Covered With
Questions And Guided Complete Solutions.
DAMENTA
LS,
,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. Ifuautaxpayeruisudueuaurefund,uituwillubeumailedutoutheutaxpayeruregardlessuofuwhetheruh
euorusheufilesuautaxureturn.
True False
10. Taxpayersuwithuself-
employmentuincomeuofu$400uorumoreumustufileuautaxureturn.uTrue False
11. Ifuyouruspouseudiesuduringutheutaxuyearuanduyouudounoturemarry,uyouumustufileuasu
singleuforutheuyearuofudeath.
True False
12. Taxpayersuwhoudounotuqualifyuforumarried,uheaduofuhousehold,uoruqualifyinguwidowuo
ruwidowerufilingustatusumustufileuasusingle.
True False
13. Ifuanuunmarriedutaxpayerupaidumoreuthanuhalfutheucostuofukeepinguauhomeuwhichuisuthe
uprincipaluplaceuofuresidenceuofuaunephew,uwhouisunotuherudependent, usheumayuuseutheu he
aduofuhouseholdufilingustatus.
True False
14. Theumaximumuofficialuindividualuincomeutaxurateuforu2012uisu35upercent.
uTrue False
15. Allutaxpayersumayuuseutheutaxurateuscheduleutoudetermineutheirutaxuliability.
uTrue False
16. Theuheaduofuhouseholdutaxuratesuareuhigheruthanutheuratesuforuausingleutaxpayer.
uTrue False
17. Mostustatesuareucommunityupropertyustates.u
True False
, 18. Ifutaxpayersuareumarrieduandulivingutogetheruatutheuenduofutheuyear,utheyumustufileua
ujointutaxureturn.
True False
19. Autaxpayeruwhoumaintainsuauhouseholduwithuanuunmarrieduchildumayuqualifyutoufileuasu
headuofuhouseholduevenuifutheuchilduisunotutheutaxpayer'sudependent.
True False
20. Aumarriedupersonuwithuaudependentuchildumayuchooseutoufileuasuheaduofuhouseholduifuit
ureducesuhisuoruherutaxuliability.
True False
21. Autaxpayeruwhouisulivingualoneuanduisulegallyuseparatedufromuhisuoruheruspouseuunderuau
separateumaintenanceudecreeuatuyear-endushouldufileuasusingle.
True False
22. Anuindividual,uageu22,uenrolleduonuaufull-
timeubasisuatuautradeuschool,uisuconsidereduaustudentuforupurposesuofudetermininguwheth
eruaudependencyuexemptionuisupermitted.uTrue False
23. Audependencyuexemptionumayubeuclaimedubyutheusupportingutaxpayeruinutheuyearuofu
deathuofuaudependent.
True False
24. Foru2012,upersonaluandudependencyuexemptionsuareu$3,800ueach.u
True False
25. Scholarshipsureceivedubyuaustudentumayubeuexcludeduforupurposesuofutheusupportutestu
forudeterminingutheuavailabilityuofutheudependencyuexemption.
True False
