Intuit Practice Exam Questions With Complete Solutions
A taxpayer is a resident of Nevada and frequents the casinos
daily. Since they are an excellent card player, they get invited to
many poker tournaments throughout the US. For the current
year, the taxpayer won $150,000 and lost $60,000 playing
poker. They also incurred $10,000 in flights, $5,000 in hotels
and $2,000 in other tournament fees. Is the following statement
correct?
Yes/True. Most gambling activities do not offset gambling
winnings with transportation and tournament fees.
A taxpayer lost their spouse in the current year and received
$500,000 of proceeds from a life insurance policy. The taxpayer
decided to sell the house they lived in for the past twenty years
and had a gain of $100,000 from the sale int he current year. The
taxpayer did not have any other income for the year. The
taxpayer did not have any other income for the year. Is the
following statement accurate?
Yes/True. Life insurance proceeds are excluded from gross
income.
Yes/True. The gain of $100,000 is excluded in gross income
form the sale of the home.
Taxpayer A is a single filing taxpayer who is age 48. She earns
$40,000 per year and is covered by a retirement plan at work.
Taxpayer A is contributing to her Individual Retirement
, Account (IRA) in the current year. Can she take an above line
deduction on her tax return?
Yes/True. She can take a full deduction, up to the amount of the
contribution limit.
Taxpayer A and B are married, filing joint for the current year.
Their gross income is $80,000. Is the following statement
correct?
Yes/True. Taxpayer A paid child support payments of $5,000 to
their ex-spouse for their children. These payments cannot be
deducted by Taxpayer A.
Yes/True. The taxpayers can reduce their adjusted gross income
from a $50 penalty paid for and early withdrawal of a certificate
of deposit.
Taxpayer A and B are married and file a joint return. For the
current Year, they each earned $50,000as school teachers. They
also has the following: Is the following statements accurate?
Yes/True. The taxpayers adjusted gross income is
$99,650 Yes/True. The taxpayers do not need to include $4,200
of workers compensation benefits in taxable income.
Is the statement correct regarding taxpayer retirement saving?
Yes/True. A Roth IRA must have been opened for at least five
years for distributions to be qualified. Yes/True. Roth IRA's are
not subject to required minimum distributions
Taxpayer A has the following items for their tax return:
*$9 Interest Income form Wells Fargo bank
A taxpayer is a resident of Nevada and frequents the casinos
daily. Since they are an excellent card player, they get invited to
many poker tournaments throughout the US. For the current
year, the taxpayer won $150,000 and lost $60,000 playing
poker. They also incurred $10,000 in flights, $5,000 in hotels
and $2,000 in other tournament fees. Is the following statement
correct?
Yes/True. Most gambling activities do not offset gambling
winnings with transportation and tournament fees.
A taxpayer lost their spouse in the current year and received
$500,000 of proceeds from a life insurance policy. The taxpayer
decided to sell the house they lived in for the past twenty years
and had a gain of $100,000 from the sale int he current year. The
taxpayer did not have any other income for the year. The
taxpayer did not have any other income for the year. Is the
following statement accurate?
Yes/True. Life insurance proceeds are excluded from gross
income.
Yes/True. The gain of $100,000 is excluded in gross income
form the sale of the home.
Taxpayer A is a single filing taxpayer who is age 48. She earns
$40,000 per year and is covered by a retirement plan at work.
Taxpayer A is contributing to her Individual Retirement
, Account (IRA) in the current year. Can she take an above line
deduction on her tax return?
Yes/True. She can take a full deduction, up to the amount of the
contribution limit.
Taxpayer A and B are married, filing joint for the current year.
Their gross income is $80,000. Is the following statement
correct?
Yes/True. Taxpayer A paid child support payments of $5,000 to
their ex-spouse for their children. These payments cannot be
deducted by Taxpayer A.
Yes/True. The taxpayers can reduce their adjusted gross income
from a $50 penalty paid for and early withdrawal of a certificate
of deposit.
Taxpayer A and B are married and file a joint return. For the
current Year, they each earned $50,000as school teachers. They
also has the following: Is the following statements accurate?
Yes/True. The taxpayers adjusted gross income is
$99,650 Yes/True. The taxpayers do not need to include $4,200
of workers compensation benefits in taxable income.
Is the statement correct regarding taxpayer retirement saving?
Yes/True. A Roth IRA must have been opened for at least five
years for distributions to be qualified. Yes/True. Roth IRA's are
not subject to required minimum distributions
Taxpayer A has the following items for their tax return:
*$9 Interest Income form Wells Fargo bank
