HRB 27 COMPREHENSIVE EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔What requirements must be met for a taxpayer to use the qualifying widow(er)
status? - ✔✔• The death of the taxpayer's spouse must have occurred during one of the
two preceding tax years;
• The taxpayer must not have remarried and must have been entitled to file a joint return
for the year of death.
• The taxpayer must have paid over half the cost of maintaining the home which, for the
entire year, was the main home of their dependent son, daughter, stepson, or
stepdaughter.
✔✔In general, which parent gets to claim the qualifying child in a divorce? - ✔✔The
custodial parent. (5.7)
✔✔What is the exception to the custodial parent qualifying child rule? - ✔✔• If a decree
of divorce or separate maintenance or written separation agreement that became
effective after October 4, 2004, states that the noncustodial parent is entitled to claim
the child's dependency exemption, or if the custodial parent executes a written
declaration that they will not claim the child as a dependent for that year, the
noncustodial parent may claim the qualifying child.
• For divorces granted after December 31, 2008, Form 8332 must be filed if parents are
separating tax benefits. (5.7)
✔✔What's the difference between a withholding allowance and an exemption? - ✔✔• A
withholding allowance is reported on Form W-4 and is used to accurately calculate the
amount of tax to be withheld from an employee's wages.
• An exemption is claimed on the tax return for the taxpayer, spouse, and each
dependent. (24.)
✔✔Under what circumstances may an employee claim exemption from withholding? -
✔✔Only if the employee had no federal income tax liability for the prior year and he
expects to have no tax liability for the current year. (24.)
, ✔✔A single self-employed taxpayer estimates that his 2009 tax will be $7,500. His 2008
tax was $7,000. How much must he prepay for 2009 in order to avoid an underpayment
penalty? - ✔✔$6,750; the lesser of 90% of his 2009 tax [$7,500 X 90% = $6,750] or
100% of his 2008 tax ($7,000). (24.)
✔✔What information do you need to know to determine whether a return is required? -
✔✔• Marital Status
• Age & Student Status
• Gross Income
• Over 65 and Blindness
• Dependent Status
(3.2)
✔✔For tax purposes, when is a person's marital status determined? - ✔✔On the last
day of the tax year. (3.2)
✔✔What two amounts combine to make up the gross income filing requirement for most
taxpayers? - ✔✔The Standard Deduction and the Personal Exemption amounts. (3.7)
✔✔How much is added to the standard deduction if the taxpayer (or spouse) is age 65
or older or blind? - ✔✔$1,400 per condition for S and HH
$1,100 per condition for MFS, MFJ and QW (3.6)
✔✔If one spouse refuses to file a joint return, can the other spouse do anything about
it? - ✔✔No Both will have to file using the married filing separately status unless one or
both qualifies to be considered unmarried.
✔✔What kinds of property may be expensed using the Section 179 deduction? -
✔✔New or used tangible personal property (usually equipment or office furniture)
purchased for use in a trade or business. (17.2)
✔✔How is the MACRS deduction computed in the year of disposition for property being
depreciated using the half-year convention? - ✔✔HALF of the normal depreciation is
allowed. (17.9)
✔✔How is the MACRS deduction for the year of disposition computed if the property is
being depreciated using the mid-quarter convention? - ✔✔Depreciation for the entire
year, multiplied by a PERCENTAGE for quarter of disposition:
12.5% First
37.5% Second
62.5% Third
87.5% Fourth
(17.9)
ANSWERS SURE A+
✔✔What requirements must be met for a taxpayer to use the qualifying widow(er)
status? - ✔✔• The death of the taxpayer's spouse must have occurred during one of the
two preceding tax years;
• The taxpayer must not have remarried and must have been entitled to file a joint return
for the year of death.
• The taxpayer must have paid over half the cost of maintaining the home which, for the
entire year, was the main home of their dependent son, daughter, stepson, or
stepdaughter.
✔✔In general, which parent gets to claim the qualifying child in a divorce? - ✔✔The
custodial parent. (5.7)
✔✔What is the exception to the custodial parent qualifying child rule? - ✔✔• If a decree
of divorce or separate maintenance or written separation agreement that became
effective after October 4, 2004, states that the noncustodial parent is entitled to claim
the child's dependency exemption, or if the custodial parent executes a written
declaration that they will not claim the child as a dependent for that year, the
noncustodial parent may claim the qualifying child.
• For divorces granted after December 31, 2008, Form 8332 must be filed if parents are
separating tax benefits. (5.7)
✔✔What's the difference between a withholding allowance and an exemption? - ✔✔• A
withholding allowance is reported on Form W-4 and is used to accurately calculate the
amount of tax to be withheld from an employee's wages.
• An exemption is claimed on the tax return for the taxpayer, spouse, and each
dependent. (24.)
✔✔Under what circumstances may an employee claim exemption from withholding? -
✔✔Only if the employee had no federal income tax liability for the prior year and he
expects to have no tax liability for the current year. (24.)
, ✔✔A single self-employed taxpayer estimates that his 2009 tax will be $7,500. His 2008
tax was $7,000. How much must he prepay for 2009 in order to avoid an underpayment
penalty? - ✔✔$6,750; the lesser of 90% of his 2009 tax [$7,500 X 90% = $6,750] or
100% of his 2008 tax ($7,000). (24.)
✔✔What information do you need to know to determine whether a return is required? -
✔✔• Marital Status
• Age & Student Status
• Gross Income
• Over 65 and Blindness
• Dependent Status
(3.2)
✔✔For tax purposes, when is a person's marital status determined? - ✔✔On the last
day of the tax year. (3.2)
✔✔What two amounts combine to make up the gross income filing requirement for most
taxpayers? - ✔✔The Standard Deduction and the Personal Exemption amounts. (3.7)
✔✔How much is added to the standard deduction if the taxpayer (or spouse) is age 65
or older or blind? - ✔✔$1,400 per condition for S and HH
$1,100 per condition for MFS, MFJ and QW (3.6)
✔✔If one spouse refuses to file a joint return, can the other spouse do anything about
it? - ✔✔No Both will have to file using the married filing separately status unless one or
both qualifies to be considered unmarried.
✔✔What kinds of property may be expensed using the Section 179 deduction? -
✔✔New or used tangible personal property (usually equipment or office furniture)
purchased for use in a trade or business. (17.2)
✔✔How is the MACRS deduction computed in the year of disposition for property being
depreciated using the half-year convention? - ✔✔HALF of the normal depreciation is
allowed. (17.9)
✔✔How is the MACRS deduction for the year of disposition computed if the property is
being depreciated using the mid-quarter convention? - ✔✔Depreciation for the entire
year, multiplied by a PERCENTAGE for quarter of disposition:
12.5% First
37.5% Second
62.5% Third
87.5% Fourth
(17.9)
