Income Tax Fundamentals 2023 41st Edition by Gerald E. Whittenburg, Steven Gill | TEST BANK

,
, a. True
b. False

12. If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.
a. True
b. False

13. Taxpayers who do not qualify for married, head of household, or surviving spouse filing status must file as single.
a. True
b. False

14. 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 their dependent, they may use the head of household filing status.
a. True
b. False

15. The maximum official individual income tax rate for 2022 is 39.6 percent, not including the Medicare surtax on net
investment income.
a. True
b. False

16. All taxpayers may use the tax rate schedule to determine their tax liability.
a. True
b. False

17. The head of household tax rates are higher than the rates for a single taxpayer.
a. True
b. False

18. Most states are community property states.
a. True
b. False

19. If taxpayers are married and living together at the end of the year, they must file a joint tax return.
a. True
b. False

20. A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the
child is not the taxpayer's dependent.
a. True
b. False

21. A married person with a dependent child may choose to file as head of household if it reduces the taxpayer's tax
liability.
a. True
b. False

22. Taxpayers who live alone, are legally separated from their spouses under a separate maintenance decree at year-end,
and have no dependents should file as single.

Powered by Cognero Page 2

, a. True
b. False

23. Malik, age 22, is enrolled in college on a full-time basis. His parents provide all of his support. Malik may be claimed
as a dependent by his parents.
a. True
b. False

24. A dependent that dies during the tax year may still qualify as a dependent.
a. True
b. False

25. For 2022, the deductions for personal and dependency exemptions are $4,300 each.
a. True
b. False

26. Scholarships received by a student may be excluded for purposes of the support test for determining the availability of
the dependency exemption.
a. True
b. False

27. The two types of dependents are qualifying child or qualifying relative.
a. True
b. False

28. An 18-year-old full-time student who is claimed on the parents' tax return as a dependent is eligible for the child tax
credit.
a. True
b. False

29. Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is
higher.
a. True
b. False

30. An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.
a. True
b. False

31. Taxpayers can download tax forms from the IRS Internet site.
a. True
b. False

Indicate the answer choice that best completes the statement or answers the question.

32. Which of the following is a goal of the tax law?
a. Encouraging certain social goals such as contributions to charity
b. Supporting certain economic goals such as increasing unemployment
c. Encouraging smaller families
Powered by Cognero Page 3