TEST BANK FOR
INCOME TAX FUNDAMENTALS 2025, 43ND EDITION
BY WHITTENBURG, GILL/COMPLETE GUIDE/ALL CHAPTERS
1-12
,CONTENTS
1. The Individual Income Tax Return.
2. Gross Income and Exclusion.
3. Business Income and Expenses, Part I.
4. Business Income and Expenses, Part II.
5. Itemized Deductions and Other Incentives.
6. Credits and Special Taxes.
7. Accounting Periods and Methods and Depreciation.
8. Capital Gains and Losses.
9. Withholding, Estimated Payments, and Payroll Taxes.
10. Partnership Taxation.
11. The Corporate Income Tax.
12. Tax Administration and Tax Planning.
,CH 1: The Individual Income Tax Return
1. A company is a reporting entity but not a tax-paying entity.
FALSE
2. Partnership capital gains and losses are allocated separately to each of the partners.
TRUE
3. Married taxpayers may double their standard deduction amount by filing
separatereturns.
FALSE
4. An item is not included in gross income unless the tax law specifies that the
item issubject to taxation.
FALSE
5. For taxpayers who do not itemize deductions, the standard deduction
amount issubtracted from the taxpayer's adjusted gross income.
TRUE
6. A taxpayer with self-employment income of $600 must file a tax return.
TRUE
7. A dependent child with earned income in excess of the available standard
deductionamount must file a tax return.
TRUE
8. A single taxpayer, who is not blind and who is under age 65, with income of
, $8,750must file a tax return.
FALSE
9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether
heor she files a tax return.
FALSE
10. Taxpayers with self-employment income of $400 or more must file a tax return.
TRUE
11. If your spouse dies during the tax year and you do not remarry, you must
file assingle for the year of death.
FALSE
12. Taxpayers who do not qualify for married, head of household, or qualifying
widow orwidower filing status must file as single.
TRUE
13. If an unmarried taxpayer paid more than half the cost of keeping a home which is
theprincipal place of residence of a nephew, who is not her dependent, she may use
the head of household filing status.
FALSE
14. The maximum official individual income tax rate for 2012 is 35 percent.
TRUE
15. All taxpayers may use the tax rate schedule to determine their tax liability.
FALSE
16. The head of household tax rates are higher than the rates for a single taxpayer.
INCOME TAX FUNDAMENTALS 2025, 43ND EDITION
BY WHITTENBURG, GILL/COMPLETE GUIDE/ALL CHAPTERS
1-12
,CONTENTS
1. The Individual Income Tax Return.
2. Gross Income and Exclusion.
3. Business Income and Expenses, Part I.
4. Business Income and Expenses, Part II.
5. Itemized Deductions and Other Incentives.
6. Credits and Special Taxes.
7. Accounting Periods and Methods and Depreciation.
8. Capital Gains and Losses.
9. Withholding, Estimated Payments, and Payroll Taxes.
10. Partnership Taxation.
11. The Corporate Income Tax.
12. Tax Administration and Tax Planning.
,CH 1: The Individual Income Tax Return
1. A company is a reporting entity but not a tax-paying entity.
FALSE
2. Partnership capital gains and losses are allocated separately to each of the partners.
TRUE
3. Married taxpayers may double their standard deduction amount by filing
separatereturns.
FALSE
4. An item is not included in gross income unless the tax law specifies that the
item issubject to taxation.
FALSE
5. For taxpayers who do not itemize deductions, the standard deduction
amount issubtracted from the taxpayer's adjusted gross income.
TRUE
6. A taxpayer with self-employment income of $600 must file a tax return.
TRUE
7. A dependent child with earned income in excess of the available standard
deductionamount must file a tax return.
TRUE
8. A single taxpayer, who is not blind and who is under age 65, with income of
, $8,750must file a tax return.
FALSE
9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether
heor she files a tax return.
FALSE
10. Taxpayers with self-employment income of $400 or more must file a tax return.
TRUE
11. If your spouse dies during the tax year and you do not remarry, you must
file assingle for the year of death.
FALSE
12. Taxpayers who do not qualify for married, head of household, or qualifying
widow orwidower filing status must file as single.
TRUE
13. If an unmarried taxpayer paid more than half the cost of keeping a home which is
theprincipal place of residence of a nephew, who is not her dependent, she may use
the head of household filing status.
FALSE
14. The maximum official individual income tax rate for 2012 is 35 percent.
TRUE
15. All taxpayers may use the tax rate schedule to determine their tax liability.
FALSE
16. The head of household tax rates are higher than the rates for a single taxpayer.
