TEST BANK:
INCOME TAX
FUNDAMENTALS,
38TH EDITION,
GERALD E.
WHITTENBURG,
MARTHA ALTUS-
BULLER, STEVEN
GILL
,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. If za ztaxpayer zis zdue za zrefund, zit zwill zbe zmailed zto zthe ztaxpayer zregardless zof zwhether zhe zor
zshe zfiles za ztax zreturn. z
True z zFalse z
10. Taxpayers zwith zself-employment zincome zof z$400 zor zmore zmust zfile za ztax zreturn. z
True False
11. If zyour zspouse zdies zduring zthe ztax zyear zand zyou zdo znot zremarry, zyou zmust zfile zas
zsingle zfor zthe zyear zof zdeath. z
True z zFalse z
12. Taxpayers zwho zdo znot zqualify zfor zmarried, zhead zof zhousehold, zor zqualifying zwidow zor
zwidower zfiling zstatus zmust zfile zas zsingle. z
True z zFalse z
13. If zan zunmarried ztaxpayer zpaid zmore zthan zhalf zthe zcost zof zkeeping za zhome zwhich zis zthe
zprincipal zplace zof zresidence zof za znephew, zwho zis znot zher zdependent, zshe zmay zuse zthe zhead
zof zhousehold zfiling zstatus. z
True z zFalse z
14. The zmaximum zofficial zindividual zincome ztax zrate zfor z2012 zis z35 zpercent. z
True False
15. All ztaxpayers zmay zuse zthe ztax zrate zschedule zto zdetermine ztheir ztax zliability.
zTrue zFalse z
16. The zhead zof zhousehold ztax zrates zare zhigher zthan zthe zrates zfor za zsingle ztaxpayer.
zTrue zFalse z
17. Most zstates zare zcommunity zproperty zstates. z
True False
, 18. If ztaxpayers zare zmarried zand zliving ztogether zat zthe zend zof zthe zyear, zthey zmust zfile za
zjoint ztax zreturn. z
True z zFalse z
19. A ztaxpayer zwho zmaintains za zhousehold zwith zan zunmarried zchild zmay zqualify zto zfile zas
zhead zof zhousehold zeven zif zthe zchild zis znot zthe ztaxpayer's zdependent. z
True z zFalse z
20. A zmarried zperson zwith za zdependent zchild zmay zchoose zto zfile zas zhead zof zhousehold zif zit
zreduces zhis zor zher ztax zliability. z
True z zFalse z
21. A ztaxpayer zwho zis zliving zalone zand zis zlegally zseparated zfrom zhis zor zher zspouse zunder za
zseparate zmaintenance zdecree zat zyear-end zshould zfile zas zsingle. z
True z zFalse z
22. An zindividual, zage z22, zenrolled zon za zfull-time zbasis zat za ztrade zschool, zis zconsidered za
zstudent zfor zpurposes zof zdetermining zwhether za zdependency zexemption zis zpermitted. zTrue
zFalse z
23. A zdependency zexemption zmay zbe zclaimed zby zthe zsupporting ztaxpayer zin zthe zyear zof
zdeath zof za zdependent. z
True z zFalse z
24. For z2012, zpersonal zand zdependency zexemptions zare z$3,800 zeach. z
True False
25. zScholarships zreceived zby za zstudent zmay zbe zexcluded zfor zpurposes zof zthe zsupport ztest zfor
zdetermining zthe zavailability zof zthe zdependency zexemption.
True False
INCOME TAX
FUNDAMENTALS,
38TH EDITION,
GERALD E.
WHITTENBURG,
MARTHA ALTUS-
BULLER, STEVEN
GILL
,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. If za ztaxpayer zis zdue za zrefund, zit zwill zbe zmailed zto zthe ztaxpayer zregardless zof zwhether zhe zor
zshe zfiles za ztax zreturn. z
True z zFalse z
10. Taxpayers zwith zself-employment zincome zof z$400 zor zmore zmust zfile za ztax zreturn. z
True False
11. If zyour zspouse zdies zduring zthe ztax zyear zand zyou zdo znot zremarry, zyou zmust zfile zas
zsingle zfor zthe zyear zof zdeath. z
True z zFalse z
12. Taxpayers zwho zdo znot zqualify zfor zmarried, zhead zof zhousehold, zor zqualifying zwidow zor
zwidower zfiling zstatus zmust zfile zas zsingle. z
True z zFalse z
13. If zan zunmarried ztaxpayer zpaid zmore zthan zhalf zthe zcost zof zkeeping za zhome zwhich zis zthe
zprincipal zplace zof zresidence zof za znephew, zwho zis znot zher zdependent, zshe zmay zuse zthe zhead
zof zhousehold zfiling zstatus. z
True z zFalse z
14. The zmaximum zofficial zindividual zincome ztax zrate zfor z2012 zis z35 zpercent. z
True False
15. All ztaxpayers zmay zuse zthe ztax zrate zschedule zto zdetermine ztheir ztax zliability.
zTrue zFalse z
16. The zhead zof zhousehold ztax zrates zare zhigher zthan zthe zrates zfor za zsingle ztaxpayer.
zTrue zFalse z
17. Most zstates zare zcommunity zproperty zstates. z
True False
, 18. If ztaxpayers zare zmarried zand zliving ztogether zat zthe zend zof zthe zyear, zthey zmust zfile za
zjoint ztax zreturn. z
True z zFalse z
19. A ztaxpayer zwho zmaintains za zhousehold zwith zan zunmarried zchild zmay zqualify zto zfile zas
zhead zof zhousehold zeven zif zthe zchild zis znot zthe ztaxpayer's zdependent. z
True z zFalse z
20. A zmarried zperson zwith za zdependent zchild zmay zchoose zto zfile zas zhead zof zhousehold zif zit
zreduces zhis zor zher ztax zliability. z
True z zFalse z
21. A ztaxpayer zwho zis zliving zalone zand zis zlegally zseparated zfrom zhis zor zher zspouse zunder za
zseparate zmaintenance zdecree zat zyear-end zshould zfile zas zsingle. z
True z zFalse z
22. An zindividual, zage z22, zenrolled zon za zfull-time zbasis zat za ztrade zschool, zis zconsidered za
zstudent zfor zpurposes zof zdetermining zwhether za zdependency zexemption zis zpermitted. zTrue
zFalse z
23. A zdependency zexemption zmay zbe zclaimed zby zthe zsupporting ztaxpayer zin zthe zyear zof
zdeath zof za zdependent. z
True z zFalse z
24. For z2012, zpersonal zand zdependency zexemptions zare z$3,800 zeach. z
True False
25. zScholarships zreceived zby za zstudent zmay zbe zexcluded zfor zpurposes zof zthe zsupport ztest zfor
zdetermining zthe zavailability zof zthe zdependency zexemption.
True False
