TEST BANK FOR INCOME TAX FUNDAMENTALS 2025, 43RD EDITION BY WHITTENBURG, GILL/COMPLETE GUIDE/ALL CHAPTERS 1-12

TESTBANK:INCOME
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TAX
FUNDAMENTALS,
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38THEDITION,
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GERALDE.
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WHITTENBURG,
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MARTHAALTUS-
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BULLER,STEVENGILL
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,Chapter1:TheIndividualIncomeTaxReturn k k k k k k




1. A corporation is a reporting entity but not a tax-paying entity. True
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False



2. Partnership capital gains and losses are allocated separately to each of the partners. True
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False



3. Married taxpayers may double their standard deduction amount by filing separate
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returns.
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True False



4. An item is not included in gross income unless the tax law specifies that the item is subject
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to taxation.
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True False



5. For taxpayers who do not itemize deductions, the standard deduction amount is
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subtracted from the taxpayer's adjusted gross income.
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True False



6. A taxpayer with self-employment income of $600 must file a tax return. True
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False



7. A dependent child with earned income in excess of the available standard deduction
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amount must file a tax return.
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True False



8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750 must file a
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tax return.
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True False

,9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she
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files a tax return.
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True False



10. Taxpayers with self-employment income of $400 or more must file a tax return. True
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False



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



12. Taxpayers who do not qualify for married, head of household, or qualifying widow or
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widower filing status must file as single.
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True False



13. If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal
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place of residence of a nephew, who is not her dependent, she may use the head of household
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filing status.
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True False



14. The maximum official individual income tax rate for 2012 is 35 percent. True
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False



15. All taxpayers may use the tax rate schedule to determine their tax liability. True
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False



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



17. Most states are community property states. k k k k k




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



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



20. A married person with a dependent child may choose to file as head of household if it reduces
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his or her tax liability.
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True False



21. A taxpayer who is living alone and is legally separated from his or her spouse under a separate
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maintenance decree at year-end should file as single.
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True False



22. An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student
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for purposes of determining whether a dependency exemption is permitted. True
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23. A dependency exemption may be claimed by the supporting taxpayer in the year of death of
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a dependent.
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True False



24. For 2012, personal and dependency exemptions are $3,800 each. True
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False



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