TEST BANK
Income Tax Fundamentals , 42nd Edition by
Whittenburg, Gill. Chapters 1 - 12
,TABLE OF CONTENTS
1. The Indiṿidual Income Tax Return.
2. Gross Income and Exclusions.
3. Business Income and Expenses, Part I.
4. Business Income and Expenses, Part II.
5. Itemized Deductions and Other Incentiṿes.
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.
,Chapter 1: The Indiṿidual Income Tax Return
1. A corporation 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 aṿailable 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 ḳeeping 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 indiṿidual 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.
FALSE
17. Most states are community property states.
FALSE
Income Tax Fundamentals , 42nd Edition by
Whittenburg, Gill. Chapters 1 - 12
,TABLE OF CONTENTS
1. The Indiṿidual Income Tax Return.
2. Gross Income and Exclusions.
3. Business Income and Expenses, Part I.
4. Business Income and Expenses, Part II.
5. Itemized Deductions and Other Incentiṿes.
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.
,Chapter 1: The Indiṿidual Income Tax Return
1. A corporation 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 aṿailable 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 ḳeeping 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 indiṿidual 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.
FALSE
17. Most states are community property states.
FALSE
