TEST BANK
Income Tax Fundamentals 2020
Gerald E. Whittenburg
38th Edition
Chapters 1-12 (Questions with Verified Answers)
,Table of Contents
1. The Individual 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 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
,Chapter 1: The Individual Income Tax Return
(ANSWER KEY AT THE END OF EVERY CHAPTER)
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 separatereturns.
True False
4. An item is not included in gross income unless the tax law specifies that the item issubject to
taxation.
True False
5. For taxpayers who do not itemize deductions, the standard deduction amount issubtracted
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 deductionamount
must file a tax return.
True False
8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750must file
a tax return.
, 9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files
a tax return.
True False
10. Taxpayers with self-employment income of $400 or more must file a tax return.True
False
11. If your spouse dies during the tax year and you do not remarry, you must file assingle for
the year of death.
True False
12. Taxpayers who do not qualify for married, head of household, or qualifying widow orwidower
filing status must file as single.
True False
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.
True False
14. The maximum official individual income tax rate for 2012 is 35 percent.True
False
15. All taxpayers may use the tax rate schedule to determine their tax liability. True
False
16. The head of household tax rates are higher than the rates for a single taxpayer.True
False
17. Most states are community property states.
Income Tax Fundamentals 2020
Gerald E. Whittenburg
38th Edition
Chapters 1-12 (Questions with Verified Answers)
,Table of Contents
1. The Individual 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 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
,Chapter 1: The Individual Income Tax Return
(ANSWER KEY AT THE END OF EVERY CHAPTER)
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 separatereturns.
True False
4. An item is not included in gross income unless the tax law specifies that the item issubject to
taxation.
True False
5. For taxpayers who do not itemize deductions, the standard deduction amount issubtracted
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 deductionamount
must file a tax return.
True False
8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750must file
a tax return.
, 9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files
a tax return.
True False
10. Taxpayers with self-employment income of $400 or more must file a tax return.True
False
11. If your spouse dies during the tax year and you do not remarry, you must file assingle for
the year of death.
True False
12. Taxpayers who do not qualify for married, head of household, or qualifying widow orwidower
filing status must file as single.
True False
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.
True False
14. The maximum official individual income tax rate for 2012 is 35 percent.True
False
15. All taxpayers may use the tax rate schedule to determine their tax liability. True
False
16. The head of household tax rates are higher than the rates for a single taxpayer.True
False
17. Most states are community property states.
