TEST BANK: u
INCOME TAX FUN u u
DAMENTALS,38T u
H EDITION, GERAL
u u
D E. WHITTENBUR
u u
G, MARTHA ALTU
u u
S-
BULLER, STEVEN
u u u
GILL
,Chapter 1: The Individual Income Tax Return
u u u u u u
1. Au corporationu isu au reportingu entityu butu notu au tax-
payingu entity.u TrueuFalse
2. Partnershipucapitalugainsuandulossesuareuallocateduseparatelyutoueachuofutheupartners.uTrueuFalse
3. Marriedutaxpayersumayudoubleutheirustandardudeductionuamountubyufilinguseparateureturns.
Trueu False
4. Anu itemu isunotu includeduinu grossu incomeu unlessutheu taxulawuspecifiesuthatutheu itemu isusubjectutouta
xation.
Trueu False
5. Forutaxpayersuwhoudounotuitemizeudeductions,utheustandardudeductionuamountuisusubtracteduf
romutheutaxpayer'suadjustedugrossuincome.
Trueu False
6. Autaxpayeruwithuself-
employmentuincomeuofu$600umustufileuautaxureturn.uTrue False
7. Au dependentu childu withu earnedu incomeu inu excessu ofu theu availableu standardu deductionu amountu
mustufileuautaxureturn.
Trueu False
8. Ausingleutaxpayer,uwhouisunotublinduanduwhouisuunderuageu65,uwithuincomeuofu $8,750umustufileuauta
xureturn.
Trueu False
,9. Ifuzauztaxpayeruzisuzdueuzauzrefund,uzituzwilluzbeuzmaileduztouztheuztaxpayeruzregardlessuzofuzwhetheruzheuzoruzs
heuzfilesuzauztaxuzreturn.uz
TrueuzuzFalseuz
10. Taxpayersuzwithuzself-employmentuzincomeuzofuz$400uzoruzmoreuzmustuzfileuzauztaxuzreturn.uz
True False
11. Ifuzyouruzspouseuzdiesuzduringuztheuztaxuzyearuzanduzyouuzdouznotuzremarry,uzyouuzmustuzfileuzasuzs
ingleuzforuztheuzyearuzofuzdeath.uz
TrueuzuzFalseuz
12. Taxpayersu zwhou zdou znotu zqualifyu zforu zmarried,u zheadu zofu zhousehold,u zoru zqualifyingu zwidowu zoruz
widoweruzfilinguzstatusuzmustuzfileuzasuzsingle.uz
TrueuzuzFalseuz
13. Ifuzanuzunmarrieduztaxpayeruzpaiduzmoreuzthanuzhalfuztheuzcostuzofuzkeepinguzauzhomeuzwhichuzisuztheuzpri
ncipaluzplaceuzofuzresidenceuzofuzauznephew,uzwhouzisuznotuzheruzdependent,uzsheuzmayuzuseuztheuzheaduzofuzh
ouseholduzfilinguzstatus.uz
TrueuzuzFalseuz
14. Theuzmaximumuzofficialuzindividualuzincomeuztaxuzrateuzforuz2012uzisuz35uzpercent.uz
True False
15. Allu ztaxpayersu zmayu zuseu ztheu ztaxu zrateu zscheduleu ztou zdetermineu ztheiru ztaxu zliability.uz
TrueuzFalseuz
16. Theuzheaduzofuzhouseholduztaxuzratesuzareuzhigheruzthanuztheuzratesuzforuzauzsingleuztaxpayer.uz
TrueuzFalseuz
17. Mostuzstatesuzareuzcommunityuzpropertyuzstates.uz
Trueu False
, 18. Ifuztaxpayersuzareuzmarrieduzanduzlivinguztogetheruzatuztheuzenduzofuztheuzyear,uztheyuzmustuzfileuzauzj
ointuztaxuzreturn.uz
TrueuzuzFalseuz
19. Au ztaxpayeru zwhou zmaintainsu zau zhouseholdu zwithu zanu zunmarriedu zchildu zmayu zqualifyu ztou zfileu zasuz
headuzofuzhouseholduzevenuzifuztheuzchilduzisuznotuztheuztaxpayer'suzdependent.uz
TrueuzuzFalseuz
20. Auzmarrieduzpersonuzwithuzauzdependentuzchilduzmayuzchooseuztouzfileuzasuzheaduzofuzhouseholduzifuzituzr
educesuzhisuzoruzheruztaxuzliability.uz
TrueuzuzFalseuz
21. Auztaxpayeruzwhouzisuzlivinguzaloneuzanduzisuzlegallyuzseparateduzfromuzhisuzoruzheruzspouseuzunderuzauzs
eparateuzmaintenanceuzdecreeuzatuzyear-enduzshoulduzfileuzasuzsingle.uz
TrueuzuzFalseuz
22. Anuzindividual,uzageuz22,uzenrolleduzonuzauzfull-
timeuzbasisuzatuzauztradeuzschool,uzisuzconsidereduzauzstudentuzforuzpurposesuzofuzdetermininguzwhetheruz
auzdependencyuzexemptionuzisuzpermitted.uzTrueuzFalseuz
23. Au zdependencyu zexemptionu zmayu zbeu zclaimedu zbyu ztheu zsupportingu ztaxpayeru zinu ztheu zyearu zofuz
deathuzofuzauzdependent.uz
TrueuzuzFalseuz
24. Foruz2012,uzpersonaluzanduzdependencyuzexemptionsuzareuz$3,800uzeach.uz
True False
25. zScholarshipsuzreceiveduzbyuzauzstudentuzmayuzbeuzexcludeduzforuzpurposesuzofuztheuzsupportuztestuzforuz
determininguztheuzavailabilityuzofuztheuzdependencyuzexemption.
True False
INCOME TAX FUN u u
DAMENTALS,38T u
H EDITION, GERAL
u u
D E. WHITTENBUR
u u
G, MARTHA ALTU
u u
S-
BULLER, STEVEN
u u u
GILL
,Chapter 1: The Individual Income Tax Return
u u u u u u
1. Au corporationu isu au reportingu entityu butu notu au tax-
payingu entity.u TrueuFalse
2. Partnershipucapitalugainsuandulossesuareuallocateduseparatelyutoueachuofutheupartners.uTrueuFalse
3. Marriedutaxpayersumayudoubleutheirustandardudeductionuamountubyufilinguseparateureturns.
Trueu False
4. Anu itemu isunotu includeduinu grossu incomeu unlessutheu taxulawuspecifiesuthatutheu itemu isusubjectutouta
xation.
Trueu False
5. Forutaxpayersuwhoudounotuitemizeudeductions,utheustandardudeductionuamountuisusubtracteduf
romutheutaxpayer'suadjustedugrossuincome.
Trueu False
6. Autaxpayeruwithuself-
employmentuincomeuofu$600umustufileuautaxureturn.uTrue False
7. Au dependentu childu withu earnedu incomeu inu excessu ofu theu availableu standardu deductionu amountu
mustufileuautaxureturn.
Trueu False
8. Ausingleutaxpayer,uwhouisunotublinduanduwhouisuunderuageu65,uwithuincomeuofu $8,750umustufileuauta
xureturn.
Trueu False
,9. Ifuzauztaxpayeruzisuzdueuzauzrefund,uzituzwilluzbeuzmaileduztouztheuztaxpayeruzregardlessuzofuzwhetheruzheuzoruzs
heuzfilesuzauztaxuzreturn.uz
TrueuzuzFalseuz
10. Taxpayersuzwithuzself-employmentuzincomeuzofuz$400uzoruzmoreuzmustuzfileuzauztaxuzreturn.uz
True False
11. Ifuzyouruzspouseuzdiesuzduringuztheuztaxuzyearuzanduzyouuzdouznotuzremarry,uzyouuzmustuzfileuzasuzs
ingleuzforuztheuzyearuzofuzdeath.uz
TrueuzuzFalseuz
12. Taxpayersu zwhou zdou znotu zqualifyu zforu zmarried,u zheadu zofu zhousehold,u zoru zqualifyingu zwidowu zoruz
widoweruzfilinguzstatusuzmustuzfileuzasuzsingle.uz
TrueuzuzFalseuz
13. Ifuzanuzunmarrieduztaxpayeruzpaiduzmoreuzthanuzhalfuztheuzcostuzofuzkeepinguzauzhomeuzwhichuzisuztheuzpri
ncipaluzplaceuzofuzresidenceuzofuzauznephew,uzwhouzisuznotuzheruzdependent,uzsheuzmayuzuseuztheuzheaduzofuzh
ouseholduzfilinguzstatus.uz
TrueuzuzFalseuz
14. Theuzmaximumuzofficialuzindividualuzincomeuztaxuzrateuzforuz2012uzisuz35uzpercent.uz
True False
15. Allu ztaxpayersu zmayu zuseu ztheu ztaxu zrateu zscheduleu ztou zdetermineu ztheiru ztaxu zliability.uz
TrueuzFalseuz
16. Theuzheaduzofuzhouseholduztaxuzratesuzareuzhigheruzthanuztheuzratesuzforuzauzsingleuztaxpayer.uz
TrueuzFalseuz
17. Mostuzstatesuzareuzcommunityuzpropertyuzstates.uz
Trueu False
, 18. Ifuztaxpayersuzareuzmarrieduzanduzlivinguztogetheruzatuztheuzenduzofuztheuzyear,uztheyuzmustuzfileuzauzj
ointuztaxuzreturn.uz
TrueuzuzFalseuz
19. Au ztaxpayeru zwhou zmaintainsu zau zhouseholdu zwithu zanu zunmarriedu zchildu zmayu zqualifyu ztou zfileu zasuz
headuzofuzhouseholduzevenuzifuztheuzchilduzisuznotuztheuztaxpayer'suzdependent.uz
TrueuzuzFalseuz
20. Auzmarrieduzpersonuzwithuzauzdependentuzchilduzmayuzchooseuztouzfileuzasuzheaduzofuzhouseholduzifuzituzr
educesuzhisuzoruzheruztaxuzliability.uz
TrueuzuzFalseuz
21. Auztaxpayeruzwhouzisuzlivinguzaloneuzanduzisuzlegallyuzseparateduzfromuzhisuzoruzheruzspouseuzunderuzauzs
eparateuzmaintenanceuzdecreeuzatuzyear-enduzshoulduzfileuzasuzsingle.uz
TrueuzuzFalseuz
22. Anuzindividual,uzageuz22,uzenrolleduzonuzauzfull-
timeuzbasisuzatuzauztradeuzschool,uzisuzconsidereduzauzstudentuzforuzpurposesuzofuzdetermininguzwhetheruz
auzdependencyuzexemptionuzisuzpermitted.uzTrueuzFalseuz
23. Au zdependencyu zexemptionu zmayu zbeu zclaimedu zbyu ztheu zsupportingu ztaxpayeru zinu ztheu zyearu zofuz
deathuzofuzauzdependent.uz
TrueuzuzFalseuz
24. Foruz2012,uzpersonaluzanduzdependencyuzexemptionsuzareuz$3,800uzeach.uz
True False
25. zScholarshipsuzreceiveduzbyuzauzstudentuzmayuzbeuzexcludeduzforuzpurposesuzofuztheuzsupportuztestuzforuz
determininguztheuzavailabilityuzofuztheuzdependencyuzexemption.
True False
