FPQP Model * Tax
Implication fully
solved & updated
Which of the following taxes is NOT allowed as an itemized
deduction?
A)
Property taxes
B)
State income taxes
C)
FICA taxes
D)
Local income taxes - answer C; fica Taxes
FICA (Social Security) taxes are not allowed as an itemized
deduction. The maximum deduction for all state and local taxes,
including property taxes, is $10,000 per year.
Which of the following circumstances would require most taxpayers
to file a federal income tax return?
A)
The taxpayer earned any amount of unearned income.
B)
The taxpayer has dependent children.
C)
The taxpayer's gross income exceeds the standard deduction.
,D)
The taxpayer elects to become an expatriate. - answer C)
The taxpayer's gross income exceeds the standard deduction.
A taxpayer is generally required to file a federal income tax return if
the taxpayer's gross income exceeds the standard deduction
amount. The other choices listed do not necessarily affect impact
filing requirements.
Which of the following is NOT a filing status for federal income tax
purposes?
A)
Qualified disabled
B)
Single
C)
Married filing separately
D)
Married filing jointly - answer A)
Qualified disabled
What is the significance of a taxpayer supporting a minor child as a
dependent for federal income tax purposes?
A)
The taxpayer cannot use the Single (S) status.
B)
The taxpayer may claim a tax credit for each dependent child under
the age of 17.
C)
The taxpayer receives an additional standard deduction.
, D)
The taxpayer receives a larger standard deduction. - answer The
taxpayer may claim a tax credit for each dependent child under the
age of 17.
A taxpayer is allowed to claim as a tax credit each person who is a
dependent, but does not automatically receive a larger or additional
standard deduction for each dependent. Taxpayers with children
often use the Married Filing Jointly or Head of Household filing
status. However, in the case of a divorced parent who does not have
custody or does not provide more than 50% of the minor's support,
the Single (S) filing status may still be required.
Gross income includes all of the following types of income except
A)
tips.
B)
child support received.
C)
dividends received.
D)
taxable interest. - answer B)
child support received.
Which of the following would be included in calculating a client's
gross income?
A)
Inheritances received
B)
Lottery prize money
C)
Implication fully
solved & updated
Which of the following taxes is NOT allowed as an itemized
deduction?
A)
Property taxes
B)
State income taxes
C)
FICA taxes
D)
Local income taxes - answer C; fica Taxes
FICA (Social Security) taxes are not allowed as an itemized
deduction. The maximum deduction for all state and local taxes,
including property taxes, is $10,000 per year.
Which of the following circumstances would require most taxpayers
to file a federal income tax return?
A)
The taxpayer earned any amount of unearned income.
B)
The taxpayer has dependent children.
C)
The taxpayer's gross income exceeds the standard deduction.
,D)
The taxpayer elects to become an expatriate. - answer C)
The taxpayer's gross income exceeds the standard deduction.
A taxpayer is generally required to file a federal income tax return if
the taxpayer's gross income exceeds the standard deduction
amount. The other choices listed do not necessarily affect impact
filing requirements.
Which of the following is NOT a filing status for federal income tax
purposes?
A)
Qualified disabled
B)
Single
C)
Married filing separately
D)
Married filing jointly - answer A)
Qualified disabled
What is the significance of a taxpayer supporting a minor child as a
dependent for federal income tax purposes?
A)
The taxpayer cannot use the Single (S) status.
B)
The taxpayer may claim a tax credit for each dependent child under
the age of 17.
C)
The taxpayer receives an additional standard deduction.
, D)
The taxpayer receives a larger standard deduction. - answer The
taxpayer may claim a tax credit for each dependent child under the
age of 17.
A taxpayer is allowed to claim as a tax credit each person who is a
dependent, but does not automatically receive a larger or additional
standard deduction for each dependent. Taxpayers with children
often use the Married Filing Jointly or Head of Household filing
status. However, in the case of a divorced parent who does not have
custody or does not provide more than 50% of the minor's support,
the Single (S) filing status may still be required.
Gross income includes all of the following types of income except
A)
tips.
B)
child support received.
C)
dividends received.
D)
taxable interest. - answer B)
child support received.
Which of the following would be included in calculating a client's
gross income?
A)
Inheritances received
B)
Lottery prize money
C)
