Income Tax procedures Chapter2

Amy and Ethan are married and file a joint return for 2021. Their taxable income is $108,300. What is the amount of their tax liability using the tax rate schedule in Appendix F?

$15,323

How does a taxpayer determine which filing status to use? Multiple select question. - Filing status depends on the amount of taxable income the taxpayer has for the year. How does a taxpayer determine which filing status to use? Multiple select question. Filing status depends on the amount of taxable income the taxpayer has for the year. How does a taxpayer determine which filing status to use? Multiple select question. Filing status depends on the amount of taxable income the taxpayer has for the year. Filing status may depend on whether or not the taxpayer has dependents. Filing status depends on the age of the taxpayer. Filing status depends on whether or not the taxpayer is married at the end of the year. Filing status depends on the age of the taxpayer. Filing status depends on whether or not the taxpayer is married at the end of the year. - Filing status depends on the age of the taxpayer. - Filing status depends on whether or not the taxpayer is married at the end of the year.

- Filing status may depend on whether or not the taxpayer has dependents. - Filing status depends on whether or not the taxpayer is married at the end of the year.

Which of the following criteria is necessary to qualify as a dependent of another taxpayer? Multiple select question. - Must be a citizen of the U.S. or a resident of the U.S., Canada, or Mexico - Must be considered either a qualifying child or a qualifying relative - Must NOT file a joint return unless there is no tax liability on the couple's return and no tax liability on either return if they filed separately - Must NOT be required to file a tax return of his own

- Must be a citizen of the U.S. or a resident of the U.S., Canada, or Mexico - Must be considered either a qualifying child or a qualifying relative - Must NOT file a joint return unless there is no tax liability on the couple's return and no tax liability on either return if they filed separately

Which of the following statements are correct concerning the married filing separately (MFS) filing status? Multiple select question. - The MFS status may be useful when one spouse does NOT want to be in contact with the other spouse. - Tax-related items for MFS taxpayers (i.e. tax rate schedules, standard deduction amounts) are almost half the amounts for MFJ taxpayers. - The MFS status is the only status that may be used when a spouse dies during the tax year. - MFS taxpayers can capitalize on deductions when one spouse itemizes deductions, while the other spouse uses the standard deduction.

- The MFS status may be useful when one spouse does NOT want to be in contact with the other spouse. - Tax-related items for MFS taxpayers (i.e. tax rate schedules, standard deduction amounts) are almost half the amounts for MFJ taxpayers.

When can the married filing jointly or married filing separately filing status be used? Multiple select question. When can the married filing jointly or married filing separately filing status be used? Multiple select question. When the taxpayers are married as of the last day of the tax year When one spouse died during the year and the surviving spouse has not remarried When the taxpayers are unmarried, but have a dependent child living with them When the taxpayers are unmarried, but have lived together for the entire years are unmarried, but have a dependent child living with them - When the taxpayers are unmarried, but have lived together for the entire year

- When the taxpayers are married as of the last day of the tax year. - When one spouse died during the year and the surviving spouse has not remarried.

In 2021 Ryan files as head of household and has taxable income of $123,212. None of his taxable income consists of capital gains or qualified dividends. Using the tax rate schedule in Appendix F, his tax liability totals $ _________(rounded to the nearest dollar).

22140

Will and Lyndsey are married with no dependents and file a joint tax return. In 2021, they had $12,850 in itemized deductions. How much can they deduct from AGI in 2020?

25,100

Which of the following statements is true regarding the individual income tax formula? Multiple choice question. - A taxpayer may deduct the greater of his standard deduction or his personal exemption from AGI to arrive at taxable income. - A taxpayer may deduct the greater of his standard deduction or his itemized deductions for AGI to arrive at adjusted gross income. - A taxpayer may deduct the greater of his standard deduction or his itemized deductions from AGI to arrive at taxable income. - A taxpayer may deduct the greater of his standard deduction or his personal exemption for AGI to arrive at adjusted gross income.

A taxpayer may deduct the greater of his standard deduction or his itemized deductions from AGI to arrive at taxable income.

The tax code defines Blank______ Blank______ Blank______ as gross income minus a list of permitted deductions.

Adjusted Gross Income

Antoine Jones is single with two dependent children. During 2021, he has gross income of $99,800, deductions for AGI of $3,000, itemized deductions of $13,500 and tax credits of $4,000. Antoine had $7,895 withheld by his employer for federal income tax. They have total tax of $__________ and an amount due/refund of $_________. (Use the tax tables in Appendix D)

Blank 1: 14080 Blank 2: 2185

Expenses such as contributions to qualified retirement accounts and business expenses for self-employed persons are deductions ________ (FOR/FROM) AGI.

For

When a divorced taxpayer pays over half the cost of maintaining a home where she and a dependent child lived for over half the year, she qualifies for which filing status?

Head of Household

When is it possible for a qualifying person (for determining head of household status) to not live with the taxpayer?

If the person is the parent of the taxpayer

Lan is from Vietnam and has lived in the U.S. for five months during the year. He is not yet considered a resident because he hasn't lived in the U.S. for long enough. He resides with his uncle who is a U.S. citizen. Lan is single and a full-time student. He is considered a qualifying child of his uncle. Which of the following is correct regarding Lan's status as a dependent?

Lan can NOT be claimed as a dependent by his uncle because he is not a citizen or resident of the U.S..

Which filing status is used if one spouse dies during the year and the surviving spouse does not remarry before the end of the year?

Married filing jointly

If a taxpayer is unmarried at the end of the year, which of the following filing statuses could possibly be used by the individual?

Single or Head of household

When can a single taxpayer's mother or father be a qualifying person for determining head of household filing status?

When the taxpayer can claim a dependency exemption for the parent and the taxpayer pays over half the cost of maintaining the parent's home

Sheila and Joe Wells are married with two dependent children. During 2021, they have gross income of $99,800, deductions for AGI of $3,500, itemized deductions of $10,000 and tax credits of $2,000. The Wells' had $6,000 withheld by their employer for federal income tax. They have a total tax of $________ and an amount due/refund of $_______.

blank 1: 8149 Blank 2: 149

A taxpayer who files as married filing separately must show the name and social security number of their spouse on Form 1040. The standard deduction can be taken only if _______, Correct Unavailable of them choose the standard deduction.

both