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You may choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return. Which of the following facts would prevent you from being considered married for filing purposes? A) You were married for several years, but your divorce became final in December. B) You are married but living apart until some problems can be solved. C) Your spouse died during the year. D) None of the above.

A) You were married for several years, but your divorce became final in December.

In order to qualify to file as surviving spouse, all of the following criteria must be met by the widow or widower except A) he or she and the decedent must have shared the same household as of date of death. B) he or she must be a U.S. citizen or resident. C) he or she be qualified to file a joint return in the year of death. D) he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home.

A) he or she and the decedent must have shared the same household as of date of death.

When a spouse dies, the surviving spouse for the year of death A) may file a married filing jointly return. B) must file a tax return using the single filing status. C) must file a tax return using the head of household filing status. D) may file a married filing jointly return only if the death occurred in the last half of the year.

A) may file a married filing jointly return.

Which of the following types of itemized deductions are included in the category of miscellaneous expenses that are deductible only if the aggregate amount of such expenses exceeds 2% of the taxpayer's adjusted gross income? A) unreimbursed employee business expenses B) charitable contributions C) medical expenses D) home mortgage interest expense

A) unreimbursed employee business expenses

The child credit is for taxpayers with dependent children under the age of A) 14. B) 17. C) 19. D) 24.

B) 17.

Ray is starting a new business and trying to decide between a C corporation, S corporation and partnership. Which of the following statements regarding his decision is correct? A) An S corporation owner must pay income taxes only on the salary received. B) A partner in a partnership is taxed on his or her share of partnership income. C) A shareholder in a C corporation is taxed on his or her share of corporate income. D) S corporations pay taxes on their current year income.

B) A partner in a partnership is taxed on his or her share of partnership income.

Tom and Alice were married on December 31 of last year. What is their filing status for last year? A) They file as single. B) They file as married joint or married separate. C) They file as single for half the year and married for the other half. D) They file as single for 364 days and married for one day.

B) They file as married joint or married separate.

Which of the following credits is considered a refundable credit? A) child and dependent care credit B) earned income credit C) adoption expense credit D) lifetime learning credit

B) earned income credit

All of the following items are generally excluded from income except A) child support payments. B) interest on corporate bonds. C) interest on state and local government bonds. D) life insurance proceeds paid by reason of death.

B) interest on corporate bonds.

In order to shift the taxation of dividend income from a parent to a child, A) the parent must direct the corporation to pay the dividend to the child. B) the parent must transfer ownership of the stock to the child. C) the parent can deposit the dividend in the child's bank account. D) all of the above will result in shifting the taxation to the child.

B) the parent must transfer ownership of the stock to the child.

All of the following items are deductions for (not from) adjusted gross income except A) moving expenses. B) unreimbursed employee business expenses. C) qualifying contributions to individual retirement accounts. D) one-half of self-employment taxes paid.

B) unreimbursed employee business expenses.

Which of the following dependent relatives does not have to live in the same household as the taxpayer who is claiming head of household filing status? A) uncle B) brother C) father D) nephew

C) father

Sally divorced her husband three years ago and has not remarried. Since the divorce she has maintained her home in which she and her now sixteen-year-old daughter reside. The daughter is a qualified child. Sally signed the dependency exemption over to her ex-spouse. What is Sally's filing status for the current year and how many exemptions may she claim? A) single and one B) surviving spouse and one C) head of household and one D) head of household and two

C) head of household and one

Dave, age 59 and divorced, is the sole support of his mother age 83, who is a resident of a local nursing home for the entire year. Dave's mother had no income for the year. Dave's filing status and exemptions claimed are A) head of household and one exemption. B) single and one exemption. C) head of household and two exemptions. D) single and two exemptions.

C) head of household and two exemptions.

Edward, a widower whose wife died in 2011, maintains a household for himself and his daughter who qualifies as his dependent. Edward's most favorable filing status for 2014 is A) single. B) surviving spouse. C) head of household. D) married filing jointly.

C) head of household.

The filing status in which the rates increase most rapidly is A) single. B) head of household. C) married filing separately. D) married filing jointly.

C) married filing separately.

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has A) gross income that is less than the personal exemption. B) adjusted gross income that is less than the personal exemption. C) no gross income. D) no taxable income.

C) no gross income.

In 2011, Leo's wife died. Leo has two small children, ages 2 and 4, living at home whom he supports entirely. Leo does not remarry and is not claimed as a dependent on another's return during any of this period. In 2012, 2013, and 2014, Leo's most advantageous filing status is, respectively A) single for all three years. B) head of household for all three years. C) surviving spouse, surviving spouse, head of household. D) surviving spouse, surviving spouse, single.

C) surviving spouse, surviving spouse, head of household.

The oldest age at which the "Kiddie Tax" could apply to a dependent child is A) 17 B) 18 C) 20 D) 23

D) 23 Explanation: D) The child must be under age 24.

) Taxable income for an individual is defined as A) AGI reduced by itemized deductions. B) AGI reduced by personal and dependency exemptions. C) total income reduced by the standard deduction. D) AGI reduced by deductions from AGI and personal and dependency exemptions.

D) AGI reduced by deductions from AGI and personal and dependency exemptions.

A taxpayer can receive innocent spouse relief if A) the understated tax is attributable to erroneous items of the other spouse. B) the innocent spouse did not know and had no reason to know that there was an understatement of tax. C) under the circumstances, it would be inequitable to hold the innocent spouse liable for the understated tax. D) All of the above conditions apply.

D) All of the above conditions apply.

Married couples will normally file jointly. Identify a situation where a married couple may prefer to file separately. A) The spouse with lower income has substantial medical expenses. B) A couple is separated and contemplating divorce. C) One spouse can be held responsible for the entire tax liability. D) All of the above.

D) All of the above.

The regular standard deduction is available to which one of the following taxpayers? A) married taxpayer filing a separate return where the other spouse itemizes B) a person who has only unearned income and is a dependent of another C) an individual filing a return for a period of less than 12 months because of a change in accounting period D) an abandoned spouse

D) an abandoned spouse

All of the following items are included in gross income except A) alimony received. B) rent income. C) interest earned on a bank account. D) child support payments received.

D) child support payments received.

To qualify as an abandoned spouse, the taxpayer is not required to A) be a U.S. citizen or resident. B) live apart from the spouse for the last six months of the year. C) pay more than half the cost of maintaining the home. D) have a son or daughter in the home for the entire year.

D) have a son or daughter in the home for the entire year.

All of the following items are deductions for adjusted gross income except A) alimony paid. B) trade or business expenses. C) rent and royalty expenses. D) state and local income taxes.

D) state and local income taxes.

A married taxpayer may file as head of household under the abandoned spouse provisions if all of the following are met except A) the taxpayer lived apart from his or her spouse for the last six months of the year. B) the taxpayer is a U.S. citizen or resident. C) the taxpayer pays over half of the cost of maintaining a household in which the taxpayer and a dependent son or daughter live for over half of the year. D) the taxpayer must have been married for at least two years.

D) the taxpayer must have been married for at least two years.

Which of the following is not considered support for the dependent support test? A) food B) clothing C) rental value of lodging D) value of services rendered by the taxpayer for the dependent

D) value of services rendered by the taxpayer for the dependent