Accounting III
William Burke's wife is a Greek citizen. Her sister, Athena, who is also a Greek citizen, lived in the Burkes' home in Greece for the entire tax year. William provided more than 50% of Athena's total support. Can William claim his sister-in-law as a dependent?
No
In most cases, unemployment compensation is taxable. True or false?
True
Maintaining eye contact with a taxpayer is an nonverbal cue that you are actively listening. True or false?
True
Self-review is an acceptable means of quality review, but only if a second qualified person cannot be present. True or false?
True
Some taxpayers may wish to increase withholding and make estimated tax payments to avoid having a balance due next year. True or false?
True
Taxpayers can deduct part of their self-employment tax as an adjustment to income. True or false?
True
Taxpayers can purchase savings bonds for their beneficiaries with part of their refund. True or false?
True
Taxpayers who claim the EIC based on one or more qualifying children are required to attach the Schedule EIC to their return. True or false?
True
Taxpayers with more than one employer might have had more than the required amount of social security tax withheld from their wages for the year. If this occurred, taxpayers can claim the excess withholding as a credit in the Payments section of Form 1040. True or false?
True
The age test applies to a qualifying child. True or false?
True
The child and dependent care tax credit applies only to taxpayers with dependents under the age of 13. True or false?
True
The cost of sending a child to day camp is a qualified expense for the child and dependent credit. True or false?
True
To qualify for the child and dependent care credit, a taxpayer must have taxable income. True or false?
True
To qualify for the nonrefundable child tax credit, a taxpayer must have tax liability (owe taxes). True or false?
True
Traditional IRAs and other qualified plans allow individuals to defer paying taxes on money they contribute, and on the earnings, until the funds are distributed. However, a taxpayer who takes a distribution before age 59.5 may be subject to not only the income tax but also an additional tax. True or false?
True
True or false? Form W-2G is used by taxpayers to report gambling winnings.
True
Brenda discovered an error on her 2007 tax return, which had been filed on time. Correction of this error would result in a refund. She mails an amended return on May 6, 2011. Is it too late for Brenda to claim a refund?
Yes
You can provide a guaranteed data that the taxpayer can expect a tax refund, based on the date the return is filed. True or false?
False
Bob is 27 years old. No one can claim him as a dependent. His gross income was $9550 during the tax year. Based only on this information, Bob is required to file a tax return. True or false?
True
Form 13614-C, Section C must be used to conduct a quality review. True or false?
True
Jenny Married Rick in April of the tax year. Neither can be claimed as a dependent on another's tax return. Both worked and earned gross income for the tax year. They claim both of their personal exemptions on their joint tax return. True or false?
True
The taxpayer's spouse can be claimed as a dependency exemption. True or false?
False
Wendel's father obtained a loan for his son's qualified educational expenses. Wendel, who is his father's dependent, has agreed to pay the interest on the loan. In this case, either person can claim the deduction, as long as they do not both claim the deduction. True or false?
False
Ryan and Julie were married on December 29. They should file as
Married Filing Joint
A driver's license can be used to verify a taxpayer's social security number and correct name spelling. True or false?
False
All taxpayers who contribute to traditional IRAs are automatically entitled to a full or partial deduction on their tax return. True or false?
False
The relationship test must be met for a qualifying relative. True or false?
True
When Colten was laid off, he received state unemployment compensation totaling $4,000 before finding a new job. He will report $4,000 as unemployment income. True or false?
True
A person can be claimed as a dependent on more than one income tax return. True or false?
False
Nadia divorced in 2007. Her settlement agreement states that she must pay for her ex-husband $14,000 a year. She is also required to pay his ongoing medical expenses for a condition he acquired during a marriage. During the tax year, the medical expenses were $8,400. The amount she can deduct as an adjustment to income includes only her medical expenses, not the payments to her ex-husband. True or false?
False
Since volunteer tax assistance sites use tax software to create and e-file tax returns, a paper copy of the return is not necessary. True or false?
False
Taxpayers who have a balance due may elect to pay in full within 60 or 120 days with no interest and penalty. True or false?
False
The amount of tax due and paid with this year's tax return qualifies as an estimated payment. True or false?
False
The quality review can be done either before or after the taxpayer signs the return. True or false?
False
Tip income is not subject to federal income tax. True or false?
False
Tip income of less than $20 per month is exempt from federal income tax. True or false?
False
Hank comes to your site for help with his tax return. He is upset because his neighbor told him that he would have to pay tax on all of his social security benefits this year. After talking to Hank, you learn that his wife died several years ago. In 2011, he sold all of his stock and moved into senior housing. Hank received $31,896 of taxable income from the sale of the stock. His neighbor told him, with that much income, the entire $11,724 of his social security benefits would be taxable. If Hank had not sold his stock and had no other source of income other than social security, his benefits may not be taxable. True or false?
True
Individuals who are not required to file a tax return should file a return if they can claim the earned income credit. True or false?
True
The non-business energy property credit applies only to a taxpayer's principal residence, not rentals. True or false?
True
There are fees charged by the IRS on installment agreement requests that are approved. True or false?
True
Using direct deposit is one way to reduce the chance that a refund will be lost or stolen. True or false?
True
Anne's husband died on February 28, 2010. Anne has not remarried, but she has an 18-year-old dependent son. Anne's filling status should be:
Qualifying Widower w/ Dependent Child
Hank comes to your site for help with his tax return. He is upset because his neighbor told him that he would have to pay tax on all of his social security benefits this year. After talking to Hank, you learn that his wife died several years ago. In 2011, he sold all of his stock and moved into senior housing. Hank received $31,896 of taxable income from the sale of the stock. His neighbor told him, with that much income, the entire $11,724 of his social security benefits would be taxable. The Social Security Benefits Worksheet is used to calculate the taxable portion of Hank's benefits. True or false?
True
Hank comes to your site for help with his tax return. He is upset because his neighbor told him that he would have to pay tax on all of his social security benefits this year. After talking to Hank, you learn that his wife died several years ago. The maximum taxable amount of Hank's benefits is 85%. In 2011, he sold all of his stock and moved into senior housing. Hank received $31,896 of taxable income from the sale of the stock. His neighbor told him, with that much income, the entire $11,724 of his social security benefits would be taxable. True or false?
True
Tax payers can take the additional child tax credit in place of the child tax credit. True or false?
False
Gambling winnings minus gambling losses is the correct way to report gambling income on Form 1040, line 21.
False
All interest income is taxable. True or false?
False
Federal income tax withheld is reported to taxpayers on Form W-4. True or false?
False
For EIC, a child can be claimed as a qualifying child on more than one tax return. True or false?
False
Hank comes to your site for help with his tax return. He is upset because his neighbor told him that he would have to pay tax on all of his social security benefits this year. After talking to Hank, you learn that his wife died several years ago. In 2011, he sold all of his stock and moved into senior housing. Hank received $31,896 of taxable income from the sale of the stock. His neighbor told him, with that much income, the entire $11,724 of his social security benefits would be taxable. Hank's neighbor is correct; all of Hank's social security benefits are taxable. True or false?
False
Stephen's wife files a separate return and itemizes her deductions. Stephen can choose to take the standard deduction or itemize his deductions. True or false?
False
Taxpayers who file as Married Filing Separately may qualify for the EIC. True or false?
False
Becky and Frank were divorced on December 29. They have no children or other dependents and have not married. Their filing status should be:
Single
Tom's wife died on October 20, 2009. Tom has no dependents and has not remarried. Tom should file as:
Single
An employee can deduct the amount of jury duty pay turned over to the employer as an adjustment to income when the employer continues to pay the employee and the jury duty pay is given to the employer. True or false?
True
Anita has a 13-year-old adopted son, Ryan. He is a US citizen and lived with Anita for the entire tax year. Anita provided all of her son's support. Ryan is a qualifying child for the child tax credit. True or false?
True
Benjamin, age 26, lives alone, is single, and earns $10,250. His adjusted gross income is $10,950. Benjamin can claim the EIC. True or false?
True
Besides Publication 4012, Volunteer Resource Guide, Publication 17 should be used as a reference for help on all tax-related topics. True or false?
True
Form 1040-ES is used to compute the amount of estimated tax to be paid over the year. True or false?
True
Form 1099-INT may be used to report tax-exempt interest income. True or false?
True
Form 13614-C must be used by all certified volunteer tax preparers participating in the VITA/CTE programs when preparing a tax return. True or false?
True
Gloria's husband, Dante, has neither a green card nor a visa, and he does not have a tax home in another country. He was physically present int he United States for 150 days in each of the years 2009, 2010, and 2011. Is Dante a resident alien under the substantial presence test for 2011?
Yes
A Form W-4 is used to report wage and tax information to employees. True or false?
False
Cindy's husband died on August 19 of this year. Cindy has no dependents and has not remarried. She should file as?
Married filing Joint
John e-filed his 2009 Form on March 29, 2010. The next year, while preparing his 2010 return, John discovered an error in his 2009 return, which resulted in a higher refund. John mailed an amended 2009 return on April 19, 2011. Is this too late to qualify for the refund?
No
A joint return requires the signature of both spouses, even if only one spouse has income. True or false?
True
A taxpayer who claims a dependent can use any form except Form 10403Z. True or false?
True
Each dependency exemption decreases income subject to tax. True or false?
True
A taxpayer who is on temporary disability and under age 65 might qualify for the credit for the elderly or the disabled. True or false?
False
Factors that determine the amount of a taxpayer's standard deduction are the taxpayer's gross income and filing status. True or false?
False
