Midterm jeopardy, *****es!
Chris, 67, and Leon, 68, are married, and they will file a joint return. Their only income during the year consisted of $32,000 in Social Security benefits any $10,000 pension distribution. How much of the social security benefits are taxable? $0.00 Up to 50% Up to 85% Up to 100%
$0.00
For 2018 how much as the standard deduction for a single taxpayer who is not blind and is under the age of 65? $0.00 $12,000 $18,000 $24,000
$12,000
For 2018, what is the gross income filing requirement for a single taxpayer of age 65 or older? $12,000 $13,600 $24,000 $26,600
$13,600
How much is the child tax credit worth? Up to $2000 per qualifying child. $2500 per qualifying child. $3000 per qualifying child. $5000 per qualifying child.
$2000
Which of the following shows these numbers rounded correctly? $31.43, $143.57, $369.22, $1,547.88 $32. $142. $368. $1,547 $32. $144. $369. $1548. $$31. $142. $369. $1547. $$32. $144 $368. $1547.
$32. $144. $369. $1548.
Nathan Bayer is a single taxpayer. His 2018 tax table income was $57,474. What is Nathan's 2018 Federal income tax? $5749 $6898 $8584 $12,644
$8584
Non custodial parents who want to claim the dependency exemption, and obtained a divorce Decree or separation agreement that went into effect in 2008, must file which of the following forms to claim the exemption? Form 8379. Form 2120. Form 8332. A copy of the court ordered agreement
A copy of the court ordered agreement
The standard deduction on income tax return is determined by: Citizenship. Residency. Filing status. Gross income.
Filing status.
Which form is file to protect one spouse's share of the refund when the other spouse was past due debts that can be offset by the refund? Form 8332. Form 2120. Form 8379. Form 8857.
Form 8379
Which of the following is considered earned income? Interest from a bank account Unemployment compensation Income from farming Gambling winnings
Income from farming
Which of the following is nontaxable on a Federal income tax return? Interest income from a savings account. Interest income from municipal bonds. Interest from corporate bonds. Interest from personal loans.
Interest income from municipal bonds.
Which of the following is specifically excluded from gross income? Interest on municipal bonds Alimony and separate maintenance payments Pensions Compensation for service including fees, commissions, and certain fringe benefits.
Interest on municipal bonds
Which of the following is not counted as support? Life Insurance premiums. Lodging. Clothing. Entertainment.
Life Insurance premiums.
Which of the following three factors determine the filing requirement for non dependents? Marital status, age, residency. Marital status, age, and gross income. Marital status, age, and taxable income. Marital status, age, and total deductions.
Marital status, age, and gross income.
Tax exempt interest is: Taxable and reportable. Not required to be reported. Nontaxable, but reportable. Nontaxable and not reportable.
Nontaxable, but reportable.
For tax purposes, when is a person's marital status determined? On the first day of the tax year. On the taxpayer's birthday. On the day the person files are tax return. On the last day of the tax year.
On the last day of the tax year.
Some adjustments to income do not have a specific line on the tax return and are instead included on Schedule 1, form 1040, line 36, as a "write-in" as an adjustment. All of the following are considered "write-in" adjustments EXCEPT: Jury duty payment turned over to an employer Penalty for early withdrawal from a savings account Expenses related to rental income from personal property Attorneys fees paid to settle an unlawful discrimination claim
Penalty for early withdrawal from a savings account
All of the following are types of retirement plans self-employed taxpayers may establish for themselves and their employees EXCEPT: A 401 K plan Simplified employee pensions or SEPs. Simple RA Spousal IRA
Spousal IRA
All of the following are forms of qualified Health Care coverage EXCEPT: Marketplace insurance Employer sponsored Health Insurance Standalone disability coverage Coverage provided by the children's Health Insurance program, CHIP.
Standalone disability coverage
The tax on income that comes entirely from wages under $100,000 is determined according to the: Tax Tables Tax Computation Worksheet Qualified Dividends and Capital Gain Tax Worksheet Schedule D Tax Worksheet
Tax Tables
What happens if an individual is the qualifying child of more than one taxpayer? The IRS tiebreaker rules apply. Neither taxpayer is allowed to claim the child as a dependent. Each taxpayer is eligible to claim ½, or 50%, of the child tax credit. It is acceptable for both taxpayers to claim the child as a dependent on their return.
The IRS tiebreaker rules apply.
Under what circumstances might a taxpayer, who does not meet the Federal filing requirement, want to file a Federal return any way? They are entitled to one or more refundable credits. They are entitled to one or more non refundable credits. To claim itemize deductions. If there was any state tax withheld.
They are entitled to one or more refundable credits.
Assuming all other requirements are met, how long may an eligible surviving spouse file is a qualifying widow or widower? One year. Two years. Three years. Five years
Two years.
Some types of income do not need to be reported anywhere on a Federal return. This includes all of the following except: Most Medical Insurance proceeds Workers' compensation paid to an employee who was injured on the job. Welfare benefits. Unemployment compensation
Unemployment compensation
Unearned income is all of the following except: Interest. Dividends. Wages. Alimony.
Wages.
A taxpayer eligible to claim the lifetime learning credit may receive up to $2000 for this credit. All of the following are considered qualified expenses for this credit EXCEPT: Tuition and fees paid to acquire a degree from an accredited university. Tuition and fees paid to local community college for class will approve the taxpayer's job skills. Books that must be purchased from the educational institution as a condition for enrollment. Room and board
Room and board
In 2018, Erin, 38, contributed $2000 to a traditional IRA. She is single, and her modified adjusted gross income or MAGI, is $31,000, all from wages. Aaron has never taken a distribution from any retirement account. She is potentially eligible for a retirement savings contributions credit or Saver's credit, of up to ? $0.00 $200 $400 $500
$200
Which of the following is NOT a requirement that must be met for a taxpayer qualify for head of household filing status? The taxpayer must be unmarried or qualified as unmarried, for tax purposes. The taxpayer must pay over half the cost of maintaining a home for the year. The taxpayer must be legally separated or divorced. The taxpayer's home must be in the main home of the taxpayer and their qualifying child or qualifying relative for more than half the year.
The taxpayer must be legally separated or divorced
Which of the following is incorrect regarding the requirements to be considered unmarried for tax purposes? The taxpayer must file a separate tax return from their spouse. The taxpayer must have provided more than half the cost of maintaining their home for the tax year. The taxpayer must be legally separated or divorced. The taxpayer's spouse must have not lived in the home at any time during the tax year.
The taxpayer must be legally separated or divorced
Choose the response that best completes the following sentence: Under the special rules for children of divorced or separated parents, the noncustodial parent may be entitled to: Claim a higher standard deduction. Claim the child tax credit. Claim the earned income tax credit. File as head of household.
Claim the child tax credit.
Tax preparers must exercise due diligence when preparing returns for taxpayers claiming the American Opportunity Tax Credit, AOTC. Which of the following is not one of the requirements? Complete form 8867. Knowledge. Complete form 8863. Retain records.
Complete form 8863
What is the standard deduction amount for a 68 year old single taxpayer who is also a blind? $18,000 $15,200 $13,600 $12,000
$15,200
Schedule B is required when interest income exceeds which of the following thresholds? $1000 $1500 Schedule B is always required. Schedule B is never required
$1500
For 2018 tax returns, what is the standard deduction for taxpayers using the head of household filing status? $0.00 $12,000 $18,000 $24,000
$18,000
Margaret works for a privately held corporation. She contributes to her employer's retirement savings plan through regular payroll deductions. Her contributions are tax-deferred, and so are her earnings in the plan. Her employer matches part of her contributions. Margaret most likely participates in which of the following types of employment sponsored retirement plans? Pension plan Annuity 401(K) plan 403(B) plan
401(K) plan
Which of the following statements about distributions from qualified retirement plans is TRUE? A blank amount in box 2a of form 1099 - R usually means that none of the distribution is taxable. A distribution code 4 in box 7 of form 1099 - R generally means that the taxpayer is not subject to the additional tax on early distributions. A distribution code 1 in box 7 a form 1099 R indicates a direct rollover to a qualified retirement plan or IRA. The tax code imposes an additional 10% early withdrawal penalty on all distributions may be for the taxpayer has reached age 59 1/2.
A distribution code 4 in box 7 of form 1099 - R generally means that the taxpayer is not subject to the additional tax on early distributions.
Which of the following is NOT a requirement for a taxpayer claiming the child and dependent care credit? The person providing the care must not be someone the taxpayer can claim as a dependent. A person providing the care must not be someone the taxpayer can claim as a dependent. The care must a been provided for qualifying child under age 13 The taxpayer and the person receiving the care must have lived in the same home. The taxpayer must have some earned income.
A person providing the care must not be someone the taxpayer can claim as a dependent.
The head of household filing status requires that the taxpayer maintaining a household for: A qualifying child, qualifying relative, or parent claimed as a dependent on the taxpayer's return. At least one other person. A beloved family pet. Maintaining a household for another person is not a requirement of the head of household filing status.
A qualifying child, qualifying relative, or parent claimed as a dependent on the taxpayer's return.
After suffering a debilitating injury, Ahmed, 47, retired on disability after teaching high school math for several years. He had not yet reached the minimum retirement age for the district where he worked. If a Ahmed's employers paid the premiums on his disability insurance policy using pretax dollars, how does he report the disability benefits report to him on form 1099 - R? As taxable wage income reported on Form 1040, line 1. As nontaxable wage income reported on Form 1040, line 1. As taxable pension income reported on Form 1040, line 4. As nontaxable pension income reported on Form 1040, line 4.
As taxable wage income reported on Form 1040, line 1.
Choose the response the best describes a credit that is not claimed very often because the income limits are very low, and taxpayers were eligible generally receive only a small amount. Adoption credit Child And Dependent Care Credit Foreign Tax Credit Credit For The Elderly Or Disabled
Credit For The Elderly Or Disabled
Taxpayers who have any financial interest in, or signature authority over, a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country may have to report this information by filing: FinCEN form 114 Form 1116 Form 6251 Form 8275
FinCEN form 114
Which taxpayer is required to file a tax return for 2018? Riva, age 65. She is a qualifying widow. Her gross income was $24,500. Simon, age 26. He is single, and whose gross income was $11,500, all from wages. Briann, age 27. Her filing status is head of household. Her gross income was $17,500 from all wages. Felipe', age 23. His gross income was $5750. His filing status is married filing separately.
Felipe', age 23. His gross income was $5750. His filing status is married filing separately.
Which form is required when a custodial parent release is their right to claim the child as a dependent to the non custodial parent? Form 8453. Form 8283. Form 8867. Form 8332.
Form 8332.
Which form is filed to protect one spouse when the other spouse has understated income or overstated a deduction or credit? Form 4852. Form 8332. Form 8857. Form 8379.
Form 8857
Which form is used by employers to report wages earned by their employees? Form W-2 Form W-4 Form 1098 - T Form 1099 - R
Form W-2
To file as head of household, a taxpayer must meet all of the following requirements except: Be unmarried, or considered unmarried, on the last day of the tax year. Pay more than half the cost of maintaining the household for the year. Have gross income of at least $18,000. Have maintained a household for either a qualifying child or qualifying relative.
Have gross income of at least $18,000.
James, 35, a single taxpayer, lives with his sister, Denise, who is 24 years old, and Nevea, his three year old niece. Denise works part time and earned $3600 for 2018. Denise will not claim Nevea as a dependent; whe will file her return just for the purpose of claiming a refund for the tax withheld. James earned $48,000 during the year and he pays more than half the cost of maintaining a home. What is James' correct and most favorable filing status? Head of household Single Married filing separately Married filing jointly
Head of household
Which of the following taxpayers may qualify to claim the lifetime learning credit? Morgan, 23, is single and attending class are university, where she is completing her master's create accounting. Her parents will claim her as a dependent. Kevin, a married taxpayer will file separately. He attended classes at plaster university where he is working ports a degree in business administration. Jim and Sarah, a married filing joint couple with modified adjusted gross income of $125,000. They paid tuition to plaster university for their daughter, made 22, and she obtains her master's degree in education. Marvin, 35, is single and is attending Placer University, as he obtains his master's degree in psychology. His modified adjusted gross income, is $70,000.
Jim and Sarah, a married filing joint couple with modified adjusted gross income of $125,000. They paid tuition to plaster university for their daughter, made 22, and she obtains her master's degree in education IF INCOME LEVELS ARE CORRECT
In 2018, John, a single parent, sent his daughter, Marlene, to Big Kids' Play Yard while he worked during the day. Marlene turned 13 on August 1, 2018. John paid big kids play yard $2310, $35.00 per weekday, from June 1 through August 31, 2018. He did not incur any other childcare expenses during the year, how she john report this amount on form 2441, Child And Dependent Care Expenses? John should report $2310 on line one, and $2310 on line 2. John should report $2310 on line 1, and $1505 on line 2. Judging report $1505 on line 1, and $1505 on line 2. John will not be able to claim childcare expenses because his daughter turned 13 during the year.
John should report $2310 on line 1, and $1505 on line 2.
Which of the following taxpayers may qualify to deduct student loan interest as an adjustment to income? Alanis, 23, a single taxpayer. She paid $1500 in interest on a loan she received from her grandmother when she was a Full-time student at her state university. Roger, 42, who is married filing separately. He paid $2600 in student loan interest for his daughter, Meg, when she was completing her bachelor's degree in accounting. Leah 29, a single taxpayer with modified adjusted gross income of $68,000. She received a form 1098 E, reporting $2100 of interest on a loan use to pay a commission when she was working on her undergraduate degree at a state university. Jack and Kendra, a married filing joint couple with modified adjusted gross income of $169,000. The received form 1098 - D, reporting $2600 of interest on a loan which paid to wish and a local college for their daughter, Jane, 28 which she was completing her bachelor's degree.
Leah 29, a single taxpayer with modified adjusted gross income of $68,000. She received a form 1098 E, reporting $2100 of interest on a loan use to pay a commission when she was working on her undergraduate degree at a state university
A taxpayer's spouse died in 2018, and the taxpayer did not remarry. Assuming the taxpayer has a qualifying child, what is the taxpayers most favorable and corrects filing status for 2018? Single. Head of household. Married filing separately. Married filing jointly.
Married filing jointly.
Roberta, 37, is married, but she lived apart from are husband, Leo, for the last three months of 2018. Roberta and Leo Are not divorced or legally separated. They agree that they do not want to file a joint return. They share custody of their two children, who spend an equal amount of time with both parents. What is Roberta's most favored and correct filing status? Single. Married filing jointly. Married filing separately. Head of household
Married filing separately
Taxpayers who received form 1099 - DIV, showing that they have received qualified dividends, must complete which of the following forms to compute their tax? Schedule J. Schedule B. Schedule D tax worksheet Qualified dividends and capital gain tax worksheet.
Qualified dividends and capital gain tax worksheet.
What are the four tests for qualifying relative? Relationship or member of the household, gross income, support, and residency Relationship or member of the household, gross income, citizenship, and not a qualifying child. Relationship or member of the household, gross income, support, and not a qualifying child. Relationship or member of the household, gross income, support, and be a qualifying child.
Relationship or member of the household, gross income, support, and not a qualifying child.
What are the five tests for qualifying child? Relationship, citizenship, age, support, and joint return. Relationship, residency, age, support, and joint return. Marital status, residency, age, support, and joint return. Relationship, residency, age, support, and type of income.
Relationship, residency, age, support, and joint return.
To be eligible to deduct educator expenses, a taxpayer must meet the definition of qualified educator described in the regulations. This includes: Teachers, instructors, in teacher's aides who worked in this role for at least 750 hours during a school year. Counselors and principles worked at least 750 hours during a school year. Teachers, instructors, and teachers' aides who worked in their role for at least 900 hours during a school year. Counselors, principals, an administrative assistants who worked at least 900 hours during the school year
Teachers, instructors, and teachers' aides who worked in their role for at least 900 hours during a school year
Education credits are complex, and the rules are different for each credit. Which of the following accurately describes some of the differences between the American Opportunity tax credit, AOTC, and the lifetime learning credit? The lifetime learning credit is not a refundable credit, while up to $2500 of the AOTC may be refundable. The credit for AOTC may be as much as $2500 per eligible student, while the maximum amount of lifetime learning credit is $2000 per tax return. Up to 40% of the AOTC may be refundable. The amount of lot the lifetime learning credit is 20% of qualified education expenses, and there is no cap on the amount of expenses. The credit for AOTC may be as much as 100% of the first $4000 of expenses per eligible student, while the amount of lifetime learning credit is only 20% of the first $10,000 of qualified expenses.
The credit for AOTC may be as much as $2500 per eligible student, while the maximum amount of lifetime learning credit is $2000 per tax return.
All of the following are generally considered qualified expenses for the student loan interest deduction EXCEPT: Graduate school tuition. Transportation expenses incurred for non dependent grandchild attending college in another state. Room and board and a dormitory owned and operated by the educational institution. Books and supplies.
Transportation expenses incurred for non dependent grandchild attending college in another state
