1. The current income tax system was:
a. Designed solely to raise money to run the government
b. Authorized by the founding fathers when the government was formed
c. Not designed with social objectives in mind
d. Authorized by the Sixteenth Amendment to the Constitution in 1913
e. None of the above
2. Partnership income is reported on:
a. Form 1040
b. Form 1120
c. Form 1040X
d. Form 1065
3. Which of the following is a deduction for adjusted gross income in 2014?
a. Personal casualty losses
b. Medical expenses
c. Student loan interest
d. Charitable contributions
e. None of the above

4. All of the following are itemized deductions in 2014 except:
a. Charitable contributions
b. Alimony payments
c. Casualty losses
d. Medical expenses

e. All of the above are itemized deductions
5. Ramon, a single taxpayer with no dependents, has adjusted gross income for 2014 of $98,000 and his itemized deductions total $19,000. What taxable income will Ramon show in 2014?
a. $79,000
b. $75,100
c. $75,050
d. $81,650
e. $85,600
6. Ben is a single taxpayer with no dependents who is 32 years old. What is the minimum amount of income that he must have to be required to file a tax return for 2014?
a. $6,200
b. $12,400
c. $10,000
d. $10,150
e. None of the above
7. Joan, who was divorced in 2014, had filed a joint tax return with her husband in 2013. During 2014, she did not remarry and continued to maintain her home in which her five dependent children lived. In the preparation of her tax return for 2014, Joan should file as:
a. A single individual
b. A qualifying widow(er)
c. Head of household
d. Married, filing separately
e. None of the above
8. Margaret and her sister support their mother and together provide 85 percent of their mother’s support. If Margaret provides 40 percent of her mother’s support:
a. Her sister is the only one who can claim their mother as a dependent.
b. Neither Margaret nor her sister may claim their mother as a dependent.
c. Both Margaret and her sister may claim their mother as a dependent.
d. Margaret and her sister may split the dependency exemption.
e. Margaret may claim her mother as a dependent if her sister agrees in a multiple support agreement.
9. Margaret, age 65, and John, age 62, are married with a 23-year-old daughter who lives in their home. They provide over half of their daughter’s support, and their daughter earned $4,000 this year from a part-time job. Their daughter is not a fulltime student. How many exemptions should Margaret and John claim on a joint return for 2014?
a. 2
b. 3
c. 4
d. 5
e. 6
10. Lyn, age 65, and Robert, age 66, are married and support Lyn’s father (no taxable income) and Robert’s mother, who has $2,200 of gross income. If they file a joint return for 2014, how many exemptions may Lyn and Robert claim?
a. 2
b. 3
c. 4
d. 5
e. 6

  • CreatedJuly 16, 2015
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