Multiple Choice Questions
1. A single taxpayer is 27 years old and has wages of $17,000 and interest income of $450. Which is the simplest tax form this person can file?
a. 1040.
b. 1040EZ.
c. 1040A.
d. 1040Z.
2. Payment of alimony by the taxpayer is a for AGI deduction. Which form can the taxpayer use to claim this benefit?
a. Either 1040 or 1040A.
b. 1040A.
c. 1040.
d. None of the above.
3. A taxpayer is married with a qualifying child (dependent), but she has been living separately from her spouse for the last eight months of the year. However, she paid for more than half of the cost of keeping up the household. Her spouse does not want to file jointly. What filing status must she use when filing her tax return? She wants to obtain the maximum legal benefit.
a. Married filing separately.
b. Single.
c. Qualifying widow(er).
d. Head of household.
4. A taxpayer’s spouse died on December 31, 2013. He has no qualifying child. Which status should the taxpayer select when filing his 2014 tax return?
a. Qualifying widow(er).
b. Married filing jointly.
c. Single.
d. Married filing separately.
5. Esmeralda is 20 years of age and a full-time student living with her parents. She had wages of $500 ($50 of income tax withholding) for 2014. Can Esmeralda claim her own exemption on her return even though her parents will claim her as a dependent?
a. Yes, Esmeralda can claim the exemption.
b. No, Esmeralda cannot claim the exemption.
c. Esmeralda and her parents can both claim the exemption.
d. No one can claim the exemption for Esmeralda.
6. What is the amount of the personal and dependency exemptions for 2014?
a. $3,950.
b. $3,700.
c. $3,900.
d. $3,800.
7. To be a qualifying child, the taxpayer must meet three general tests and five specific tests. Which of the following is not part of the five specific tests?
a. Support test.
b. Age test.
c. Gross income test.
d. Relationship test.
8. To be a qualifying relative, who has to live in the home of the taxpayer for the entire year?
a. Father.
b. Child.
c. Stepchild.
d. Cousin.