q1

Eugene and Velma are married. For 2018, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Eugene's itemized deductions are $14,200 so he is going to itemize. Velma's itemized deductions are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Velma's taxable income?

a. $26,000

b. $21,950

c. $18,000

d. $14,000

e. None of these choices are correct.

q2

Oscar and Mary have no dependents and file a joint income tax return for 2018. They have adjusted gross income (all wages) of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2018 income tax return?

a. $93,600

b. $140,000

c. $110,000

d. $116,000

e. $102,000

q3

In which of the following situations is the taxpayer not required to file a 2018 income tax return?

a. When an individual has a current year income tax refund and would like to obtain it.

b. When the taxpayer is a single 67-year-old with wages of $9,800.

c. When the taxpayer is a 35-year-old head of household with wages of $18,800.

d. When the taxpayer is a 69-year-old widow (spouse died 3 years ago) with wages of $16,500 and no dependents.

e. When the taxpayers are a married couple with both spouses under 65 years old with wages of $26,000.

q4

Robert is a single taxpayer who has AGI of $145,000 in 2018; his taxable income is $122,000. What is his federal tax liability for 2018?

a. $9,480.00

b. $18,719.00

c. $29,280.00

d. $29,089.50

e. $23,569.50