Questions and Answers of Canadian Business And The Law

Ramon, a single taxpayer with no dependents, has adjusted gross income for 2022 of $98,000 and his itemized deductions total $13,000. What taxable income will Ramon show in 2022?a. $74,950b.
Brock, age 50, and Erin, age 49, are married with three dependent children. They file a joint return for 2022. Their income from salaries totals $50,000, and they received $8,000 in taxable interest,
Which of the following statements related to standard and itemized deductions is correct?a. A taxpayer may only deduct the lower of itemized deductions or the standard deduction.b. A taxpayer may
Jackson, age 35, and Peggy, age 34, are married and file a joint income tax return for 2022. Their salaries for the year total $85,400 and they have dividend income of $4,000. They have no deductions
Which of the following is not a from AGI deduction?a. The exclusion of an item of gross incomeb. Itemized deductions, if takenc. Standard deduction, if takend. The qualified business income deduction
Wanda is a single 50-year-old taxpayer with no dependents. Her only 2022 income is $41,000 of wages. Calculate her taxable income and her tax liability assuming no tax credits. Please show your work.
The gross income threshold to require a federal income tax return for a single taxpayer is equal to:a. The sum of the taxpayer’s itemized deductions.b. The same as the current year standard
Griffin is a server at a California restaurant. Griffin received $1,200 in unreported tips during 2022 and owes Social Security and Medicare taxes on these tips. His total income for the year,
Ben is a single taxpayer with no dependents and is 32 years old. What is the minimum amount of income that he must have to be required to file a tax return for 2022?a. $4,300b. $12,400c. $12,550d.
Abed and Anahita are married filing jointly. Abed is 65 and Anahita is 63 and they also care for Anahita’s mother and claim her as a dependent. What is the 2022 filing threshold for Abed and
Anahita is single, 82 years old, and blind. She is claimed as a dependent by her daughter and spouse, who file jointly. Anahita has no earned income but did receive $3,800 of investment (unearned)
For each of the following taxpayers, indicate the filing status for the taxpayer(s) for 2022 using the following legend:A—SingleB—Married filing a joint returnC—Married filing separate
Joan, who was divorced in 2022, had filed a joint tax return with her husband in 2021. During 2022, she did not remarry and continued to maintain her home in which her two dependent children lived.
Karl is a single taxpayer and has listed his brother, Jonas, as a dependent (qualifying relative). Head of household filing status seems preferable for Karl. What questions should you ask Karl to
Glenda, a single taxpayer from Kansas, paid for more than one-half of the support for her mother, Dorothy. Dorothy did not live with Glenda in Kansas, but rather has lived in a nursing home in an
Angela’s spouse died in 2022. She has no dependent children, but she pays the entire cost to maintain her home. What is Angela’s most advantageous filing status in the current year?a. Singleb.
Angela’s spouse died in 2021. She has two dependent children, and she pays the entire cost to maintain her home. What is Angela’s most advantageous filing status in the current year?a. Singleb.
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
Kardi, age 65, and Kanye, 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 $4,600 this year
Yasmine and her spouse Carlos, who file married filing jointly with 2022 AGI of $130,000, provide all the support for their 16-year-old son, Miguel. If Miguel qualifies as a qualifying child under
In 2022, Lakota and Dominique file married filing jointly and have a 13-year-old daughter. They also provide 25 percent of the support for Lakota’s 82-year-old mother, who lives in a nursing home
In 2022, Alexandria is a single mother with a 17-year-old dependent child. Alexandria’s adjusted gross income in 2022 is $78,000. What is the total amount of Alexandria’s child tax credit and
Morgan is 65 years old and single. He supports his father, who is 90 years old, blind, and has no income. What is Morgan’s standard deduction?a. $21,150b. $19,400c. $20,300d. $18,800e. $20,500
Taxpayers who are 65 or older get the benefit of:a. An additional exemptionb. An additional amount added to their standard deductionc. An additional amount added to their itemized deductionsd. None
Describe the three possible limits that can be used to compute the standard deduction for a taxpayer that can be claimed as a dependent.
Taxpayers who are blind get the benefit of:a. An additional exemptionb. An additional amount added to their standard deductionc. An additional amount added to their itemized deductionsd. None of the
List the three types of individual taxpayers that are not eligible for the standard deduction.
Marta, a single, 19-year-old, full-time student, is claimed as a dependent by her parents in 2022. She has earned income of $3,000 and unearned income of $130. What is Marta’s 2022 standard
Which of the following is not a capital asset to an individual taxpayer?a. Stocksb. A 48-foot sailboatc. Raw land held as an investmentd. Inventory in the taxpayer’s businesse. All of the above are
Myrtle, a single, 19-year-old, full-time student, is claimed as a dependent by her parents in 2022. She has earned income of $13,000 and unearned income of $130. What is Myrtle’s 2022 standard
Joyce purchased General Electric stock four years ago for $10,000. In the current year, she sells the stock for $25,000. What is Joyce’s gain or loss?a. $15,000 long-term gainb. $15,000 short-term
Alex purchased a rental house four years ago for $270,000. Her depreciation at the time of the sale is $40,000. Due to a decrease in real estate prices, she sells the house for only $240,000 in 2022.
Describe how a tax preparer can obtain a taxpayer signature on an electronically-filed tax return.
Dorit, a single taxpayer, has a long-term capital loss of $7,000 on the sale of bonds in 2022 and no other capital gains or losses. Her taxable income without this transaction is $43,000. What is her
List the documents the IRS recommends a tax preparer retain when electronically filing a taxpayer’s return.
Access the Internet and go to www.irs.gov and select “Search Forms & Instructions.” Enter “1040” into the search box. What is Line 7 of the 2022 Form 1040?a. Other incomeb. Multiply Line
If a tax preparer provides a PIN for the taxpayer:a. The taxpayer must also provide prior year AGIb. The tax preparer must obtain a signed Form 8878 or 8879c. The e-filing must go directly to the
Electronically-filed tax returns:a. May not be transmitted from a taxpayer’s home computerb. Constitute over 90 percent of the returns filed with the IRSc. Have error rates similar to paper

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