Reference no: EM133108053

Questions -

Q1. Jim's wife died four years ago. He maintains a household where he and his 8-year-old daughter reside for the tax year. On his tax return, he properly claims his daughter as a dependent. For the current year, Jim should file his tax return as:

a. Married taxpayer filing separately

b. Qualifying widow(er)

c. Head of household

d. Single individual

e. None of the above

Q2. Carol is 20 years old and single. Her parents properly claim her as a dependent on their joint tax return. During 2021, Carol had the following income and expense items:

Wages from a part time job $3000

Interest Income from her saving account $2500

State and local income taxes paid $800

State and local sales tax paid $200

Carol's 2021 taxable income is:

a. $0

b. $2150

c. $4450

d. $1950

e. $1750

Q3. A 70-year-old surviving widow with good eyesight is not claimed as a dependent on anyone else's tax return and claims no dependents on their return. The widow's gross income threshold for purposes of filing a return in 2021 is:

A. $11200

B. $12550

C. $13900

D. $14250

E. $25100

Q4. Which of the following persons do not pass both the age and relationship tests for a qualifying child?

A. The taxpayer's 24-year-old son who is a fulltime college student

B. The taxpayer's 17-year-old niece who is a senior in high school

C. The taxpayer's 30-year-old daughter who is permanently and totally disabled

D. None of the above passes both the age and relationship tests for a qualifying child

E. All of the above pass both the age and relationship tests for a qualifying child

Q5. Which of the following persons can the taxpayer claim as a dependent? Assume that each of the following unmarried persons live with the taxpayer during the year.

A. The taxpayer's 13-year-old daughter who has $4,500 of interest income

B. The taxpayer's 70-year-old parent who dies during the year and has no gross income

C. The taxpayer's 15-year-old niece who has no gross income

D. None of the above can be claimed as the taxpayer's dependent

Q6. Tammy (unmarried, age 56) claims her elderly mother (age 74) as a dependent. Tammy's mother does not live with her, but Tammy pays for almost all of the costs of maintaining her mother's household. Tammy's 2021 standard deduction is:

A. $25100

B. $19950

C. $20300

D. $12550

E.18800

Q7. Bobby (unmarried, age 66) maintains a household where his elderly father (age 88) lives. Bobby cannot claim his father as a dependent because his father does not pass the gross income test. Bobby's 2021 standard deduction is:

A. $13500

B. $14250

C. $12500

D. $15500

E. $14200

Q8. A married couple filing jointly can increase their standard deduction by $5,400 if both are elderly and blind. True OR False.

Q9. In order for a person who does not meet the definition of a qualifying child or qualifying relative to be claimed as a dependent, the person must live with the taxpayer during the entire year (except for temporary absences to attend school, take vacations, etc.). True OR False

Q10. If a married couple decides to file separate returns in one year, they cannot file a joint return in the following tax year. True OR False

Q11. The gross income threshold for a 36-year-old unmarried taxpayer who claims her two children as dependents and files as head of household is $____________.

Q12. In computing taxable income, trade and business deductions of a business owner are deductible FOR or FROM AGI?

Q13. The 2021 standard deduction for a 21-year-old dependent with $6,000 of earned income, $4,000 of interest income, and good vision, is $____________.

Q14. The 2021 taxable income of a 18-year-old dependent with $5,300 of wages, $1,000 of interest income, and good vision, is $____________.

Q15. Which of the following credits may be carried over if not entirely utilized in the current year?

A. child tax credit

B. child and dependent care credit

C. adoption credit

D. earned income credit

E. premium tax credit

Q16. When a taxpayer with three qualifying persons computes the child and dependent care credit, the law (in normal years other than 2020 and 2021) limits the eligible dependent care expenses to:

A. $2500

B. $3000

C. $5000

D. $6000

E. $9000

Q17. The maximum per student American opportunity education tax credit available is:

A. $1500

B. $2000

C. $2500

D. $3000

E. $4000

Q18. A taxpayer works two jobs during 2021. She earns $71,400 at the first job, and $76,200 at the second job. Each employer withholds the correct amount of FICA taxes (OASDI and Medicare). The taxpayer's excess OASDI withheld for 2021 equals:

A. $211

B. $297

C. $422

D. $367

E. $594