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Exam 14: The Individual Tax Formula

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Question 61

True/False

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Bill and Afton are married and file a joint tax return.Bill is 67 and Afton is 66,and neither is legally blind.Their standard deduction for 2019 is $27,000.

A) True
B) False

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Question 62

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An extension of the time to file an individual tax return also extends the time to pay any balance of tax due with the return.

A) True
B) False

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Question 63

Multiple Choice

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Mr.and Mrs.Borem spent $1,435 for child care for their two dependent children,who are two and four years old.Mr.Borem's earned income was $55,870,Mrs.Borem had no earned income,and the AGI on their joint return was $66,210.Calculate their dependent care credit.

The majority of individual taxpayers take the standard deduction rather than itemizing their deductions.

Mr.and Mrs.Anderson file a joint return.They provide more than 50% of the financial support of their two children,Dana,age 26,and John,age 17.Both children live in the Andersons' home.Dana earned $7,100 from a part-time job,while John earned no income this year.Which of the following statements is true?

Determine Mr.Smith's 2019 filing status in each of the following independent cases. a.Mr.Smith and Mrs.Smith were legally divorced on December 1.Mr.Smith has not remarried and has no dependent children. b.Mr.Smith and the first Mrs.Smith were legally divorced on February 10.Mr.Smith remarried the second Mrs.Smith on December 5.He has no dependent children. c.Mrs.Smith dies on June 22.Mr.Smith has not remarried and has no dependent children. d.Mrs.Smith died on November 1,2017.Mr.Smith has not remarried and maintains a home for one dependent child. e.Mrs.Smith died on April 3,2018.Mr.Smith has not remarried and has no dependent children. f.Mr.and Mrs.Smith were legally divorced on September 10,2016.Mr.Smith has not remarried and maintains a home for his two dependent children.

Charlie is single and provides 100% of the financial support for his dependent mother,Angela,who lives with Charlie.Charlie's filing status is head of household.

Mr.and Mrs.Cox reported $490,000 AGI on their joint return.The couple has three dependent children under age 17.Compute their child tax credit.

The standard deduction is not deductible in the computation of alternative minimum taxable income.

Kent,an unmarried individual,invited his widowed father,Martin,to move into his home in January of this year.Martin's only income item was a $14,000 taxable pension from his former employer.Kent provides about 75% of his father's financial support.What is Kent's filing status for the year?

Mr.and Mrs.Lansing,who file a joint tax return,have four dependent children under age 17.Which of the following statements is false?

Mr.and Mrs.Kline file a joint return on which they claim the standard deduction.If the taxable income on their return is $35,000,they are not paying a marriage penalty.

Every individual taxpayer is entitled to an AMT exemption,the amount of which varies with filing status.

Mrs.Lincoln was employed by GGH Inc.until October,when he accepted a new position with Murdock Inc.Mrs.Lincoln earned $145,000 compensation from GGH and $36,000 compensation from Murdock.Which of the following statements is false?

Ms.Dorley's regular tax liability on her Form 1040 is $451,890.Which of the following statements is true?

Which of the following statements describing individual tax deductions is false?