Politics And GovernmentLawTax, Ch. 4
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Tax, Ch. 4

Donald Butler avatar Donald Butler
23 July 2023
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27 test answers

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question
The income tax base for an individual tax return is
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Adjusted gross income MINUS from AGI deductions
question
Which of the following series of inequalities is generally most accurate?
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gross income ≥ ADJUSTED gross income ≥ taxable income
question
Which of the following statements regarding realized income is true?
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Realized income requires some type of transaction or exchange with a second party.
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Which of the following statements regarding exclusions and/or deferrals is false?
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An income item need not be realized in order to qualify as an exclusion item.
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Which of the following statements regarding tax deductions is false?
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From AGI deductions tend to be associated with business activities while for AGI deductions tend to be associated with personal activities.
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Which of the following statements regarding for AGI tax deductions is true?
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Taxpayers SUBTRACT for AGI deductions from gross income to determine AGI.
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All of the following are for AGI deductions except
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Charitable contributions.
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Which of the following is NOT a from AGI deduction?
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None of these. All of these are from AGI deductions.
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Which of the following is not an itemized deduction?
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Alimony paid
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Which of the following shows the correct relationship among standard deduction amounts for the respective filing statuses?
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MARRIED FILING JOINTLY > HEAD OF HOUSEHOLD > Single
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Which of the following statements regarding exemptions is correct?
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Taxpayers SUBTRACT exemption deductions from adjusted gross income in determining taxable income.
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Which of the following types of income are subject to a tax rate not provided for in the tax tables or tax rate schedules?
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Both NET long-term capital gains (in excess of short-term capital losses) and qualified dividend income
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All of the following represents a type or character of income except
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normal
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Which of the following statements is true
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Qualified dividend income is taxed at a lower rate than the same amount of ordinary income.
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Which of the following statements regarding tax credits is true?
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Tax credits reduce TAXES PAYABLE dollar for dollar.
question
Which of the following statements regarding personal and dependency exemptions is FALSE?
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To qualify as a dependent of another, an individual must be a resident of the United States.
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Which of the following statements regarding personal and dependency exemptions is TRUE?
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To qualify as a dependent of another, an individual MUST BE EITHER a qualifying child or a qualifying relative of the other person.
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All of the following are tests for determining qualifying child status except the ______.
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GROSS INCOME test
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Which of the following relationships does NOT pass the relationship test for a qualifying child?
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COUSIN
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In order to be a qualifying relative of another, an individual's gross income must be less than ________.
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the personal and dependency exemption amount
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All of the following are tests for determining qualifying relative status except ______.
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RESIDENCE test
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Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?
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The SUPPORT TEST for qualifying relatives focuses on the support the potential dependent self provides while the support test for qualifying children focuses on the support the taxpayer provides.
question
Filing status determines all of the following except ____________
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the STANDARD AMOUNT of each personal and dependency exemption.
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Which of the following is not a filing status?
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Unmarried
question
Which of the following statements about a qualifying person for head of household filing status is true?
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A QUALIFYING PERSON must have a family relationship with the taxpayer in order for the qualifying person to qualify the taxpayer for head of household filing status.
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Which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year for filing status purposes?
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The SPOUSE does not live in the taxpayer's home at all during the year.
question
For filing status purposes, the taxpayer's marital status is determined at what point during the year?
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the END of the year