Individual Income Tax Accounting Review
Which of the following is not a deduction for AGI on an individual taxpayer’s tax return?
Ann’s husband died last year. Ann maintains a household where she and her 8-year-old daughter reside for the tax year. On her tax return, she properly claims her daughter as a dependent. For the current year, Ann should file her tax return as:
Carol is 20 years old and single. Her parents properly claim her as a dependent on their joint tax return. During 2013, Carol had the following income and expense items:
- Wages from a part-time summer job $3,000
- Interest income from her own savings account 2,500
- State and local income taxes paid 800
- State and local sales tax paid 200
Carol’s 2013 taxable income is:
Std. ded. (3,350)
The minimum percentage of support that a member of a multiple support group must provide to claim a dependency exemption for the supported person is more than:
Dorsey and Thelma Packard (ages 42 and 45) file a joint return. They claim Dorsey’s blind mother (age 67) as a dependent. The Packards’ 2013 standard deduction is:
- Basic standard deduction (MFJ) = $12,200
- No deduction for Dorsey’s blind mother
Education tax credits are reported on:
The full child tax credit is available to unmarried taxpayers whose AGI does not exceed:
A 25-year-old files Form 1040EZ and indicates that another taxpayer can claim him as a dependent. This taxpayer may not:
Claim an earned income credit.
Claim an exemption for him or himself.
Which of the following is a refundable credit?
The earned income credit
Is Head of Household the most advantageous filing system Teresa can use?
No, filing as a qualifying widow(er) is the more favorable filing status.
Because Zach is disabled and meets the other tests, Teresa can claim him as a qualifying child for the earned income credit.
What is Teresa’s total federal income tax withholding?
What is the credit for child and dependent care expenses on Form 2441, line 11?
- Amount paid is $2,800
- Income is $41,800
Teresa has three qualifying children for the child tax credit.
False. Because Zack is over the age of 17, Teresa has only two qualifying children.
Teresa must pay a 10% additional tax on the distribution from her 401(k) because she is under 59 ½ years old and does not qualify for an exemption.