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6. Which of the following individuals is required to file atax return?
a. John, age 66, who is single, and whose income consists of$22,000 in social security benefits and a $4,800 pension.
b. George, age 25 and single, whose W-2 shows $5,000 wages and$600 in federal withholding.
c. Mary, age 27 and single, whose W-2 shows $4,000 in wages,and has net income from self-employment of $500.
d. all of the above
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7. Tom and Ruth want to file as married filing separately. IfTom wants to itemize his casualty losses, thenâ¦
a. they must file jointly.
b. Ruth must take the standard deduction.
c. Ruth must either itemize her deductions or claim a zerostandard deduction.
d. none of the above
Criterion 3
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1. Which of the following items would be included in grossincome?
a. Interest from a municipal bond.
b. An inheritance.
c. Unemployment benefits.
d. Child support.
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2. Under what circumstances must a person report taxableincome?
a. Always.
b. Always, unless the income is only from interest.
c. Always, unless the income is so small that a tax return isnot required.
d. Always, unless the person is identified as a dependent onsomeone elseâs return.
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3. Which of the following types of income is subject topreferred (lower) tax rates?
a. Interest on savings accounts.
b. Interest from a credit union.
c. Qualified dividends.
d. all of the above
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4. In 2015, Cheryl, who is single and not a dependent ofanother taxpayer, has taxable income of $30,000. Using theabbreviated 2015 tax schedule for single filers below, compute hertax liability. $ 0 to $ 9,225 10% , $9,225 to $37,450 15%
a. $4,039.
b. $4,500.
c. $5,423.
d. none of the above
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5. Using the same facts as in the question above, computeCherylâs tax liability if her income consisted of $26,000 in wagesand $4,000 in long term capital gains.
a. $4,500.
b. $4,039.
c. $3,840.
d. $3,439.
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6. Referring to the facts in Question 4, what would Cherylâstax liability be if the $30,000 included $6,000 she withdrew fromher IRA to pay off her credit cards. Cheryl is 35.
a. $4,039.
b. $4,500.
c. $4,639.
d. $5,239.
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7. Which of the following taxpayers is required to take aminimum distribution from their retirement account?
a. Pete, who has a 401-K and is age 68 and retired.
b. Roger, who has a 401-K with his employer, and is stillworking at age 73.
c. Don, who is still working at age 71, and has an IRA.
d. Roger and Don, but not Pete.