1. Morgan Freeman, an 86-year-old widower, lost his wife in 2020 and has remained single since. With no dependents, he currently resides by himself. What would be his standard deduction for the tax year 2023?
a) $13,850
b) $27,700
c) $15,700
d) $29,000
e) None of these
2. Tim (age 65) and Lena (age 58) Burton are married and will file a joint tax return. Their standard deduction for tax year 2023 is:
a) $27,700
b) $29,200
c) $30,700
d) None of these
3. Taxpayer aged 70, spouse aged 63, filing married filing separately. The taxpayer earns $23,000.00 in income, while the spouse earns $1,200.00. What is the filing requirement for the spouse based on the information provided?
a) Not required to file
b) Required to file
c) Partially required to file
d) Insufficient information to determine
4. Taxpayer and spouse filing a joint personal tax return each maintain separate bank accounts. Taxpayer pays all household bills. The spouse uses Zelle to transfer $2,000.00 per month to the taxpayer from her account. Taxpayer receives a 1099-K for $24,000.00. How would you treat the 1099-K on their personal return?
a) 1099-K is reportable and taxable
b) 1099-K is reportable and not taxable
c) 1099-K is not reportable and not taxable
d) Requires a schedule C
5. Martha Stewart sells homemade pies during the holiday season as a hobby. She receives a 1099-K in the amount of $723.00 for payments received through Square. How will she report this income?
a) Income must be reported on Schedule C
b) Income does not need to be reported
c) Income must be reported as Other Income
d) Income must be reported on line 1 of the 1040 as wages
6. What does the Kiddie Tax refer to in the context of U.S. taxation?
