Question 1 of 50Hcourse

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Johnson County Community College *

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132

Subject

Economics

Date

Jan 9, 2024

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docx

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Uploaded by EarlExploration10542

Question 1 of 50. A taxpayer should include which of the following when figuring their federal gross income? Gifts and inheritances. Life insurance payments, if paid by reason of the death of the insured. Meals and lodging provided for the convenience of the employer Prizes and awards. Mark for follow up Question 2 of 50. Malachi has a savings account at his local credit union. He earned $50 on deposits made to this account. How is this income reported on his tax return? The income will be reported as: Nominee interest. Ordinary dividends. Qualified dividends. Regular interest. Mark for follow up Question 3 of 50. To avoid the risk of penalties, tax preparers must abide by rules regarding preparer tax identification numbers (PTINs). Which of the following statements is TRUE regarding PTINs? A PTIN is required semi-annually for anyone who prepares or assists in preparing federal tax returns for compensation. If a tax preparer does not have a PTIN, they can still prepare tax returns for compensation. The IRS may provide a PTIN to taxpayers who are victims of identity theft. The preparer must enter their PTIN on the tax return in the space provided. Mark for follow up Question 4 of 50. Lucca has a financial interest in a financial account in a foreign country. Where should this be reported on his tax return? Part I of the Schedule B (Form 1040). Part II of the Schedule B (Form 1040). Part III of the Schedule B (Form 1040). Part II of Schedule 1 (Form 1040). Mark for follow up Question 5 of 50.

Vanida received workers' compensation due to an injury on the job. When Vanida files her tax return, her workers' compensation income will be: Fully taxable. Nontaxable. Partially taxable. Taxable at the discretion of the employer. Mark for follow up Question 6 of 50. Which of the following is an example of unearned income? Compensation received by a self-employed, freelance writer for services provided. Interest earned on a savings account. Tips. Wages from a part-time job. Mark for follow up Question 7 of 50. Rachel is a restaurant hostess with tip income. Which of the following statements would help her to report her tip income accurately? Any tips Rachel receives are excluded from gross income and are not subject to federal income tax. If Rachel does not report her tips to her employer, they are not taxable. Rachel should use Form 4070-A, Employee's Daily Record of Tips , to keep a daily record of her tip income. Tips under $20 a month are not taxable. Mark for follow up Question 8 of 50. Omari (47) is single. He had wages of $45,950. In 2022, he opened an interest-bearing savings account and received Form 1099-INT, Interest Income , showing he had earned $16 of interest income for the year. What amount of interest must be reported on his Form 1040? $0 $8 $10 $16 Mark for follow up Save / Return Later Summary Next » Chapter 1 - Part 1: Wages, Income, and Taxes

Question 9 of 50. Which of the following should be included in an individual taxpayer's federal gross income? Child support payments received in accordance with a pre-2019 divorce decree. No changes have been made to the agreement. Disaster relief payments. Jury duty pay. Welfare benefits. Mark for follow up « Back Save / Return Later Summary Next » Chapter 2: Filing Requirements Question 10 of 50. Michael and Amina are married and lived in a community property state the entire year. Michael earned $40,000 in wages, and Amina earned $60,000. If Michael and Amina file separate returns, how much income will be reported on their returns? Michael: $20,000; Amina: $30,000. Michael: $40,000; Amina: $60,000. Michael: $50,000; Amina: $50,000. Michael: $100,000; Amina: $0. Mark for follow up Question 11 of 50. Kiri and Divina are registered domestic partners. Neither had dependents they could claim for 2022. What is Kiri's and Divina's correct and most favorable 2022 filing status on the federal return? Single. Married filing jointly. Married filing separately. Qualifying surviving spouse. Mark for follow up

Question 12 of 50. Which of these individuals would be subject to the "kiddie tax"? Dana, age 12, earned $800 in dividends, with no other income. Gia, age 15, worked as a lifeguard all summer and earned $2,800 with no other income. Kyle, age 14, earned $1,000 in interest and had a $1,800 royalty from a family oil well. He had no other income. Paul, age 19, is taking a year off before starting college. He received $4,200 in dividends with no other income. Mark for follow up Question 13 of 50. Seth and Marisol were divorced on December 1, 2022. Neither had dependents they could claim for 2022. What is Seth's correct and most favorable 2022 filing status? Single. Married filing jointly. Married filing separately. Head of household. Mark for follow up Question 14 of 50. What is the due date to file a 2022 Form 1040, U.S. Individual Income Tax Return , or request an extension? January 31, 2023 April 18, 2023 June 15, 2023 October 16, 2023 Mark for follow up Question 15 of 50. Maleko (55) and Luni (50) will file married filing jointly. Neither is blind. What is their 2022 standard deduction? $19,400 $25,100 $25,900 $27,300 Mark for follow up « Back Save / Return Later Summary Next »

Chapter 2: Filing Requirements Question 16 of 50. Dante and Paris were married in 2017. They have not divorced. Dante does not know the whereabouts of Paris and has not spoken with her in three years. He does not have any dependents. What is Dante's correct and most favorable 2022 filing status? Single. Married filing jointly. Married filing separately. Head of household. Mark for follow up « Back Save / Return Later Summary Next » Chapter 3: Qualifying Dependents and Support Question 17 of 50. What are the first three tests (or requirements) a taxpayer must meet to claim a qualifying child or qualifying relative as a dependent? Dependent taxpayer, joint return test, and citizen or resident test. Dependent taxpayer, joint return test, gross income test. Not a qualifying child test, gross income test, and support test. Relationship test, age test, and residency test. Mark for follow up Question 18 of 50.

Which taxpayer has a potential qualifying child that meets the age test? (Unless stated, none of these individuals are permanently or totally disabled.) Aiyden and Zuri are married and have a son, Caleb (25). Caleb is unmarried and a full-time student. Caleb earned $11,000, all from wages, and he did not provide more than half of his own support. Caleb lives on campus while school is in session. During the summer, Caleb lives with Aiyden and Zuri. Lexi (42) has a daughter, Josie (19). Josie is unmarried and lived with Lexi all year. Josie decided to take a year-long break from school before starting college. She worked part-time and earned $10,500, all from wages. She did not provide more than half of her own support. Omana (21) and her brother, Benji (23), lived together all year. Benji is unmarried and a full-time student. Benji had no income and did not provide more than half of his own support. Rohan (23) and his sister, Annie (25), lived together all year. Rohan and Annie are both unmarried. Annie is permanently and totally disabled. Annie had no income, and did not provide more than half of her own support. Mark for follow up Question 19 of 50. Which of the following potential dependents fails the support test to be claimed as a qualifying child ? Blake (18) is unmarried and worked full-time. She saved all of her income. She lived with her parents all year and they provided all of her support. Devan (18) is unmarried and worked full-time. He had significant income and paid more than half of his own support. He lived with his mother all year. Nova (16) lived with her brother Sam (26) all year. She had no income. Sam provided all of her support. Xavier (23) is unmarried and attended school nine months of the year. He lived on campus for those nine months and with his parents during school breaks. He worked part-time and earned $7,400. He did not provide more than half of his own support. Mark for follow up Question 20 of 50. All of the following statements regarding a taxpayer's identification number are true, EXCEPT? A dependent on a tax return, can have a social security number, individual taxpayer identification number, or an adoption taxpayer identification number. A social security number, individual taxpayer identification number, or an adoption taxpayer identification number is not required for a taxpayer to claim a qualifying relative . A social security number, individual taxpayer identification number, or an adoption taxpayer identification number must be received before the due date of the return, including extensions, or the taxpayer may not claim the dependent on that year's tax return. A taxpayer may not amend a return to add a dependent whose identification number was received after the due date of the return. Mark for follow up Question 21 of 50. Which taxpayer has a potential qualifying child that meets the residency test? Cedro (52) is single. His grandson, Zack (15), came to live with him in September of 2022. Zack did not provide more than half of his own support. Donald (26) is single. His brother, John (17), lived with him for five months of 2022. John is unmarried and did not provide more than half of his own support.

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