Multiple choice questions
1. Which of the following would disqualify a taxpayer from filing Form 1040EZ?
a. The taxpayer is married.
b. The taxpayer is age 66.
c. The taxpayer received unemployment compensation.
d. The taxpayer had adjusted gross income (line 4 of Form 1040EZ) of $101,000.
2. The most complex individual income tax return is a Form:
a. 1040.
b. 1040A.
c. 1040C.
d. 1040EZ.
3. Wage income is reported to a taxpayer on a Form:
a. W-2.
b. 1099-G.
c. 1099-W.
d. 1099-INT.
4. Interest income is reported to a taxpayer on a Form:
a. W-2.
b. W-2-INT.
c. 1099-G.
d. 1099-INT.
5. On a Form 1040EZ, the amount of the permitted deduction from income for taxpayers filing a joint return is:
a. $1,500.
b. $10,150.
c. $20,300.
d. $30,450.
6. Elizabeth determined her tax liability was $3,942. Her employer withheld $3,492 from her paychecks during the year. Elizabeth’s tax return would show:
a. a refund of $450.
b. a refund of $3,492.
c. tax due of $450.
d. tax due of $3,942.
7. Sandra, a single taxpayer, has taxable income of $87,937. Using the tax tables, she has determined that her tax liability is:
a. $13,694.
b. $16,394.
c. $17,838.
d. $18,243.
8. A married taxpayer has taxable income of $47,861. You have calculated tax liability using the tax tables and using the tax rate schedules. What can you say about the two figures?
a. Tax liability determined using the tax tables will be more than tax liability determined using the tax rate schedules.
b. Tax liability determined using the tax tables will be less than tax liability determined using the tax rate schedules.
c. Tax liability determined using the tax tables will be the same as tax liability determined using the tax rate schedules.
d. The answer cannot be determined with the information provided.