1. If Sam, single 23 years old, has itemized deductions of $7,000. What would Sam file as his standard deduction versus his itemized deductions? a. $7,000 b. $6,200 c. $13,200 d. $0

2. Which of the following individuals is not required to file a tax return? a. Single individual, 25 years old, with gross income of $12,000 b. Married couple filing jointly, both 50 years old, with gross income of $30,000 c. Head of household individual, 40 years old, with gross income of $10,000

3. Which would be the standard deduction for a qualifying widow(er)? a. $12,400 b. $6,100 c. $9,100

4. James is 20 years old and is a full-time student at Local University. James still lives at home with his parents and earned $2,500 from a part-time during his summer break. James is the biological son of his parents and his parents provide far more than 50% of James support for the tax year. Based on these facts, James is a qualifying child and James parents can claim James as a dependent of their tax return. a. True b. False

5. Shannon has the following types of income; $40,000 from her full-time job, $2,000 of unemployment benefits, $25,000 in life insurance benefits from the death of her father, $10,000 in alimony payments, $5,000 in total winnings from a game show she attended, $6,000 in child support payments, and $100,000 in land she inherited from her fathers death. How much is Shannons total gross income? a. $188,000 b. $63,000 c. $57,000 d. $40,000

6. A child/dependent can be a resident of Canada or Mexico and still pass the US citizenship test of a qualifying child/dependent. a. True b. False

7. Laws have been passed recently that lowered the tax rate of higher income individuals because they were already being taxed at 35% a. True b. False

8. If Bob is paying Tina $1,000 per month for alimony and the alimony is said to reduce by 40% once their daughter turns 18 then how much can Bob deduct on his taxes per month? a. $1,000 b. $400 c. $600

9. John and Janet are both 67 years old and have AGI of $100,000. They also had the following medical expenses; $10,000 for necessary dental surgery for John, $500 for necessary doctor visits for Janet, and $15,000 for unnecessary cosmetic surgery for Janet. How much of these medical expenses can John and Janet deduct for their itemized deductions? a. $3,000 b. $18,000 c. $25,500 d. $10,000

10. Samantha receives $20,000 annually from life insurance proceeds as well as $3,000 in interest for a total of $23,000 per year. How much of this must Samantha include in her income? a. $0 b. $23,000 c. $3,000 d. $20,000

11. Patricia is 70 years old and lives with her son John and Johns wife, Debra. John and Debra both provide well over 50% of Patricias support for the tax year. Patricia earned $12,000 this year for retirement from her previous employer. Patricia is a citizen of the United States. Based on this information, Patricia is a qualifying relative and can be claimed as a dependent on John and Debras tax return. a. True b. False

12. Dr. Matt Johnson is a surgeon and grossed $550,000 for the tax year from his job. Dr. Johnson also had a long-term capital gain for the year of $20,000 from an investment he made several years ago. How much will Dr. Johnson have to pay in taxes on the long-term capital gain? a. $4,000 b. $7,920 c. $3,000

13. Charles, single, is a general manager of a retail store and had taxable income of $50,000. Approximately how much is Charles tax liability for the year? a. $7,046 b. $6,593 c. $8,356 d. $6,913

14. Jason has an extensive amount of information for his tax return. Jason has gross income from his full-time job but Jason also has the following; Rental income, extensive charitable contributions and medical expenses, income from a farm he owns, and a large amount of interest income from his bank. Which of the following is true about Jasons upcoming tax return? a. Jason will have to use Schedule A to report his rental income b. Jason will have to use Schedule C to report his charitable contributions and medical expenses c. Jason will have to use Schedule E to report his interest income d. Jason will have to use Schedule F to report his farm income

15. Which of the following does not qualify as an itemized deductions? a. Charity contributions b. Medical & dental expenses c. Mortgage interest d. Student loan interest

16. Superior Corporation has taxable income of $12,000,000 for the tax year. What is Superiors tax liability? a. $4,080,000 b. $4,000,000 c. $4,200,000 d. $4,100,000

17. For tax refund to be due, which of the following must have occurred? a. Tax payments must exceed tax liability b. Tax liability must exceed tax payments c. Tax credits must exceed tax deductions d. Tax deductions must exceed tax credits

18. Tim and Jane are married, filing jointly, and are both 50 years. They have 2 children; Junior who is 14 years old and Monica who is 20 years old but is not attending school full time. Both children live with them and Tim and Jane provide greater than 50% of their support. How much is the exemption amount for Tim and Janes tax return? a. $15,800 b. $11,850 c. $7,900 d. $0

19. Which of the following statements is true about the calculation of the tax formula? a. The starting point of the tax formula is gross income b. Standard/itemized deductions come before deductions for AGI c. Exemptions are deducted after the tax liability is calculated d. There is not distinct difference between AGI and taxable income

20. Which of the following is the highest tax rate taxpayers may have to pay based on their taxable income? a. 35% b. 39.6% c. 31.9