1.	Which one of the following is not considered a self-employed person?

A. A sole proprietor. B. A partner. C. The president of a corporation solely owned by him.

2.	Which one of the following is a condition that requires the filing of Form 1040?

A. The taxpayer receives Social Security. B. The taxpayer itemizes deductions. C. The taxpayer makes a contribution to an IRA.

3.	Which one of the following statements describes the time for filing the tax return?

A. The due date is extended to the next business day when it otherwise falls on a Saturday, Sunday, or holiday. B. The taxpayer may obtain an automatic two-month extension by filing a request with the IRS. C. The taxpayer may obtain an additional four-month extension if reasonable cause is shown.

4.	Which one of the following is considered income under the cash method of accounting?

A. Amounts that are properly accrued by the taxpayer. B. The amount of debt canceled by a creditor not as a gift. C. Amounts of wages earned but not paid.

5.	Which one of the following statements describes accounting methods?

A. Almost all individuals use the cash method of accounting. B. If an individual uses the cash method of accounting for wages and interest, that individual cannot use accrual accounting for a proprietorship reported on Schedule C. C. An individual who uses the cash method of accounting only reports amounts actually received.

6.	Which one of the following is considered being married for tax purposes?

A. Persons living apart and legally separated or divorced. B. Persons whose marriage is annulled. C. A person whose spouse died during the year.

7.	Which one of the following statements describes the consequences of using the filing status married filing jointly?

A. A spouse may not be held responsible for tax if that spouse had no income. B. The tax rates are generally more favorable than that of two single individuals, if one has high income and the other has low income. C. If it is elected on an original return, it may be changed on an amended return.

8.	Which one of the following statements concerning the head-of-household filing status is CORRECT?

A. The taxpayer cannot be legally married. B. The taxpayer must generally have had a qualifying person live with him or her during the majority of the year. C. The tax rates are generally more favorable than for married persons filing jointly.

9.	Which one of the following statements concerning the qualifying widow(er) filing status is CORRECT?

A. The taxpayer may use the status until he or she has no minor children living at home. B. The rates are the same as for head of household. C. The taxpayer must be able to claim an exemption for a child, even if they do not claim the exemption.

10.	Which one of the following statements describes the standard deduction?

A. The standard deduction applicable to the year depends on the taxpayers filing status. B. The standard deduction is available only to taxpayers who itemize deductions. C. The standard deduction is not indexed for inflation.

11.

In 2018, John earned $50,000 working as an employee, and won $5,000 in a state lottery. Also in 2018, John spent $400 for the purchase of lottery tickets. John elected the standard deduction on his 2018 income tax return. The amount of lottery winnings that should be included in Johns 2018 taxable income is:

A. $0. B. $4,600. C. $5,000.

12.	The standard deduction for married taxpayers filing jointly in 2018 is:

A. $24,000. B. $18,000. C. $12,000.

13.	Ben and Doris Jones are married and filed a joint 2018 return. Ben is 72 and blind. Doris is 70 and has normal vision. How many personal credits may they claim on their 2018 return?

A. Four. B. Two. C. None.

14.	Which one of the following statements describes the limitations applicable to the calculation of individual income taxes?

A. Personal exemptions are $0. B. The standard deduction for an individual who may be claimed as a dependent by another taxpayer is the same as that of an individual who may not be so claimed. C. The standard deduction may be reduced at certain levels of AGI.

15.	Which one of the following is a required test for determining the status of a person as a qualifying relative dependent?

A. The gross income test. B. The passive-income test. C. The blood-line DNA test.

16.	Which of the following is CORRECT regarding a taxpayer claiming the credit for Other Dependents?

A. The dependent must be a qualifying child. B. The dependent must be a qualifying relative. C. The credit is $500 each for the taxpayer and the spouse.

17.

In 2018, Sam Dann provided more than half the support for his wife, his fathers brother, and his second cousin. Sams wife was the only relative who was a member of Sams household. None of the relatives had any income, nor did any of them file an individual or a joint return. All of these relatives are U.S. citizens. Which of these relatives qualify for a credit as an Other Dependent or dependents on Sams 2018 return?

A. Only his wife. B. His fathers brother. C. His wife and his cousin.

18.

On Monica Lus 2018 income tax return, Monica validly claimed her dependent 17-year-old son, Brett. Since Brett earned $5,000 in 2018 selling novelties at the college he attended full time, Brett was also required to file a 2018 income tax return. How much should Brett claim as a standard deduction on his 2018 individual income tax return?

A. $0. B. $5,350. C. $6,350.

19.	Which one of the following statements concerning fringe benefits is CORRECT?

A. The value of fringe benefits is not included in gross income. B. The employer always determines the amount of the employees fringe benefits and includes this amount in Box 1 of Form W-2. C. The value of fringe benefits must be included in income unless the benefits are specifically excluded by law or the employee pays fair market value for them.

20.	Which one of the following statements describes interest payments made to the taxpayer?

A. Generally, such payments are reported to the taxpayer on Form 1099-INT. B. Federal income tax is not withheld on any interest payments. C. No interest is reportable unless the taxpayer actually receives it.

21.	Taxable interest received by the taxpayer is reported on which of the following forms?

A. Form 1040 (second page) and Schedule A. B. Form 1040 (second page) and Schedule B. C. Form 1040 (second page) and Schedule D.

22.	Which one of the following statements describes dividends?

A. Dividends on insurance policies are generally taxable. B. Exempt-interest dividends received from a mutual fund are included in gross income, but at a favorable tax rate. C. Nontaxable dividends reduce the basis in the insurance contract, stock, or mutual fund.

23.	In 2018, Ben Lane and his wife, Ann, received dividends of $500 and $25, respectively, from taxable domestic corporations. What amount of these dividends could be excluded from the Lanes taxable income on their 2018 joint return?

A. $0. B. $275. C. $525.

24.	Which one of the following statements describes dividend reporting?

A. Dividends are generally reported to the taxpayer on Form 1099-DIV. B. All dividends are reported on Line 3b of Form 1040. C. Capital gains cannot be reported on Form 1099-DIV.

25.	Excluding net investment income tax, qualified dividend income received by a taxpayer in the highest tax bracket on March 31, 2018, is taxed at a maximum tax rate of:

A. 15 percent. B. 20 percent. C. 39.6 percent.