1.Who can claim Chris' personal or dependency exemption?

a.Chris can claim his personal exemption because he had earned income. b.Chris can claim his personal exemption if Darcy does not to claim him. c.Chris does not have a filing requirement so he cannot claim a personal exemption.

d.Chris must file a tax return and claim zero personal exemptions because Darcy can claim him as a dependent on her tax return.

1.Chris can claim his own personal exemption if his mother decides not to claim him as a dependent.

a.True b.False

2. Darcy can claim the expenses Chris paid as qualifying expenses for the American opportunity credit if Darcy claims Chris as a dependent on her return.

a.True b.False

2.If Darcy claims Chris as a dependent on her return, Darcy cannot claim the American opportunity credit because Chris paid his own tuition.

a.True b.False

2: Mike Hastings

3.Who can claim Hayden as a dependent?

a.No one can claim Hayden because he was not a member of the household for more than six months. b.Mike cannot claim Hayden because Hayden is not Mike's child. c.Brittany can claim Hayden because she is his parent. d.Mike can claim Hayden; Brittany cannot claim Hayden because Brittany qualifies as Mike's dependent.

3.Can Brittany claim Hayden as a dependent?

a.No, because Hayden didn't live with Brittany for more than 6 months. b.No, because Brittany qualifies as Mike's dependent. c.Yes, because Brittany had earned income.

d.Yes, because Brittany is Hayden's mother.

4.Who can Mike claim as a qualifying child(ren) for the earned income credit?

a.Mike has no qualifying children. b.Mike can claim Brittany, but not Hayden. c.Mike can claim Hayden, but not Brittany.

d.Mike can claim both Brittany and Hayden.

4.How many qualifying children does Mike have for the earned income credit?

a.0 b.1 c.2

5.Mike's most advantageous filing status is Single.

a.True b.False

5.Mike's most advantageous filing status is Head of Household. a.True b.False

3: Henry and Claudia Oberlin

6.Are Henry and Claudia eligible to claim the earned income credit?

a.No, because Henry and Claudia's income is too high. b.No, because they all have ITINs. c.Yes, because Alyssa is their qualifying child for EIC. d.Yes, but only if they file a joint return.

6.Henry and Claudia are eligible to claim the earned income credit.

a.True b.False

7.Henry and Claudia can claim Alyssa for which tax benefit(s)?

a.Dependency exemption and the child tax credit. b.Dependency exemption only. c.Child tax credit only.

d.Neither dependency exemption nor child tax credit.

7.Henry and Claudia can claim Alyssa as a dependent, but not for the child tax credit.

a.True b.False

4: Martin Huron

8.What is Martin's most advantageous allowable filing status?

a.Married Filing Separately. b.Head of Household. c.Single.

d.Qualifying Widower.

8.Martin's most advantageous allowable filing status is Single.

a.True b.False

9.Considering Martin's filing status and using Publication 4012, Tab J, Education Benefits, which education benefit is Martin eligible to claim?

a.American opportunity credit. b.He does not qualify for any education benefit. c.Lifetime learning credit. d.Tuition and fees deduction.

9.Considering Martin's filing status and using Publication 4012, Tab J, Education Credits, Martin is eligible to claim the lifetime learning credit.

a.True b.False

5: Samantha Rollins

10.Which allowable filing status is most advantageous to Samantha?

a.Qualifying Widow. b.Single. c.Married Filing Separately. d.Head of Household.

10. Head of Household is the most advantageous allowable filing status Samantha can use.

a.True b.False

11.Howard is Samantha's qualifying person for which of the following benefits?

a.Dependency exemption. b.Child tax credit. c.Earned income credit. d.All of the above.

11.How many qualifying persons does Samantha have for the earned income credit?

a.0 b.1 c.2 d.3

12.What is the credit for child and dependent care expenses shown in the tax and credits section of Samantha's tax return?

a.$840 b.$882 c.$630 d.$600

12.What is the credit for child and dependent care expenses in the tax and credits section of Samantha's Form 1040? $________.

13.What is the total amount of qualified educational expenses used in the calculation of Samantha's American opportunity credit? $__________.

13. The total amount of qualified educational expenses used in the calculation of Samantha's 2017 American opportunity credit is:

a.$3,300 b.$3,800 c.$4,000 d.$4,240

14.What is the amount of self-employment tax in the Other Taxes section of Samantha's Form 1040, page 2?

a.$0 b.$74 c.$148 d.$161

14.What is the amount of Samantha's self-employment tax in the Other Taxes section of Form 1040, page 2? $________.

15. Samantha's unemployment income does not need to be reported on her tax return.

b.False

15.Where is Samantha's unemployment income reported?

a.Form 1040, Line 19.

b.Form 1040, Line 7. c.Unemployment income does not need to be reported. d. Form 1040, Line 21.

16.Where is the cancelled debt from Form 1099-C reported on Samantha's tax return?

a.It is not reported on the return. b.On Form 1040, line 7 as wages. c.On Form 1040, line 21 as other income. d.On Schedule A as a miscellaneous deduction.

16.Samantha's cancelled debt from Form 1099-C must be included on her federal income tax return, Line 21, as other income.

a.True b.False

17.Samantha qualifies for an exception to the 10% additional tax on the early distribution from her IRA.

a.True b.False

17.Which exception can Samantha use to avoid the 10% additional tax on the early distribution from her IRA on Form 5329?

a.She does not qualify for an exception. b.Distribution made for higher education expenses. c.Distribution made for purchase of a first home. d.Distribution due to total and permanent disability

6: Quincy and Marian Pike

18.What is the total taxable interest income shown on Line 8a of Form 1040?

a.$80 b.$110 c.$150 d.$260

18.The total amount of taxable interest income shown on Line 8a is $260.

a.True b.False

19.How does the code Q on Quincy's Form 1099-R from Essex Bank affect the return?

a.The entire distribution is not taxable. b.Half of the distribution is taxable. c.The entire distribution is taxable. d.There is no such code. The taxpayer must get a corrected Form 1099-R from the bank.

19.Quincy's entire $4,500 Roth IRA distribution is taxable.

a.True b.False

20.What is the amount shown on Form 1040, Line 13 - Capital gain or loss?

a.$1,916 b.$2,451 c.$2,366 d.$2,001

20.The net capital gain or loss reported on Form 1040, Line 13 is a gain of $2,366.

a.True b.False

21.How much of the $17,500 gross distribution reported on Form 1099-R is taxable in 2017? $ ________.

21.How much of the $17,500 gross distribution reported on Form 1099-R from Hickory Corporation is taxable in 2017?

a.$17,500 b.$17,137 c.$17,067 d.$16,797

22.Is Quincy's Social Security income taxable?

a.Yes, a portion of the Social Security income is taxable.

b.Yes, all of the Social Security income is taxable. c.No, because their total income is less than $32,000. d.No, Social Security benefits are never taxable.

22.A portion of Quincy's Social Security income is taxable.

a.True b.False

23. Are the Pikes entitled to claim an earned income credit for 2017?

a.No, because their investment income exceeds the amount allowed to claim. b.No, Quincy is over the age of 65. c.No, Lucas is not a qualifying child for purposes of the EIC. d.Yes, they are eligible for the credit.

23.The Pikes are entitled to an earned income credit for 2017.

a.True b.False

24.What is the total income tax withholding on the tax return? $_________.

24.The total withholding on the tax return is $2,200.

a.True b.False

7: Austin Drake

25.What income must Austin report for his business on Schedule C-EZ or C?

a.Income reported on Form 1099-MISC for classes he taught at the gym. b.Cash income in payments from individual clients. c.None. He must report all income from his personal training business on Line 21, Other income.

d.Both his income reported on the Form 1099-MISC and the cash income from his clients.

25.Austin must report the income on Form 1099-MISC and the cash income from his clients on Form 1040, Line 21, Other income.

a.True b.False

26.What is Austin's mileage expense deduction (at the standard mileage rate) for his business as a personal trainer?

a.$1,525 b.$2,220 c.$3,531 d.$4,227

26.What is Austin's mileage expense deduction (at the standard mileage rate) for his business as a personal trainer? $______.

27.Which item(s) cannot be deducted by Austin as a business expense? (Select all that apply.)

a.Business license. b.Business liability insurance. c.Advertising. d.Nutritional supplements.

27.Austin cannot deduct the amount he pays for nutritional supplements.

a.True b.False

28.How does Austin's self-employment tax affect his tax return?

a.Austin's self-employment tax is not reported anywhere on Form 1040. b.A portion of the self-employment tax is deducted as a business expense on Schedule C-EZ or C.

c.The self-employment tax is shown on Form 1040, Other Taxes section, and the full amount is deducted on Schedule A, Taxes You Paid section. d.The self-employment tax is shown on Form 1040, Other Taxes section, and the deductible part is an adjustment on Form 1040, page 1.

28.The full amount of the self-employment tax is deducted on Schedule A, in the Taxes You Paid section.

a.True b.False

29. What is the amount Austin can take as a student loan interest deduction? $_______.

29.Austin can take a student loan interest deduction of $2,650.

a.True b.False

30.What are Austin's total itemized deductions on Schedule A, line 29?

a.$6,856 b.$8,056 c.$8,156 d.$8,436

30.What is Austin's total itemized deductions on Schedule A, line 29? $______.

31.The amount of Austin's retirement savings contributions credit in the Tax and Credits section of Form 1040 is $120.

a.True b.False

31.What is the amount of Austin's retirement savings contributions credit? $______.

32.Austin is not able to pay the entire balance due by the due date of the return (without extensions). What are his options?

a.He can submit a Form 9465, Installment Agreement Request. b.He can contact the IRS for a full pay 120-day agreement. c.He can pay using his credit card. d.Any of the above.

32.Austin wants to pay his balance due with his credit card. Can he do that?

a.Yes b.No

8: Robert Wharton

33.What form must be used to split Robert's refund?

a. Form 8888

33.Robert must use Form 8888 to split his refund between his two bank accounts.

a.True b.False

34.Which health coverage exemption does Robert quality for?

a.Short Coverage Gap. b.Income below the filing threshold.

c.Not lawfully present in the U.S.and not a U.S.citizen.

d.None, Robert doesn't qualify for an exemption.

34. Robert does not qualify for a coverage exemption, and will need to make a shared responsibility payment (SRP) when filing his tax return.

a.True b.False

35.Refer to Publication 4012, Tab H. Which of the following qualify as minimum essential coverage?

a.Medicare Advantage plans. b.COBRA coverage c.Employer-sponsored coverage under a group health plan. d.All of the above. e.A and C only.

35.Refer to Publication 4012, Tab H. Which of the following coverages do not qualify as minimum essential coverage? a.Medicare Advantage plans. b.COBRA coverage. c.Dental insurance. d.Employer-sponsored coverage under a group health plan.