1.Which of the following is not a deduction for AGI on an individual taxpayer's tax return?

a.Alimony paid to a former spouse

b.Moving expenses

c.Charitable contributions

d.Interest paid on a student loan

e.All of the above are deductions for AGI

2.Which of the following can be deducted as an itemized deduction on an individual taxpayer's tax return?

a.Medical expenses

b.Casualty losses

c.Employee business expenses

d.None of the above can be deducted as an itemized deduction

e.All of the above can be deducted as an itemized deduction

3.Ann's husband died three years ago. Ann maintains a household where she and her 8-year-old daughter reside for the tax year. On her tax return, she properly claims her daughter as a dependent. For the current year, Ann should file her tax return as:

a.married taxpayer filing separately.

b.qualifying widow(er).

c.head of household.

d.single individual.

e.none of the above.

4.Carol is 20 years old and single. Her parents properly claim her as a dependent on their joint tax return. During 2017, Carol had the following income and expense items:

Wages from a part-time summer job$3,000

Interest income from her own savings account2,500

State and local income taxes paid800

State and local sales tax paid200

Carol's 2017 taxable income is:

a.$0.

b.$2,150.

c.$4,450.

d.$1,950.

e.$1,750.

5.Jim and Mary Blyfield file a joint return. During the year, they provided over 50% of the support for the following individuals, all of whom are U.S. citizens:

Jim's mother who had no gross income.

Mary's mother whose only income was $2,850 of social security benefits.

Jim's sister who had $4,200 of gross income. The sister is 27 years old and a full-time student.

Jim's cousin, who is single, fully disabled, and had no income. The cousin lived with the Blyfields for 10 months of the current year before moving to another state to live with Jims brother.

The Blyfields' daughter, age 20, who lived at home until she was married in December of the current year. The daughter had no gross income. However, she filed a joint return with her 26-year-old husband, who had wages of $32,000 for the year.

Based on the previous information, how many total personal and dependency exemptions can Mr. and Mrs. Blyfield claim on their joint return?

a.4

b.5

c.6

d.7

e.8

6.Frank celebrates his 65th birthday on January 1, 2018. Frank lives with his wife, Mary, who is 66 years of age. Neither Frank nor Mary is blind. On their joint tax return for 2017, Frank and Mary claim a standard deduction of:

a.$13,950.

b.$12,700.

c.$15,200.

d.$15,800.

e.$14,250.

7.The minimum percentage of support that a member of a multiple support group must provide to claim the supported person as a dependent is more than:

a.10%.

b.15%.

c.20%.

d.25%.

e.None of the above.

8.Ted and Sharon Miner (ages 66 and 63, respectively) file a joint tax return and claim the standard deduction. Sharon is legally blind; Ted's vision is perfect. The Miners fully support Arthur, their 45-year-old unmarried son. Arthur's gross income for the current year is $1,300. The amount that the Miners may claim as a standard deduction for 2017 is:

a.$12,700.

b.$13,950.

c.$15,200.

d.$14,250.

e.$15,800.

9.Dorsey and Thelma Packard (ages 42 and 45) file a joint return. They claim Dorsey's blind mother (age 67) as a dependent. The Packards' 2017 standard deduction is:

a.$13,950.

b.$12,700.

c.$14,250.

d.$15,200.

e.$15,800.

10.Arthur and Mary Mitchell (ages 64 and 52, respectively) file a joint tax return. Mary is legally blind. The Mitchells provided over half the support of their two unmarried children (Larry and Tammy) and Mary's mother (Alice Fisher). Larry, Tammy and Alice live with the Mitchells the entire year. Alice has no gross income. Larry (age 25) is a full-time university student with $4,400 of earned income. Tammy (age 21) is a part-time university student with $4,170 of earned income. The number of total personal and dependency exemptions Arthur and Mary Mitchell can claim on their 2017 joint tax return is:

a.2.

b.3.

c.4.

d.5.

e.6.

11.The maximum adoption credit for 2017 is:

a.$2,400.

b.$5,000.

c.$6,000.

d.$9,350.

e.$13,570.

12.The IRS presents the tax rates to individual taxpayers in the form of Tax Rate Schedules and a Tax Table. Taxpayers who use the Tax Table to compute their tax will find that for an equal amount of taxable income their tax will always:

a.equal the tax determined from using the Tax Rate Schedule for the proper filing status.

b.be larger than the tax determined from using the Tax Rate Schedule for the proper filing status.

c.be smaller than the tax determined from using the Tax Rate Schedule for the proper filing status.

d.equal or be within a few dollars of the tax determined from using the Tax Rate Schedule for the proper filing status.

e.always be different from the tax determined using the Tax Rate Schedule for the proper filing status.

13.Education tax credits are reported on:

a.Form 8839.

b.Form 8863.

c.Form 2441.

d.Schedule 8812.

e.Form 2120.

14.The full child tax credit is available to a married couple who files a joint tax return and whose AGI does not exceed:

a.$55,000.

b.$110,000.

c.$75,000.

d.$150,000.

e.$125,000.

15.Which of the following types of gross income can be reported on Form 1040EZ?

a.wages, tips, taxable scholarships, dividends, and interest.

b.wages, tips, taxable scholarship, interest, and unemployment compensation.

c.wages, tips, annuities, pensions, and interest.

d.wages, pensions, and interest.

e.wages, pensions, social security benefits, and interest.

16.Taxpayers sending a check in payment of taxes should make the check payable to the:

a.IRS.

b.Internal Revenue Service.

c.United States Treasury.

d.either a. or c. above.

e.any of the above.

17.A 25-year-old files Form 1040EZ and indicates that another taxpayer can claim him as a dependent. This taxpayer may not:

a.claim the standard deduction.

b.claim the earned income credit.

c.claim an exemption deduction for him or herself.

d.both b. and c. above.

e.all of the above.

18.Clark, a 12-year-old child, lives with his parents. During the current year, Clark earned $2,400 delivering newspapers. This was his only income. Clark's parents file a joint return and claim Clark as a dependent. Considering this information, which of the following statements is correct?

a.The parents must report Clark's income on their tax return.

b.Clark must use his parents' tax rate to compute his tax liability.

c.Clark's taxable income is $1,350.

d.Clark's taxable income is $0.

e.None of the above.

19.Choose the statement that applies to Andy, a 14-year-old child, who earned $2,200 mowing lawns during the summer. Andy also had interest income of $400.

a.Andy's parents must include the $400 of interest income on their tax return.

b.The $400 of unearned income is taxed at his parents' tax rate.

c.Andy must file his own return.

d.Form 8615 is used to compute Andy's income tax.

e.All of the above.

20.Rhonda is single and receives the following income during the year: $30,000 taxable pension, $6,000 in social security payments, and $1,000 of interest on State of Iowa bonds. What is Rhonda's adjusted gross income based on the above information?

a.$36,000

b.$34,500

c.$33,000

d.$30,000

e.None of the above

21.Brian, a calendar-year taxpayer, purchased an annuity contract which started paying him $54 each month on June 1 of the current year. The annuity cost him $2,400, and it has an expected return of $7,200. How much of this annuity is includable in gross income for the current year?

a.$0

b.$378

c.$126

d.$252

e.None of the above

22.On July 1, 2016, a dance studio received $3,600 for 72 dance lessons to be given over the next 3 years. Thirty lessons were given in both 2016 and 2017. The remaining 12 lessons were given in 2018. The studio (which uses the accrual method) includes what amount in gross income in 2017?

a.$1,800

b.$2,100

c.$0

d.$1,500

e.$1,200

23.To be considered alimony, the payments must meet certain conditions. Which of the following is not one of the conditions?

a.Payments must stop when the recipient dies

b.Payments are not for child support

c.The two parties may not live in the same household

d.Payments may be in cash or property

e.None of the above

24.A 10-year-old who lives with her parents has $5,300 in interest income for 2017. The child's net unearned income is:

a.$0.

b.$4,250.

c.$5,300.

d.$1,400.

e.$3,200.

25.On July 1, 2017, Sam loaned his son $150,000 to purchase a new house. The loan is for ten years with no interest. The son has no investment income. If the applicable federal rate (AFR) is 10%, what amount of imputed interest will Sam report in gross income in 2017?

a.$0

b.$15,000

c.$7,500

d.$2,500

e.None of the above