Kyle, whose wife died in December 2015, filed a joint tax return for 2015. He did not remarry, but has continued to maintain his home in which his two dependent children live. What is Kyle's filing status as to 2019? O A. Married filing jointly B. Head of household C. Surviving spouse/Qualified widow D. Single E. Married filing separately Reset Selection Irene's husband passed away this year. After his death, Irene received $250,000 of proceeds from life insurance on her husband, and she inherited her husband's stock portfolio worth $750,000. What amount must Irene include in her gross income? O A. $1 Million B. $750,000 OC. $500,000 D. $250,000 E. $0 This year Bill received a $900 refund of state income taxes that he paid last year. Last year Bill claimed itemized deductions of $10,000 including $2,800 of state income taxes. How much of the refund, if any, must Bill include in gross income if the standard deduction last year was $9,550? A. $0 B. $450 C. $650 D. $900 E. $2,800 Sullivan's wife Susan died four years ago. Sullivan has not remarried and he maintains a home for his dependent child Sammy. In 2019, Sullivan received $70,000 of salary from his employer and he has $6,000 of itemized deductions. What is Sullivan's taxable income for 2019? A. $51,650 B. $55,550 C. $56,650 D. $59,950 E. $60,650 Which of the following tax will not be qualify as an itemized deduction? A. Real estate taxes on a residence B. Personal property taxes assessed on the value of specific property C. Social security tax paid D. State and local income taxes The 2019 standard deduction for a married taxpayer, age 68, who files as married filing separate return, is: O A. $12,200 B. $13,500 OC. $13,850 D. $24,400 O E. $25,400 Which of the following statement is true? A. Tax credits reduces a taxpayer's taxable income dollar for dollar. B. To qualify for the earned income credit, the taxpayer must have a qualified dependent. C. The American opportunity credit is available only for those students who are in their first or second year of post- secondary education. OD. The child tax credit is subject to phase-out based on the taxpayer's AGI. Reset Selection Which of the following items is a deduction from adjusted gross income? A. Alimony payments B. Child-support payments OC. Federal gift tax OD. Unreimbursed qualified medical expenses O E. Traditional IRA contribution Which of the following statements regarding the child tax credit is true? O A. The credit is subject to phase-out based on the taxpayer's AGI. OB. The full credit for a child who qualifies is $1,000. OC. The child for whom the credit is claimed must be under the age of 15 at the end of the year. OD. The child for whom the credit is claimed must meet the same definition of qualifying child for dependency status. Reset Selection Erin had the following capital gains (losses) from the sale of her investments: $2,000 Long Term Capital Gain, $25,000 Short Term Capital Gain, ($9,000) Long Term Capital Loss, and ($15,000) Short Term Capital Loss. What is the amount and nature of Erin's capital gains and losses? OA. $4,000 net long-term capital loss B. $4,000 net short-term capital gain OC. $3,000 net long-term capital loss D. $3,000 net short-term capital gain Which of the following tax credits is fully refundable? O A. Dependent care credit B. Earned income credit C. Lifetime learning credit D. American opportunity credit Riley operates a plumbing business and this year the 3-year old van he used in the business was totally destroyed in a traffic accident. The van was originally purchased for $20,000 and the adjusted basis was $5,800 at the time of the accident. Although the van was worth $6,000 at the time of accident, insurance only paid Riley $1,200 for the loss. What is the amount of Riley's casualty loss deduction? A. $4,600 B. $5,300 C. $5,800 D. $6,000 O E. $14,000 George is single and age 56, has AGI of $265,000, and incurs the following expenditures in 2018. Medical expenses (before 7.5%-of-AGI floor) $27,000 Interest on home mortgage 15,500 State income tax 7,500 State sales tax 4,500 Real estate tax 8,600 Charitable contribution 6,500 What is the amount of itemized deductions George may claim? A. $39,125 B. $43,625 C. $45,225 D. $49,725 Matt and Jill are married. This year Matt earned $74,000 and Jill earned $80,000 and they received $6,000 interest income from joint saving account. How much taxable income would Matt report if he files married-filing-separate (they live in a community property law state)? A. $56,000 B. $65,000 OC. $68,000 OD. $77,000 O E. $80,000
