me resulted in a $6,000 separation from Bill, Karen filed Form 8857 - Request for Innocent Spouse Relief to request separation of liability relief. The IRS proved that Karen actually knew about the $20,000 of additional income at the time she signed the joint return. Bill is liable for all of the understated tax, Interest, and penalties because all of it was due to his unreported income. Which of the following is true regarding Karen's liability for the understated tax, interest and penalties due for the unreported income of $20,000? A Karen is not liable for the understated tax, Interest, and penalties due to the $20.000 of unreported income B. The IRS cannot collect the entire $6,000 plus interest and penalties from Karen because she is not individually liable for it C. The IRS can collect the entire $6,000 plus interest and penalties from either Karen or Bill because they are jointly and individually liable for it D. Even though Karen knew that Bill received the income, relief is available for that income because she did not know it was taxable 35. Jeff and Riley were married for 12 years when Riley died in July of 2021. The couple have two children who are 6 and 10 years old. Which of the following applies to Jeff regarding filing status? A. Jeff can file using any status he wants for the next 3 years B. Since Jeff's spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2022 and 2023 C. Since Jeff's spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2021 only D. Since Jeff's spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2022 only 36. If the taxpayer is a married nonresident alien, but his or her spouse is not a U.S. citizen or residents, the taxpayer must use the Tax Table column or the Tax Rate Schedule for which filing status when determining the tax on income effectively connected with a U.S. trade or business? A. Married, filing separately B. Head of household C. Married, filing jointly D. Single 37. Mr. Green died on January 4 before filing his tax return. On April 3 of the same year, Leah Marshall was appointed by the court as the personal representative for Mr. Green's estate and he files Form 1040 for Mr. Green. In order to claim a refund for Mr. Green's estate all of the following are true except: A Leah does not need to file Form 1310 to claim the refund on Mr. Green's tax return B. Leah must attach to Mr. Green's return a copy of the court certificate showing her appointment C. Leah must e-file Form 1310 with Mr. Green's Form 1040 D. Leah may also need to file taxes owed by the estate rather than the individual Lesson 4 38. Alan, 46, and Donna, 33, are filing a joint return for 2021. Neither is blind, and neither can be claimed as a dependent. They decide not to itemize their deductions. What is their standard deduction? A $0 B. $12,550 C. $18.800 D. $25,100 39. For tax year 2021, which of the following is correct regarding the standard deduction? A. The standard deduction for single taxpayers rises to $10,000 B. The standard deduction for married taxpayers rises to $12,550 C. The standard deduction for heads of household rises to $18,800 D. The standard deduction for surviving spouses rises to $12,550 C
