Question1

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An individual can choose to file as Married Filing Separately if:

Select one:

a.They are divorced as evidenced by a final divorce decree dated no later than September 30 of the tax year

b.They are considered married on the last day of the tax year because they meet one of the tests for being considered married

c.Their spouse died during the previous tax year

d.They lived apart from their boyfriend for at least the last 6 months of the tax year

Question2

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Bob Jonas is a single parent who has been divorced for two years and who provides a home for his 10-year old dependent son. What filing status should Bob use?

Select one:

a.Married Filing Separate

b.Head of Household

c.Single

d.Qualifying Widow(er)

Question3

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Ms. Sue Smith's husband passed away on March 6, of the previous tax year and Ms. Smith has not remarried. She maintains a home for herself and her 15-year old son. Ms. Smith provided over half of her son's support and he lived with her all year. What filing status should Ms. Smith use when filing her tax return for the tax year that her husband passed away?

Select one:

a.Qualifying Widow(er)

b.Single

c.Married Filing Joint

d.Head of Household

Question4

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IRS Form 1040EZwas replaced by:

Select one:

a.Form 1040A

b.Schedule 1

c.Form 1040

d.Form 1040EZ will not be replaced.

Question5

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Form 1040X is used to:

Select one:

a.Amend a U.S. Individual Income Tax Return.

b.Request an extension to file a U.S. Individual Income Tax Return.

c.Report Self-Employment Income.

d.Report Income When the Taxpayer Does Not Have a Social Security Number.

Question6

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Which of the following organizations/entities will qualify as a charitable organization so that contributions can qualify as charitable giving?

Select one:

a.A religious Temple

b.A nonprofit cemetery company

c.A nonprofit organization for the prevention of cruelty to animals

d.All of the above may qualify

e.None of the above qualify

Question7

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The Age Test for a child to qualify as a dependentvaries depending upon the tax benefit involved. In general, a child must be under theage of___ (or under age 24 in the case of a full-time student) in order to be a qualifying child.

Select one:

a.17

b.16

c.18

d.19

Question8

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Tip income is reported onForm 1040as:

Select one:

a.Wages

b.Self-Employment Income

c.Not reported on Form 1040

d.None of the Above

Question9

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Generally, interest earned on obligations (typically municipal bonds) used to finance government operations, is not taxable by the federal government if the obligations are issued by

Select one:

a.The State that the taxpayer is a resident of

b.Puerto Rico

c.The U.S. Treasury

d.All of the above

Question10

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Schedule B,Interest and Ordinary Dividends, is filed by taxpayers that have earned over $1,500in interest and ordinary dividends over the course of the tax year.Which of the following situations will also require a taxpayer to complete fileSchedule B?

Select one:

a.The taxpayer received interest from a seller-financed mortgage and the buyer used the property as a personal residence

b.The taxpayer has accrued interest from a bond

c.The taxpayer received interest or ordinary dividends as a nominee

d.All of the above

Question11

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Features of the Roth IRA include:

Select one:

a.Qualified distributions are tax free

b.Income taxes are paid up front

c.Principal grows tax free

d.All of the above

Question12

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An individual may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is calledre-characterizingthe contribution. To re-characterize a contribution one generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a ___________ transfer.

Select one:

a.Rollover

b.Trustee to trustee transfer

c.Wire transfer

d.All of the above

Question13

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If a taxpayerreceives aForm 1099-INTthat includes interest received as a _________ (that is, in their name, but the interest actually belongs to someone else), report the total on line 1 ofSchedule B.Do that even if you later distributed some or all of this income to others.

Select one:

a.Distributee

b.Nominee

c.Trustor

d.Trustee

Question14

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Most individual taxpayers use the cash method to report income. Interest income is generally reported in the year that it is actually or _________ received, and it does not matter if they do not yet have physical possession of it.

Select one:

a.Developmentally

b.Constructively

c.Alternately

d.Generally

Question15

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A taxpayer can file up to _______Form 1040tax returns per tax year.

Select one:

a.One

b.Five

c.Two

d.Unlimited

Question16

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In most cases, because of the Residency Test, a child of divorced or separated parents is the qualifying child of the custodial parent for purposes of determining dependency.However the child will be treated as the qualifying child of the noncustodial parent if certainconditions are met and the following occurs (when the decree or agreement went into effect after 1984):

Select one:

a.The custodial parent signs a written declaration that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return

b.The custodial parent enters into a verbal agreement with the noncustodial parent allowing the noncustodial parent to claim the child as a dependent for the year

c.The noncustodial parent can prove that he/she has provided over half the support for the child and files a written declaration with his/her tax return stating this fact

d.The noncustodial parent files his or her tax return first and files a decree with the tax return stating that the "tie-breaker" rule applies to the situation

Question17

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An individual cannot claim a person as a dependent unless that person is their ______ ______ or ______ ________ and meets the tests established for each.

Select one:

a.Qualifying Child / Qualifying Parent

b.Qualifying Relative / Qualifying Dependent

c.Qualifying Dependent / Qualifying Relative

d.Qualifying Child / Qualifying Relative

Question18

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To identify the child care provider on a tax return, they taxpayer must give the provider's

Select one:

a.Name

b.Address

c.Taxpayer Identification Number

d.All of the above must be provided

Question19

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Which of the following will affect the standard deduction amount that a taxpayer is eligible for?

Select one:

a.Filing status

b.Whether or not a deduction can be claimed for someone by another taxpayer.

c.Age

d.None of the above has an effect on standard deduction

e.Answers A and C

Question20

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Which test(s) must be met for a taxpayer to deduct any tax?

Select one:

a.The tax must be imposed on an individual

b.An individual must pay the tax during the tax year

c.The tax must be significant

d.A and B are correct

e.All of the above

Question21

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For how many years, after being eligible to file a joint return with your deceased spouse, may a person use the Qualifying Widow(er)filing status?

Select one:

a.Three Years

b.Two Years

c.Four Years

d.Seven years

Question22

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Even taxpayers that would not normally need to file a tax return, should file one when the following is true?

Select one:

a.If the taxpayer is owed a refund from taxes paid

b.If a taxpayer is eligible for a refundable credit

c.If a taxpayer needs to only make a tax payment

d.If self-employment income exceeds $200.00

e.Only A and B above should file a tax return

Question23

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Which dependent relative does not have to live in the same household for the taxpayer to claim Head of Household filing status?

Select one:

a.Cousin

b.Aunt

c.Brother

d.Father

Question24

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Which form(s) can be used to file an initial personal income tax return or amend an existing personal income tax return with the IRS?

Select one:

a.1040 or 1040X

b.1041, 990

c.1041

d.991, 990, 1120

Question25

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Generally, which of the following items should be included as taxable wages on Form 1040?

Select one:

a.Severance pay and payments for the cancellation of employment

b.Vacation pay received from an employer

c.Disability pension received under a plan that is paid by the employer

d.All of the above are taxable