QUESTION 10

Margaret, age 65, and John, age 62, are married with a 23 year old daughter who lives in their home. They provide over half of their daughter's support, and their daughter earned $4,000 this year from a par-time job. Their daughter is not a full-time student. How many exemptions should Margaret and John claim on a joint return for 2014?

	A.	6
	B.	5
	C.	4
	D.	2
	E.	3

5 points

QUESTION 11

Partnership income is reported on

	A.	Form 1065.
	B.	Form 1120.
	C.	Form 1040.
	D.	Form 1040X.

QUESTION 12

Ramon, a single taxpayer with no dependents, has adjusted gross income of $98,000 and itemized deductions total $19,000. What taxable income will Ramone show?

	A.	$81,650
	B.	$75,100
	C.	$85,600
	D.	$75,050
	E.	$79,000

QUESTION 14

Taxpayers who are 65 or older get the benefit of:

	A.	None of the above
	B.	An additional amount added to their standard deduction
	C.	An additional exemption
	D.	An additional amount added to their itemized deductions

5 points

QUESTION 15

Taxpayers who are blind get the benefit of:

	A.	An additional amount added to their itemized deductions
	B.	An additional exemption
	C.	An additional amount added to their standard deduction
	D.	None of the above

5 points

QUESTION 16

The 3.8 percent Medicare tax on net investment income applies to:

	A.	Wages
	B.	IRA distributions
	C.	Interest and dividends
	D.	Tax-exempt interest income

5 points

QUESTION 17

The current income tax system was:

	A.	Not designed with social objectives in mind.
	B.	None of the above.
	C.	Authorized by the Sixteenth Amendment ot the Constitution in 1913.
	D.	Designed solely to raise money to run the government.
	E.	Authorized by the founding fathers when the government was formed.

5 points

QUESTION 18

The top ATRA tax rate for long-term capital gains was increased to ____ percent, and the ACA added a net investment income Medicare surtax for high-income taxpayers of ___ percent, for a maximum long-term capital gain tax rate of ____ percent in 2013. Fill in the blanks.

	A.	20; 3.8; 23.8
	B.	20; 0.9; 20.9
	C.	25; 3.8; 28.8
	D.	39.6; 0.9; 40.5

5 points

QUESTION 19

Which of the following is a deduction for adjusted gross income?

	A.	Student loan interest
	B.	Personal casualty losses
	C.	Charitable contributions.
	D.	Medical expenses
	E.	None of the above

5 points

QUESTION 20

Which of the following is not a capital asset to an individual taxpayer?

	A.	A 48-foot sailboat
	B.	All of the above are capital assets
	C.	Raw land held as an investment
	D.	Inventory in the taxpayer's business
	E.	Stocks