Question 26 of 70.

Daniel and Joseph were married on October 15, 2021. They wish to file only one return. What is Daniel's and Joseph's correct and most favorable 2021 filing status?

Head of household.

Married filing jointly.

Married filing separately.

Single.

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Question 27 of 70.

Tyler and Griselda were divorced on November 2, 2021. Neither had dependents they could claim for 2021. What is Tyler's and Griselda's correct and most favorable 2021 filing status?

Head of household.

Married filing jointly.

Married filing separately.

Single.

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Question 28 of 70.

Rudolf and Marta are married and lived in a community property state the entire year. Rudolf earned $20,000 in wages, and Marta earned $30,000. If Rudolf and Marta file separate returns, how much income would each report?

Rudolf: $20,000; Marta: $30,000.

Rudolf: $25,000; Marta: $25,000.

Rudolf: $30,000; Marta: $20,000.

Rudolf: $50,000; Marta: $0.

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Question 29 of 70.

Edward (55) and Lorraine (50) will file married filing jointly. Neither is blind. What will be the amount of their standard deduction?

$12,550

$18,800

$25,100

$27,800

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Question 30 of 70.

Allen and Charlotte married in 2021. They filed a joint return for the year, but the IRS offset their refund because Allen owes past-due child support for his two children from a previous marriage. Charlotte is not legally responsible for the children's support, and she would like to receive her portion of their tax refund. As the couple's tax preparer, what advice would you offer?

Allen should request a certificate of non-attachment.

Allen and Charlotte should submit a joint offer in compromise.

Charlotte should request relief as an injured spouse.

Charlotte should request relief as an innocent spouse.

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Question 31 of 70.

Marlow and Bailey are registered domestic partners. Neither had dependents they could claim for 2021. What is Marlow's and Bailey's correct and most favorable 2021 filing status?

Married filing jointly.

Married filing separately.

Single.

Qualifying widow(er).

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Question 32 of 70.

To seek innocent spouse relief, separation of liability relief, or equitable relief, which form should a taxpayer submit to the IRS?

Form 843, Claim for Refund and Request for Abatement.

Form 1065, Failure to Electronically File Penalty Abatement.

Form 8379, Injured Spouse Allocation.

Form 8857, Request for Innocent Spouse Relief.

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Question 33 of 70.

Sofia is age 18. She is a dependent of her parents. She had interest income of $100 and wages of $6,200. What is Sofia's 2021 federal standard deduction?

$1,100

$6,200

$6,550

$6,650

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Question 34 of 70.

Gwyneth (25) is unmarried and was a full-time student from January through June. Gwyneth worked part-time but did not provide more than 50% support for herself or her son, Saul (1). Gwyneth and Saul lived with Gwyneth's mother, Joan (49), the entire year. Gwyneth's earned income and AGI were $7,278. Her mother, Joan, has an AGI of $30,225 in 2021. Saul's income was $0. What is Gwyneth's correct and most favorable 2021 filing status?

Head of household.

Married filing jointly.

Married filing separately.

Single.

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Question 35 of 70.

Michael (65) and Anna (64) will file married filing jointly. Anna is blind. What will be the amount of their standard deduction on Form 1040-SR?

$25,100

$26,450

$26,800

$27,800

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Question 36 of 70.

William (42) and Wendy (39) Johnston are married and want to file together. Their sons, Evan (17) and Larry (16), who are both high school students and single, lived with them all year. They are all U.S. citizens and have social security numbers valid for employment. William's wages were $52,495, Wendy's wages were $39,900. Evan's gross income was $6,900; Larry's was $350. What is William's and Wendy's correct and most favorable 2021 filing status?

Head of household.

Married filing jointly.

Married filing separately.

Single.

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Question 37 of 70.

What is the due date to file a 2021 Form 1040 tax return or request an extension?

January 1, 2022

April 18, 2022

June 15, 2022

October 15, 2022

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Question 38 of 70.

Justin (45) is single. He is not blind. What is his standard deduction?

$12,400

$12,550

$18,800

$25,100

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Question 39 of 70.

What are the three factors needed to determine the filing requirement for nondependents?

Dependent taxpayer test, joint return test, and citizen test.

Filing status, age, and income.

Marital status, filing status, and income.

Unearned income, earned income, and gross income.

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Question 40 of 70.

Jackson (30) is married and lived apart from his wife, Carol (28), the entire year. They have no decree of divorce or separate maintenance. Carol does not want to file a joint return with Jackson. Bill (6), their son, lived with Carol the entire year. Carol has waived her right to Bill's exemption for 2021 by signing Form 8332. Jackson and Carol both provided 50% of Bill's support. Jackson's wages were $37,000; Carol's were $39,000; Bill's gross income was $0. Jackson's taxable income was $22,600. What is Jackson's correct and most favorable 2021 filing status?

Head of household.

Married filing jointly.

Married filing separately.

Single.

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Question 41 of 70.

Rob and Sue Weber are married, and both were nonresident aliens at the beginning of the year. In June, Rob became a resident alien and remained a resident for the rest of the year. Rob and Sue agree to report their total worldwide income for the entire year. They wish to file only one return.? What is Rob's and Sue's correct and most favorable 2021 filing status?

Head of household.

Married filing jointly.

Married filing separately.

Single.

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Question 42 of 70.

Paid preparers must sign any tax return with a claim for refund. They must also keep a completed copy of the return or claim for refund, or retain some type of record or list, which includes the taxpayer's name, identification number, and tax year. The record or list must be available for inspection if requested. How long must the record or list be retained and available for inspection?

For a three-year period following the close of the tax return period in which the claim for refund was requested.

For a four-year period following the close of the tax return period in which the claim for refund was requested.

For a ten-year period following the close of the tax return period in which the claim for refund was requested.

For a three-year period following the date the tax return was filed in which the claim for refund was requested.

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Question 43 of 70.

Which of the following taxpayers may be eligible for innocent spouse relief?

Callie, who is married to Alex. Alex prepared a return accurately reporting the couple's combined $77,000 in wage income. However, the return also claimed a $35,000 deduction for a charitable contribution to United Way. Callie signed the return without asking about this item.

Florenzo and Elsie are married, and both are small business owners. On April 15, the couple realized that they had forgotten to file their returns. While Florenzo watched, Elsie prepared a handwritten return for the couple in ten minutes, which Florenzo then signed. Although the income and expenses appeared to be correct, all of the income and expense items listed were multiples of 1,000. Florenzo couldn't recall for certain what the correct amounts were, so he was not sure that they were wrong.

Iris, who is married to Henry. Henry handles the family finances. Every year, Iris reviews and signs a joint return reporting approximately $18,000 in wage income. Henry and Iris live in a seven-bedroom house in an expensive neighborhood. They both own luxury cars, and every summer, they take a three-month tour of Europe. Iris has never asked to see the family finances, but Henry has never offered an alternate explanation for their affluent lifestyle.

Milo signed a joint return prepared by his wife, Alicia, which accurately reported the couple's income from wages. However, the return omitted investment income that Alicia earned by buying and selling stocks. The investments were all kept in a brokerage account under Alicia's name. Alicia told Milo she had moved the money to a joint savings account. Milo never saw the account balances and assumed the money had been sitting in a savings account ever since it was moved there.

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