True / False
1. The US federal tax law's sole purpose is to raise revenue.
a.
True
b.
False
ANSWER:
False
2. A corporation is a reporting entity but not a tax-paying entity.
a.
True
b.
False
ANSWER:
False
3. Partnership capital gains and losses are allocated separately to each of the partners.
a.
True
b.
False
ANSWER:
True
4. Married taxpayers may double their standard deduction amount by filing separate returns.
a.
True
b.
False
ANSWER:
False
5. An item is not included in gross income unless the tax law specifies that the item is subject to taxation.
a.
True
b.
False
ANSWER:
False
6. For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.
a.
True
b.
False
ANSWER:
True
7. A taxpayer with self-employment income of $600 must file a tax return.
a.
True
b.
False
ANSWER:
True
8. A dependent child with earned income in excess of the available standard deduction amount must file a tax return.
a.
True
b.
False
ANSWER:
True
9. A single taxpayer, who is not a dependent on another’s return, not blind and under age 65, with income of $11,750 must file a tax return.
a.
True
b.
False
ANSWER:
False
10. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.
a.
True
b.
False
ANSWER:
False
11. Taxpayers with self-employment income of $400 or more must file a tax return.
a.
True
b.
False
ANSWER:
True
12. If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.
a.
True
b.
False
ANSWER:
False
13. Taxpayers who do not qualify for married, head of household, or qualifying widow or widower filing status must file as single.
a.
True
b.
False
ANSWER:
True
14. If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew, who is not her dependent, she may use the head of household filing status.
a.
True
b.
False
ANSWER:
False
15. The maximum official individual income tax rate for 2020 is 39.6 percent, not including the Medicare surtax on net investment income.
a.
True
b.
False
ANSWER:
False
16. All taxpayers may use the tax rate schedule to determine their tax liability.
a.
True
b.
False
ANSWER:
False
17. The head of household tax rates are higher than the rates for a single taxpayer.
a.
True
b.
False
ANSWER:
False
18. Most states are community property states.
a.
True
b.
False
ANSWER:
False
19. If taxpayers are married and living together at the end of the year, they must file a joint tax return.
1. The US federal tax law's sole purpose is to raise revenue.
a.
True
b.
False
ANSWER:
False
2. A corporation is a reporting entity but not a tax-paying entity.
a.
True
b.
False
ANSWER:
False
3. Partnership capital gains and losses are allocated separately to each of the partners.
a.
True
b.
False
ANSWER:
True
4. Married taxpayers may double their standard deduction amount by filing separate returns.
a.
True
b.
False
ANSWER:
False
5. An item is not included in gross income unless the tax law specifies that the item is subject to taxation.
a.
True
b.
False
ANSWER:
False
6. For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.
a.
True
b.
False
ANSWER:
True
7. A taxpayer with self-employment income of $600 must file a tax return.
a.
True
b.
False
ANSWER:
True
8. A dependent child with earned income in excess of the available standard deduction amount must file a tax return.
a.
True
b.
False
ANSWER:
True
9. A single taxpayer, who is not a dependent on another’s return, not blind and under age 65, with income of $11,750 must file a tax return.
a.
True
b.
False
ANSWER:
False
10. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.
a.
True
b.
False
ANSWER:
False
11. Taxpayers with self-employment income of $400 or more must file a tax return.
a.
True
b.
False
ANSWER:
True
12. If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.
a.
True
b.
False
ANSWER:
False
13. Taxpayers who do not qualify for married, head of household, or qualifying widow or widower filing status must file as single.
a.
True
b.
False
ANSWER:
True
14. If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew, who is not her dependent, she may use the head of household filing status.
a.
True
b.
False
ANSWER:
False
15. The maximum official individual income tax rate for 2020 is 39.6 percent, not including the Medicare surtax on net investment income.
a.
True
b.
False
ANSWER:
False
16. All taxpayers may use the tax rate schedule to determine their tax liability.
a.
True
b.
False
ANSWER:
False
17. The head of household tax rates are higher than the rates for a single taxpayer.
a.
True
b.
False
ANSWER:
False
18. Most states are community property states.
a.
True
b.
False
ANSWER:
False
19. If taxpayers are married and living together at the end of the year, they must file a joint tax return.