a.
True
b.
False
ANSWER:
False
20. A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.
a.
True
b.
False
ANSWER:
False
21. A married person with a dependent child may choose to file as head of household if it reduces his or her tax liability.
a.
True
b.
False
ANSWER:
False
22. A taxpayer who is living alone, is legally separated from his or her spouse under a separate maintenance decree at year-end, and has no dependents should file as single.
a.
True
b.
False
ANSWER:
True
23. Tarique, age 22, is enrolled in college on a full-time basis. His parents provide all of his support. Tarqiue may be claimed as a dependent by his parents.
a.
True
b.
False
ANSWER:
True
24. A dependent that dies during the tax year may still qualify as a dependent.
a.
True
b.
False
ANSWER:
True
25. For 2020, the deduction for personal and dependency exemptions are $4,300 each.
a.
True
b.
False
ANSWER:
False
26. Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.
a.
True
b.
False
ANSWER:
True
27. The two types of dependents are qualifying child or qualifying relative.
a.
True
b.
False
ANSWER:
True
28. An 18-year-old full-time student who is claimed on the parents' tax return as a dependent is eligible for the child tax credit.
a.
True
b.
False
ANSWER:
False
29. Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.
a.
True
b.
False
ANSWER:
True
30. An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.
a.
True
b.
False
ANSWER:
True
31. Taxpayers can download tax forms from the IRS Internet site.
a.
True
b.
False
ANSWER:
True
32. Economic impact payments received in 2020 are taxable income
a.
True
b.
False
ANSWER:
False
33. The amount of the economic impact payment is the same for all taxpayers ($1,200).
a.
True
b.
False
ANSWER:
False
34. The economic impact payment and the recovery refund credit are always equal and offsetting.
a.
True
b.
False
ANSWER:
False
35. If the economic impact payment received by a taxpayer is more than the recovery rebate credit, the taxpayer will be required to repay the excess.
a.
True
b.
False
ANSWER:
False
36. If the economic impact payment received by a taxpayer is less than the recovery rebate credit, the taxpayer will be entitled to the additional credit..
a.
True
b.
False
ANSWER:
True
Multiple Choice