a.
$18,000
b.
$12,600
c.
$21,000
d.
$26,000
e.
None of these
ANSWER:
c
49. An individual is a head of household. What is her standard deduction?
a.
$12,400
b.
$24,800
c.
$18,350
d.
$18,650
e.
None of these
ANSWER:
d
50. Eugene and Velma are married. For 2020, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Eugene's itemized deductions are $14,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state and Eugene deducts the greater of the standard deduction or itemized deductions, what is Eugene's taxable income?
a.
$10,800
b.
$18,000
c.
$12,600
d.
$21,000
e.
None of these
ANSWER:
a
51. Oscar and Mary have no dependents and file a joint income tax return for 2020. They have adjusted gross income (all wages) of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2020 income tax return?
a.
$115,200
b.
$93,600
c.
$102,000
d.
$110,000
e.
$140,000
ANSWER:
d
52. Which of the following taxpayers does not have to file a tax return for 2020?
a.
A single taxpayer who is under age 65, with income of $13,500.
b.
Married taxpayers (ages 45 and 50 years), filing jointly, with income of $26,000.
c.
A student, age 22, with unearned income of $2,500 who is claimed as a dependent by her parents.
d.
A qualifying widow (age 67) with a dependent child and income of $18,800.
e.
All of these are correct.
ANSWER:
d
53. In which of the following situations is the taxpayer not required to file a 2020 income tax return?
a.
When an individual has a current year income tax refund and would like to obtain it.
b.
When the taxpayer is a single 67-year-old with wages of $9,800.
c.
When the taxpayer is a 35-year-old head of household with wages of $18,900.
d.
When the taxpayer is a 69-year-old widow (spouse died 3 years ago) with wages of $16,500 and no dependents.
e.
When the taxpayers are a married couple with both spouses under 65 years old with wages of $26,000.
ANSWER:
b
54. All of the following factors are important in determining whether an individual is required to file an income tax return, except:
a.
The taxpayer's filing status.
b.
The taxpayer's gross income.
c.
The taxpayer's total itemized deductions.
d.
The availability of the additional standard deduction for taxpayers who are elderly.
e.
None of these.
ANSWER:
c
55. John, 45 years old and unmarried, contributed $1,000 monthly in 2020 to the support of his parents' household. The parents lived alone and their income for 2020 consisted of $500 from dividends and interest. What is John's filing status and how many dependents should he claim on his 2020 tax return?
a.
Single and no dependents
b.
Head of household and no dependents
c.
Single and 2 dependents
d.
Head of household and 2 dependents
e.
None of these
ANSWER:
d
56. During 2020, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no income. What is Murray's filing status for 2020, and how many dependents should he report on his tax return?