Deck 1

Question 1

Qualifying Widow(er)

Answer 1

Taxpayer who may use the joint tax return standard deduction and rates for each of two taxable years following the year of death of his or her spouse, unless he or she remarries

Question 2

For the first subsequent tax year (and all other subsequent tax years) after the death of a spouse with no dependent children, what is the filing status available?

Answer 2

Single

Question 3

How long does the joint return rates apply after the death of a spouse?

Answer 3

2 years

Question 4

Widow/widower time period

Answer 4

Whole Year

Question 5

Head of household time period

Answer 5

Half a year or more than half a year

Question 6

Phase-out of Personal Exemptions

Answer 6

Phase-out reduces exemptions by two percent for every $2500 or portion thereof

Question 7

“SUPORT” dependency exemption

Answer 7

For qualifying relative; (S)upport (over 50%) test, (U)nder a specific amount of (taxable) gross income test, (P)recludes dependent filing a joint tax return test, (O)nly citizens test, (R)elative test, or (T)axpayer lives with individual for whole year test

Question 8

What is the exemption amount for 2015?

Answer 8

$4000

Question 9

Definition of taxable income

Answer 9

Only income that is taxable is included for the purpose of determining whether the dependent has earned less than the exemption amount

Question 10

Nontaxable income

Answer 10

Social security, tax-exempt interest income (state and municipal interest income), tax-exempt scholarships

Question 11

When is there an increased standard deduction (not an additional exemption)?

Answer 11

For being old (65 or older) and blind

Question 12

Examples of things that are tax free

Answer 12

Gift and inheritances (tax-free to the recipient); employer-provided medical insurance (tax-free fringe benefit)

Question 13

Requirements for payments to be classified as alimony:

Answer 13

Payments must be in cash or its equivalent, payments cannot extend beyond the death of the payee-spouse, Payments must be legally required pursuant to a written divorce (or separation) agreement, Payments cannot be made to members of the same household, Payments must not be designated as anything other than alimony, The spouses may not file a joint tax return

Question 14

Uniform Capitalization rules

Answer 14

Direct labor, direct materials, and factory overhead should be capitalized as part of the cost of inventory. Research should be expensed

Question 15

Rule related to deductions for foreign travel

Answer 15

If the foreign travel is primarily for personal in nature, none of the travel expenses incurred will be allowable business deductions, even if the taxpayer was involved in business activities

Question 16

Scholarships are nontaxable for degree seeking students to the extent that:

Answer 16

The proceeds are spent on tuition, fees, books, and supplies

Question 17

What is the maximum amount of benefits that may be included in gross income related to social security benefits?

Answer 17

85% of the social security benefits

Question 18

Charitable contributions are considered:

Answer 18

An itemized deduction

Question 19

Guaranteed payments

Answer 19

Reasonable compensation paid to a partner for services rendered without regard to his ratio of income

Question 20

Formula “BASE”

Answer 20

(B)eginning AR, (A)dd sales, (S)ubtract cash collections, = (E)nding AR

Question 21

All forms of unemployment compensation are included as part:

Answer 21

Gross income