Scenarios Flashcards
A total of $23.50 is rounded up to
$24
$23.49 is rounded down to
$23
Bess Rymon and her coworkers worked late into the evening to fill a rush order for their employer. Because the workers were missing dinner, the boss sent out for pizza, which he gave to the workers to eat.
Is the value of the pizza taxable to Beth?
No, because it was consumed on employer premesis and provided for employer convenience.
Bob and Carol were married on December 31, 2017. Are they considered married or unmarried for the 2017 tax year>
Married
Ted and Alice’s divorce became final on December 31, 2017. Are they considered married or unmarried for the 2017 tax year?
Unmarried
Russell and Dawn have been married for several years. Russell died on March 27, 2017. Are they considered married or unmarried for the 2017 tax year?
Married
Deanna Shoenburger was born on January 1, 1977. How old is she considered to be tax year 2017?
For general tax purposes, she is considered to be age 41 for the 2017 tax year, even though her 41st birthday does not occur until January 1, 2018.
Jane McGuire’s 65th birthday is January 1, 2018. Is she 64 or 65 for tax year 2017?
65
Shelly Burrows died on September 21, 2017, a month before her 65th birthday. How old is she considered to be for tax year 2017
64
Jared Peterson, dependent son of Beverly Peterson, was born on January 1, 2001; his 17th birthday is January 1, 2018.
How old is he considered to be for general tax purposes?
How old is he considered to be for determining the CTC?
17 general tax purposes
16 CTC determination
Matthew (42) and Sue (41) Calendo will file a joint return.. How much is their standard deduction and personal exemptions? What is the gross income filing requirement?
Their standard deduction is $12,700 and personal exemptions are $8,100 [$4,050 x 2 individuals]. Their gross income filing requirement is $20,800 [$12,700 + $8,100 personal exemptions].
Larry White (66) uses the single filing status. How much is their standard deduction and personal exemption? What is the gross filing requirement?
His standard deduction is $7,900 [$6,350 + $1,550] and personal exemption is $4,050. His gross income filing requirement is $11,950 [$7,900 standard deduction + $4,050 personal exemption].
Larry’s brother, Jeff White (56), is blind and uses the single filing status. How much is his standard deduction and personal exemption? What is the gross filing requirement?
His standard deduction is also $7,900 [$6,350 + $1,550 = $7,900] and personal exemption is $4,050. His gross income filing requirement is $10,400 [$6,350 + $4,050 personal exemption = $10,400]. Notice that the extra $1,550 standard deduction for blindness does not count in the computation of his gross income filing requirement.
Raúl and Leah Martinez are married. Leah has no income of any kind and does not receive any other support, but she does not wish to file a joint return with Raúl. Can Raul claim Leah’s exemption if he MFS?
Yes
Mark and Janice Hall may claim their daughter, Linda (18), as a dependent. Because Linda holds a part-time job and must file a return, they decide not to claim Linda thinking that she may take her own exemption on her return. Will this work?
No. This tactic does not work. The fact that Linda may be claimed on her parents’ return precludes her from claiming her own personal exemption. If Mark and Janice do not claim Linda’s exemption, no one will benefit from the $4,050 reduction in taxable income.
Markus Kleen (16) is a dependent on his parents’ return. He is single, not legally blind, and his gross income for the year is $1,400 [$900 earned income + $500 unearned income]. Is Markus required to file a return?
When determining if Markus is required to file a return, his unearned income is below the $1,050 threshold amount, and his earned income is also below the $6,350 threshold amount. When applying the gross income threshold, first determine if the maximum threshold amount is the greater of $1,050 or Markus’ earned income plus $350. Because Markus’ earned income is $900, his gross income threshold amount is set at $1,250 [$900 + $350 = $1,250]. Markus is required to file a return, because his gross income of $1,400 is greater than his gross income threshold amount of $1,250.
$ 75.50 rounds to
$76
$ 75.49 rounds to
$75
$100.61 rounds to
$101
$199.75 rounds to
$200
5.746321% rounds to
5.75% or .0575
16.324979% rounds to
16.32% or ,1632
19.996123% rounds to
20.00 or ,2000
25.004657% rounds to
25.00 or ,2500