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26. An individual is indifferent between filing as a single taxpayer or a head of household if he has $8,500 or
less of taxable income.
27. Married individuals who elect to file separate tax returns may use the single rates to compute their
28. An individual with $400,000 taxable income has the same marginal rate as a single taxpayer or as a head
29. It is impossible for a progressive income tax system to be both marriage neutral and horizontally
30. Mr. and Mrs. Kline file a joint return on which they claim the standard deduction and two exemptions. If
the taxable income on their return is $55,300, they are not paying a marriage penalty.
31. Mr. and Mrs. Toliver's AGI on their jointly filed return is $339,000. Regardless of the number of their
children, the Tolivers are not eligible for a child credit.
32. Mr. and Mrs. Casey have two dependent children, ages 3 and 6. The Caseys spent $10,300 for child care
this year. Mrs. Casey is employed full-time as an attorney. Mr. Casey is an unpublished novelist who has
yet to earn any money from his writing. The Caseys are eligible for a dependent care credit.
33. The earned income credit is only available to low-income taxpayers with dependent children.
34. The earned income credit offsets the burden of the federal payroll tax on low-income families and
encourages individuals to seek employment rather than to depend on welfare.
35. Mrs. Starling worked for Abbot Inc. from January 1 through September 19. Her salary from Abbot for
this period totaled $122,000. Mrs. Starling worked for JJT Inc. from October 1 through December 31. Her
salary from JJT for this period totaled $38,000. JJT is not required to withhold Social Security tax from
Mrs. Starling's salary because Abbot Inc. already withheld the maximum tax for the year.
36. An individual must pay the greater of her regular income tax or her alternative minimum tax (AMT) for
37. The standard deduction and exemption amount are not deductible in the computation of alternative
minimum taxable income.
38. Every individual taxpayer is entitled to an AMT exemption, the amount of which varies with filing
39. The highest individual marginal rate for regular tax purposes is 35%, while the highest individual
marginal rate for alternative minimum tax (AMT) purposes is only 28%.
40. Miss Blixen's regular income tax is $77,390, and her tentative minimum tax is $74,100. Consequently,
Miss Blixen's alternative minimum tax (AMT) is zero.
41. The unextended due date for the individual tax return (Form 1040) is the 15th day of the third month
following the close of the taxable year.
42. Mr. Pearl's total income and self-employment tax on this year's Form 1040 is $72,610. If Mr. Pearl paid at
least $65,349 of this tax in the form of withholding or quarterly estimated payments, he will not incur an
43. Individual taxpayers can obtain an automatic extension of time to file a calendar year Form 1040 until
October 15 of the following year.
44. An extension of the time to file an individual tax return also extends the time to pay any balance of tax
due with the return.
45. Mr. and Mrs. Eller's AGI last year was $287,300, and their total tax was $70,268. The couple's safeharbor
estimate of current year tax is $77,295.
46. Mr. and Mrs. Warren's AGI last year was $90,300, and their total tax was $13,988. This year, the couple's
total tax is $14,700. Unless the Warrens paid at least $13,988 in the form of withholding and quarterly
estimated payments, they will incur an underpayment penalty this year.
47. Samantha died on January 18, 2010. Her husband Dave lived by himself for the next three years until he
remarried in 2013. What was Dave's filing status in 2010 and 2011?
A. Married filing jointly in 2010; surviving spouse in 2011.
B. Married filing jointly in 2010; single in 2011.
C. Surviving spouse in 2010 and 2011.
D. Surviving spouse in 2010; single in 2011.
48. Leon died on August 23, 2009, and his wife Mary has not remarried. Since her husband's death, Mary has
maintained a home for her two dependent children, who were ages 7 and 4 when their father died. Which
of the following describes Mary's filing status for 2010, 2011, and 2012?
A. Surviving spouse for 2010, 2011, and 2012.
B. Surviving spouse for 2010 and 2011; head of household for 2012.
C. Head of household for 2010, 2011, and 2012.
D. Surviving spouse for 2010; head of household for 2011 and 2012.
49. Mr. Jones and his first wife were legally divorced on February 19, 2011. Mr. Jones remarried the second
Mrs. Jones on December 20, 2011. Which of the following describes Mr. Jones' filing status in 2011?
A. Married filing jointly with the second Mrs. Jones
B. Married filing jointly with the first Mrs. Jones
C. Married filing separately (can't file jointly with either spouse)
D. None of the above
50. Which of the following statements regarding filing status is false?
A widow or widower maintaining a home for a dependent child qualifies as surviving spouse for two
tax years following the year of the spouse's death.
B. Marital status for tax purposes is determined on the last day of the year.
C. Any unmarried individual with a dependent child qualifies as head of household.
D. An unmarried individual without children or other dependents files as a single taxpayer.