Q1 A couple, age 50, 52, file a joint return for 2012, the couple claims their son as a dependent. The wife is legally blind. For purposes of the requirement to file a tax return, the gross income t

Q1 A couple, age 50, 52, file a joint return for 2012, the couple claims their son as a dependent. The wife is legally blind. For purposes of the requirement to file a tax return, the gross income threshold for the couple is__________

Q2 Taxpayer can not take the earned income credit if they have qualified income in excess of ____________

Q3 Taxpayers report state income tax refunds as income only if they receive a ____________ from its deduction in a prior year.

Q4 Under an adoption assistance program, employees can exclude up to _______

Of employer paid adoption expense for a healthy child.

Q5 A taxpayer pays $2400 in points when taking out a 15year loan to buy a vacation home. If the purchase of the home take place on Sept.1 2012, the taxpayer deducts______ as points on his 2012schedule A. Round your answer to the nearest dollar.

Q6 Activities are generally treated as a business (instead of hobby) if over a 5year period they can show a profit in __________years.

Q7 An__________reimbursement plan requires that employees return any excess reimbursement to their employer.

Q8 Rusty received a $35,000 salary during the year. In additon, Rusty had a long-term capital loss of $3100, a long-term capital gain of $2000 and a short-term capital loss of $100, what is Rusty’s adjust gross income if they are the only item to consider

A 21,800 B33800 C none of the other choices D 35000 E 23000

Q9 Bobby( unmarried, age66) maintains a household where his elderly father( age88) lives. Bobby cannot claim his father as a dependent because his father does not pass the gross income test. Bobby’s 2012 standard deduction is

A 7100 B 5950 C 10150 D8700 E 7400

Q10 A dependent’s only income for 2012 is $5800 of taxable wages and $640 of taxable interest on a saving account. The dependent’s 2012 taxable income is

A 340 B 940 C none of the other choices D 490 E 0

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Federal income tax mid- term exam
Q1 A couple, age 50, 52, file a joint return for 2012, the couple claims their son as a
dependent.
The wife is legally blind.
For purposes of the requirement to file a tax
return, the gross income threshold for the couple is__________
Q2 Taxpayer can not take the earned income credit if they have qualified income in
excess of ____________
Q3 Taxpayers report state income tax refunds as income only if they receive a
____________ from its deduction in a prior year.
Q4 Under an adoption assistance program, employees can exclude up to _______
Of employer paid adoption expense for a healthy child.
Q5 A
taxpayer pays $2400 in points when taking out a 15year loan to buy a vacation
home.
If the purchase of the home take place on Sept.1 2012, the taxpayer
deducts______ as points on his 2012schedule A. Round your answer to the nearest
dollar.
Q6 Activities are generally treated as a business (instead of hobby) if over a 5year
period they can show a profit in __________years.
Q7 An__________reimbursement plan requires that employees return any excess
reimbursement to their employer.
Q8 Rusty received a $35,000 salary during the year.
In additon, Rusty had a long-
term capital loss of $3100, a long-term capital gain of $2000 and a short-term capital
loss of $100, what is Rusty’s adjust gross income if they are the only item to consider
A 21,800
B33800
C none of the other choices
D 35000
E 23000
Q9 Bobby( unmarried, age66) maintains a household where his elderly father( age88)
lives.
Bobby cannot claim his father as a dependent because his father does not pass
the gross income test.
Bobby’s 2012 standard deduction is
A 7100
B 5950
C 10150
D8700
E 7400
Q10 A dependent’s only income for 2012 is $5800 of taxable wages and $640 of
taxable interest on a saving account.
The dependent’s 2012 taxable income is
A 340
B 940
C none of the other choices
D 490
E 0

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