Submitted by: Submitted by nmobl001
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Category: Business and Industry
Date Submitted: 06/08/2016 09:39 AM
* The U.S. tax laws are based on the all-inclusive concept where gross income includes all realized income from “whatever source derived.”
* Income that is taxed in the current year according to the tax rate schedule is referred to as ordinary income.
* How does a taxpayer determine which filing status to use?
* Whether or not the taxpayer has dependents
* Whether or not the taxpayer is married at the end of the year
* Put the following items in the order in which they are found in the individual income tax formula.
* Gross Income
* Minus for AGI deductions
* Equals adjusted gross income
* Minus from AGI deductions
* Equals taxable income
* Which of the choices below is NOT one of the tests that must be met to qualify as a qualifying relative? Age (the tests are gross income, relationship, and support)
* In order to meet the Support test, the taxpayer must pay more than half of the living expenses for the qualifying relative.
* When can the married filing jointly or married filing separately filing status be used?
* When on spouse died during the year and the surviving spouse has not remarried
* When the taxpayers are married as of the last day of the tax year
* Rank the filing status according to which is the most favorable for taxpayers.
* Married filing jointly
* Head of the household
* Single
* A tax deduction is subtracted from an individual’s taxable income.
* If a taxpayer is unmarried at the end of the year, which of the following filing statuses could possibly be used by the individual?
* Qualifying widow or widower
* Single
* Head of the Household
* Which of the following individuals would NOT meet the relationship test for being a qualifying relative of the taxpayer through a qualifying family relationship? Cousin
* The gross income test requires that a qualifying relative’s gross income for the year be...