COMPREHENSIVE MODULE 1 : FINAL EXAM PART 1 THE INCOME
TAX SCHOOL ALL DONE EXAM SOLUTION
Comprehensive Module 1: Final Exam
1. Bob uses the cash method of accounting. During the tax year (calendar year), he had the
following income and expenses:
Interest on a savings account (credited to his account on $ 68
January 2 of next year)
Dividend received from Virginia Credit Union $814
Interest received on a 5-year certificate of deposit (left in CD $910
account to compound)
Penalty on the early withdrawal of the 5-year certificate of $ 50
deposit
What is the amount of interest income Bob must report for the current tax year?
a) $1,792
b) $ 910
c) $1,724
d) $1,674
2. The Smiths are married and have filed jointly in prior years. On July 29th of the current tax
year, the Smiths separated and filed for divorce. Mrs. Smith has decided to file separately this
year. Which of the following statements is true?
a) The taxpayers must be living apart from their spouse to file Married Filing Separately.
b) The taxpayers must be living together as of December 31 to file Married Filing Separately.
c) A married taxpayer can file Married Filing Separately if living together or apart.
d) The taxpayers must have lived apart from their spouse for the last six months of the year.
3. Mark and Julie, married, with no dependents, have filed a joint return in previous years. Julie
died in March 2018. Which filing status would be most beneficial for Mark in tax year 2018?
a) Single
b) Married Filing Jointly
c) Head of Household
d) Qualifying Widow(er) with Dependent Child
4. Which of the following pieces of information is shown/found on Form W2?
a) The taxpayer’s filing status, wages, tips, and other compensation.
b) The taxpayer’s wages, tips, and other compensation
c) The taxpayer’s refund and amount of tax withheld.
d) The taxpayer’s unreported tips along with the taxpayer’s reported tips
Copyright © 2019, The Income Tax School, Inc. – All Rights Reserved Comp Module 1 FE - 1
, 5. Dani is a 25-year old full-time graduate student. Following are the tax-related facts we know
about Dani.
Beginning in tax year 2018, Dani is no longer a dependent on her parent’s tax return.
Dani was laid off at her job on October 15th and received a Form W-2 for earnings
from January through October.
Dani received unemployment income from October 15th through December 31st after
being laid off from her job.
Dani paid for her graduate school education in the current tax year and is eligible for
a nonrefundable tax credit.
Which Schedule(s) must Dani complete in addition to Form 1040?
a) Schedules 1 and 3
b) Schedules 1 and 2
c) Schedule 6
d) Schedules 3 and 5
6. Which of the following statements is most accurate as related to the requirements of a paid tax
preparer?.
a) A paid preparer must sign the taxpayer’s tax return and provide their SSN on the return.
b) The paid preparer must sign the taxpayer’s tax return and provide their PTIN on the tax
return.
c) A paid preparer must sign the taxpayer’s tax return, provide their SSN and PTIN on the tax
return.
d) A paid prepaprer must provide their PTIN on a taxpayer’s tax return.
7. Don, age 18, is being claimed as a dependent on his parent’s tax return. Which of the following
would require Don to file a tax return?
a) Don is married and has earned income totaling $12,000. Don also has unearned income
totaling $295.
b) Don is single and has earned income totaling $12,000.
c) Don’s only source of income was unearned interest income totaling $1,000.
d) Don has unearned interest income totaling $1,000 and earnings totaling $11,000 from a
part-time job.
8. Henry and Jane are married and file jointly. Jane’s birthday is 12/31/1953 and Henry’s birthday
is 1/1/1954. What is their filing requirement for 2018?
a) $24,000
b) $25,300
c) $26,600
d) $28,500
9. Mary’s husband, Bob, died March 12, 2018. She married Richard on December 15, 2018.
What will Bob’s filing status be?
a) Single
b) Married Filing Jointly
c) Married Filing Separately
d) Head of Household
Copyright © 2019, The Income Tax School, Inc. – All Rights Reserved Comp Module 1 FE - 2
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TAX SCHOOL ALL DONE EXAM SOLUTION
Comprehensive Module 1: Final Exam
1. Bob uses the cash method of accounting. During the tax year (calendar year), he had the
following income and expenses:
Interest on a savings account (credited to his account on $ 68
January 2 of next year)
Dividend received from Virginia Credit Union $814
Interest received on a 5-year certificate of deposit (left in CD $910
account to compound)
Penalty on the early withdrawal of the 5-year certificate of $ 50
deposit
What is the amount of interest income Bob must report for the current tax year?
a) $1,792
b) $ 910
c) $1,724
d) $1,674
2. The Smiths are married and have filed jointly in prior years. On July 29th of the current tax
year, the Smiths separated and filed for divorce. Mrs. Smith has decided to file separately this
year. Which of the following statements is true?
a) The taxpayers must be living apart from their spouse to file Married Filing Separately.
b) The taxpayers must be living together as of December 31 to file Married Filing Separately.
c) A married taxpayer can file Married Filing Separately if living together or apart.
d) The taxpayers must have lived apart from their spouse for the last six months of the year.
3. Mark and Julie, married, with no dependents, have filed a joint return in previous years. Julie
died in March 2018. Which filing status would be most beneficial for Mark in tax year 2018?
a) Single
b) Married Filing Jointly
c) Head of Household
d) Qualifying Widow(er) with Dependent Child
4. Which of the following pieces of information is shown/found on Form W2?
a) The taxpayer’s filing status, wages, tips, and other compensation.
b) The taxpayer’s wages, tips, and other compensation
c) The taxpayer’s refund and amount of tax withheld.
d) The taxpayer’s unreported tips along with the taxpayer’s reported tips
Copyright © 2019, The Income Tax School, Inc. – All Rights Reserved Comp Module 1 FE - 1
, 5. Dani is a 25-year old full-time graduate student. Following are the tax-related facts we know
about Dani.
Beginning in tax year 2018, Dani is no longer a dependent on her parent’s tax return.
Dani was laid off at her job on October 15th and received a Form W-2 for earnings
from January through October.
Dani received unemployment income from October 15th through December 31st after
being laid off from her job.
Dani paid for her graduate school education in the current tax year and is eligible for
a nonrefundable tax credit.
Which Schedule(s) must Dani complete in addition to Form 1040?
a) Schedules 1 and 3
b) Schedules 1 and 2
c) Schedule 6
d) Schedules 3 and 5
6. Which of the following statements is most accurate as related to the requirements of a paid tax
preparer?.
a) A paid preparer must sign the taxpayer’s tax return and provide their SSN on the return.
b) The paid preparer must sign the taxpayer’s tax return and provide their PTIN on the tax
return.
c) A paid preparer must sign the taxpayer’s tax return, provide their SSN and PTIN on the tax
return.
d) A paid prepaprer must provide their PTIN on a taxpayer’s tax return.
7. Don, age 18, is being claimed as a dependent on his parent’s tax return. Which of the following
would require Don to file a tax return?
a) Don is married and has earned income totaling $12,000. Don also has unearned income
totaling $295.
b) Don is single and has earned income totaling $12,000.
c) Don’s only source of income was unearned interest income totaling $1,000.
d) Don has unearned interest income totaling $1,000 and earnings totaling $11,000 from a
part-time job.
8. Henry and Jane are married and file jointly. Jane’s birthday is 12/31/1953 and Henry’s birthday
is 1/1/1954. What is their filing requirement for 2018?
a) $24,000
b) $25,300
c) $26,600
d) $28,500
9. Mary’s husband, Bob, died March 12, 2018. She married Richard on December 15, 2018.
What will Bob’s filing status be?
a) Single
b) Married Filing Jointly
c) Married Filing Separately
d) Head of Household
Copyright © 2019, The Income Tax School, Inc. – All Rights Reserved Comp Module 1 FE - 2
,
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