H&R Block Mid Term Review Complete Questions with 100% Correct Answers

H&R Block Mid Term Review Complete Questions with 100% Correct Answers What is the standard deduction for a taxpayer filing single? $6200 What is the standard deduction for a taxpayer filing married filing joint? $12400 What is the standard deduction for a taxpayer filing married filing separate? $6200 What is the standard deduction for a taxpayer filing qualifying widow? $9100 What is the standard deduction for a taxpayer filing head of household? $9100 What does Form 1099-G provide? Certain government payments such as unemployment. What is a standard deduction? A reduction in the amount of income subject to tax. It varies based on the taxpayer's filing status. What is the amount of taxable income that you can earn and still use the Tax Table? $100,000 What three factors determine the filing requirements for nondependents? 1. filing status 2. age 3. gross income What are the five filing status'? 1. Single 2. Married filing joint 3. Married filing separate 4. Qualifying widow 5. Head of household How do you determine marital status? Marital status is determined on the last day of the tax year. If the taxpayer is considered unmarried on the last day of the year what options do he/she have as a filing status? 1. Single 2. Head of household 3. Qualifying widow If the taxpayer is considered married on the last day of the year, the taxpayer may file as? 1. Married filing join 2. Married filing separate When is a nondependent taxpayer required to file a tax return? Generally, the nondependent taxpayer would be required to file a tax return when their gross income is equal to or greater than the sum of the taxpayer's standard deduction and personal exemption amount. If a person is filing married filing separately, when are they required to file a tax return? When their gross income equals or exceeds the personal exemption amount ($3950 for 2014). Taxpayers filing as single who are 65 or older and/or blind are entitled to what increased standard deduction. $1550 (per condition) Taxpayers filing as head of household who are 65 or older and/or blind are entitled to what increased standard deduction. $1550 (per condition) Taxpayers filing as married who are 65 or older and/or blind are entitled to what increased standard deduction. $1200 (per condition) Taxpayers filing as qualifying widow who are 65 or older and/or blind are entitled to what increased standard deduction. $1200 (per condition) When may a taxpayer filing married but separate claim a spouse's personal exemption? When the spouse: 1. has no gross income 2. is not filing a return 3. is not a dependent of another person When may a taxpayer with a nonresident alien spouse claim the spouse's personal exemption? When the spouse: 1. has no gross income 2. is not filing a return 3. is not a dependent of another person How do you determine if a dependent taxpayer is required to file? 1. Is their unearned income greater than $1000? If so, they must file. 2. Does their earned income exceed a specific threshold amount based on their marital status, age, or blind? If so, then they must file. 3. Is their spouse filing MFS and itemizing deductions? AND Does the dependent taxpayer have at least $5 of gross income? If so, then they must file. 4. Does their gross income exceed a specific threshold amount based on their marital status, age, or blind? If so, then they must file. When a married taxpayer wishes to file a MFS return and their spouse itemizes deductions on their return, what should the taxpayer do? The taxpayer should itemize deductions on their return as well because their standard deduction is reduced to $0. Is blindness a determining factor for gross income filing requirements for nondependents? NO Is blindness a determining factor for gross income filing requirements for dependents? Yes When can a parent elect to include their child's income on their tax return? IF: 1. the child in under the age of 19 or under the age of 24 and a full time student at the end of the tax year. 2. the child had income from only from interest and dividends 3. The child's gross income was less than $10,000 4. The child is required to file a return, unless the parent makes this election 5. The child does not file a joint return for the year 6. No federal income tax was withheld from the child's current year income, no current year estimated tax payments were made by or for the child, or no previous year over payments were applied against the child's current year tax liability. What is the penalty for failure to file? Generally 5% for each month that the return is late but not more than 25% When does a taxpayer use the Single filing status? When the taxpayer is: 1. unmarried 2. does not qualify to use head of household or qualifying widow.