,TABLE OF CONTENTS f f f
1. The Individual Income Tax Return.
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2. Gross Income and Exclusions.
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3. Business Income and Expenses, Part I.
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4. Business Income and Expenses, Part II.
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5. Itemized Deductions and Other Incentives.
f f f f f
6. Credits and Special Taxes.
f f f f
7. Accounting Periods and Methods and Depreciation.
f f f f f f
8. Capital Gains and Losses.
f f f f
9. Withholding, Estimated Payments, and Payroll Taxes.
f f f f f f
10. Partnership Taxation.
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11. The Corporate Income Tax.
f f f f
12. Tax Administration and Tax Planning.
f f f f f
,Chapter 1: The Individual Income Tax Return
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1. Afcorporationfisfafreportingfentityfbutfnotfaftax-payingfentity.
FALSE
2. Partnershipf capitalf gainsf andflossesf aref allocatedf separatelyf tof eachfoff thef partners.
TRUE
3. Marriedf taxpayersf mayf doublef theirf standardf deductionf amountf byf filingf separatefreturns.
FALSE
4. Anfitemfisf notfincludedf inf grossfincomefunlessf thef taxf lawf specifiesf thatf thefitemfisfsubjectftoftaxati
on.
FALSE
5. Forf taxpayersf whof dof notf itemizef deductions,f thef standardf deductionf amountf isfsubtractedffro
mftheftaxpayer'sfadjustedfgrossfincome.
TRUE
6. Aftaxpayerfwithfself-employmentfincomefoff$600fmustffilefaftaxfreturn.
TRUE
7. Af dependentf childf withf earnedf incomef inf excessf off thef availablef standardf deductionfamountfmustffi
lefaftaxfreturn.
TRUE
8. Af singlef taxpayer,f whof isf notf blindf andf whof isf underf agef 65,f withf incomef off $8,750fmustffilefaftaxf
return.
FALSE
, 9. Iffaftaxpayerfisfduefafrefund,fitfwillfbefmailedftoftheftaxpayerfregardlessfoffwhetherfheforfsheffilesfaftaxfr
eturn.
FALSE
10. Taxpayersfwithfself-employmentfincomefoff$400forfmorefmustffilefaftaxfreturn.
TRUE
11. Iff yourf spousef diesf duringf thef taxf yearf andf youf dof notf remarry,f youf mustf filef asfsinglefforfthefy
earfoffdeath.
FALSE
12. Taxpayersfwhofdofnotfqualifyfforfmarried,fheadfoffhousehold,forfqualifyingfwidowforfwidowerffilin
gfstatusfmustffilefasfsingle.
TRUE
13. Iffanfunmarriedftaxpayerfpaidfmorefthanfhalff thef costfoff keepingf afhomef whichfisf thefprincipalf placefo
ff residencefoff afnephew,f whofisfnotf herfdependent,f shefmayfusefthefheadfoffhouseholdffilingfstatus.
FALSE
14. Thefmaximumfofficialfindividualfincomeftaxfratefforf2012fisf35fpercent.
TRUE
15. Allftaxpayersfmayfuseftheftaxfratefscheduleftofdetermineftheirftaxfliability.
FALSE
16. Thef headfoffhouseholdftaxfratesf arefhigherf thanf thefratesf forf afsingleftaxpayer.
FALSE
17. Mostf statesf aref communityf propertyf states.
FALSE
1. The Individual Income Tax Return.
f f f f f
2. Gross Income and Exclusions.
f f f f
3. Business Income and Expenses, Part I.
f f f f f f
4. Business Income and Expenses, Part II.
f f f f f f
5. Itemized Deductions and Other Incentives.
f f f f f
6. Credits and Special Taxes.
f f f f
7. Accounting Periods and Methods and Depreciation.
f f f f f f
8. Capital Gains and Losses.
f f f f
9. Withholding, Estimated Payments, and Payroll Taxes.
f f f f f f
10. Partnership Taxation.
f f
11. The Corporate Income Tax.
f f f f
12. Tax Administration and Tax Planning.
f f f f f
,Chapter 1: The Individual Income Tax Return
f f f f f f
1. Afcorporationfisfafreportingfentityfbutfnotfaftax-payingfentity.
FALSE
2. Partnershipf capitalf gainsf andflossesf aref allocatedf separatelyf tof eachfoff thef partners.
TRUE
3. Marriedf taxpayersf mayf doublef theirf standardf deductionf amountf byf filingf separatefreturns.
FALSE
4. Anfitemfisf notfincludedf inf grossfincomefunlessf thef taxf lawf specifiesf thatf thefitemfisfsubjectftoftaxati
on.
FALSE
5. Forf taxpayersf whof dof notf itemizef deductions,f thef standardf deductionf amountf isfsubtractedffro
mftheftaxpayer'sfadjustedfgrossfincome.
TRUE
6. Aftaxpayerfwithfself-employmentfincomefoff$600fmustffilefaftaxfreturn.
TRUE
7. Af dependentf childf withf earnedf incomef inf excessf off thef availablef standardf deductionfamountfmustffi
lefaftaxfreturn.
TRUE
8. Af singlef taxpayer,f whof isf notf blindf andf whof isf underf agef 65,f withf incomef off $8,750fmustffilefaftaxf
return.
FALSE
, 9. Iffaftaxpayerfisfduefafrefund,fitfwillfbefmailedftoftheftaxpayerfregardlessfoffwhetherfheforfsheffilesfaftaxfr
eturn.
FALSE
10. Taxpayersfwithfself-employmentfincomefoff$400forfmorefmustffilefaftaxfreturn.
TRUE
11. Iff yourf spousef diesf duringf thef taxf yearf andf youf dof notf remarry,f youf mustf filef asfsinglefforfthefy
earfoffdeath.
FALSE
12. Taxpayersfwhofdofnotfqualifyfforfmarried,fheadfoffhousehold,forfqualifyingfwidowforfwidowerffilin
gfstatusfmustffilefasfsingle.
TRUE
13. Iffanfunmarriedftaxpayerfpaidfmorefthanfhalff thef costfoff keepingf afhomef whichfisf thefprincipalf placefo
ff residencefoff afnephew,f whofisfnotf herfdependent,f shefmayfusefthefheadfoffhouseholdffilingfstatus.
FALSE
14. Thefmaximumfofficialfindividualfincomeftaxfratefforf2012fisf35fpercent.
TRUE
15. Allftaxpayersfmayfuseftheftaxfratefscheduleftofdetermineftheirftaxfliability.
FALSE
16. Thef headfoffhouseholdftaxfratesf arefhigherf thanf thefratesf forf afsingleftaxpayer.
FALSE
17. Mostf statesf aref communityf propertyf states.
FALSE
