Chap 01 2025 - Whittenburg
Indicate whether the statement is true or false.
1. Taxpayers with self-employment income of $400 or more must file a tax return.
a. True
b. False
ANSWER: True
2. The U.S. federal tax law's sole purpose is to raise revenue.
a. True
b. False
ANSWER: False
3. The two types of dependents are qualifying child or qualifying relative.
a. True
b. False
ANSWER: True
4. Malik, age 22, is enrolled in college on a full-time basis. His parents provide all of his support. Malik may be
claimed as a dependent by his parents.
a. True
b. False
ANSWER: True
5. An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.
a. True
b. False
ANSWER: True
6. For 2024, the deductions for personal and dependency exemptions are $4,300 each.
a. True
b. False
ANSWER: False
7. Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions,
whichever is higher.
a. True
b. False
ANSWER: True
Page 1
,Name: Class: Date:
Chap 01 2025 - Whittenburg
8. A taxpayer with self-employment income of $600 must file a tax return.
a. True
b. False
ANSWER: True
9. A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if
the child is not the taxpayer's dependent.
a. True
b. False
ANSWER: False
10. Married taxpayers may double their standard deduction amount by filing separate returns.
a. True
b. False
ANSWER: False
11. If taxpayers are married and living together at the end of the year, they must file a joint tax return.
a. True
b. False
ANSWER: False
12. For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's
adjusted gross income.
a. True
b. False
ANSWER: True
13. A dependent who dies during the tax year may still qualify as a dependent.
a. True
b. False
ANSWER: True
14. If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.
a. True
b. False
ANSWER: False
Page 2
,Name: Class: Date:
Chap 01 2025 - Whittenburg
15. Taxpayers who live alone, are legally separated from their spouses under a separate maintenance decree at
year-end, and have no dependents should file as single.
a. True
b. False
ANSWER: True
16. Partnership capital gains and losses are allocated separately to each of the partners.
a. True
b. False
ANSWER: True
17. An item is included in gross income unless the tax law specifies that the item is subject to exclusion.
a. True
b. False
ANSWER: True
18. Most states are community property states.
a. True
b. False
ANSWER: False
19. Taxpayers who do not qualify for married, head of household, or surviving spouse filing status must file as
single.
a. True
b. False
ANSWER: True
20. A corporation is a reporting entity but not a tax-paying entity.
a. True
b. False
ANSWER: False
21. A dependent child with earned income in excess of the available standard deduction amount must file a tax
return.
a. True
b. False
ANSWER: True
Page 3
, Name: Class: Date:
Chap 01 2025 - Whittenburg
22. The maximum official individual income tax rate for 2024 is 39.6%, not including the Medicare surtax on net
investment income.
a. True
b. False
ANSWER: False
23. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether a tax return is filed.
a. True
b. False
ANSWER: False
24. Taxpayers can download tax forms from the IRS website.
a. True
b. False
ANSWER: True
25. An 18-year-old full-time student who is claimed on the parents' tax return as a dependent is eligible for the child
tax credit.
a. True
b. False
ANSWER: False
26. Scholarships received by a student may be excluded for purposes of the support test for determining the
availability of the dependency exemption.
a. True
b. False
ANSWER: True
27. The head of household tax rates are higher than the rates for a single taxpayer.
a. True
b. False
ANSWER: False
28. All taxpayers may use the tax rate schedule to determine their tax liability.
a. True
b. False
ANSWER: False
Page 4
Indicate whether the statement is true or false.
1. Taxpayers with self-employment income of $400 or more must file a tax return.
a. True
b. False
ANSWER: True
2. The U.S. federal tax law's sole purpose is to raise revenue.
a. True
b. False
ANSWER: False
3. The two types of dependents are qualifying child or qualifying relative.
a. True
b. False
ANSWER: True
4. Malik, age 22, is enrolled in college on a full-time basis. His parents provide all of his support. Malik may be
claimed as a dependent by his parents.
a. True
b. False
ANSWER: True
5. An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.
a. True
b. False
ANSWER: True
6. For 2024, the deductions for personal and dependency exemptions are $4,300 each.
a. True
b. False
ANSWER: False
7. Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions,
whichever is higher.
a. True
b. False
ANSWER: True
Page 1
,Name: Class: Date:
Chap 01 2025 - Whittenburg
8. A taxpayer with self-employment income of $600 must file a tax return.
a. True
b. False
ANSWER: True
9. A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if
the child is not the taxpayer's dependent.
a. True
b. False
ANSWER: False
10. Married taxpayers may double their standard deduction amount by filing separate returns.
a. True
b. False
ANSWER: False
11. If taxpayers are married and living together at the end of the year, they must file a joint tax return.
a. True
b. False
ANSWER: False
12. For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's
adjusted gross income.
a. True
b. False
ANSWER: True
13. A dependent who dies during the tax year may still qualify as a dependent.
a. True
b. False
ANSWER: True
14. If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.
a. True
b. False
ANSWER: False
Page 2
,Name: Class: Date:
Chap 01 2025 - Whittenburg
15. Taxpayers who live alone, are legally separated from their spouses under a separate maintenance decree at
year-end, and have no dependents should file as single.
a. True
b. False
ANSWER: True
16. Partnership capital gains and losses are allocated separately to each of the partners.
a. True
b. False
ANSWER: True
17. An item is included in gross income unless the tax law specifies that the item is subject to exclusion.
a. True
b. False
ANSWER: True
18. Most states are community property states.
a. True
b. False
ANSWER: False
19. Taxpayers who do not qualify for married, head of household, or surviving spouse filing status must file as
single.
a. True
b. False
ANSWER: True
20. A corporation is a reporting entity but not a tax-paying entity.
a. True
b. False
ANSWER: False
21. A dependent child with earned income in excess of the available standard deduction amount must file a tax
return.
a. True
b. False
ANSWER: True
Page 3
, Name: Class: Date:
Chap 01 2025 - Whittenburg
22. The maximum official individual income tax rate for 2024 is 39.6%, not including the Medicare surtax on net
investment income.
a. True
b. False
ANSWER: False
23. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether a tax return is filed.
a. True
b. False
ANSWER: False
24. Taxpayers can download tax forms from the IRS website.
a. True
b. False
ANSWER: True
25. An 18-year-old full-time student who is claimed on the parents' tax return as a dependent is eligible for the child
tax credit.
a. True
b. False
ANSWER: False
26. Scholarships received by a student may be excluded for purposes of the support test for determining the
availability of the dependency exemption.
a. True
b. False
ANSWER: True
27. The head of household tax rates are higher than the rates for a single taxpayer.
a. True
b. False
ANSWER: False
28. All taxpayers may use the tax rate schedule to determine their tax liability.
a. True
b. False
ANSWER: False
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