,TESTBANK for Income Tax Fundamentals 2023 ,
41st Edition Gerald E. Whittenburg
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
CH 01 The Individual Income Tax Return
True / False
1. The U.S. federal tax law's sole purpose is to raise revenue.
a. True
b. False
ANSWER: False
2. A corporation is a reporting entity but not a tax-paying entity.
a. True
b. False
ANSWER: False
3. Partnership capital gains and losses are allocated separately to each of the partners.
a. True
b. False
ANSWER: True
4. Married taxpayers may double their standard deduction amount by filing separate returns.
a. True
b. False
ANSWER: False
5. 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
6. 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
7. A taxpayer with self-employment income of $600 must file a tax return.
a. True
b. False
ANSWER: True
8. 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
9. A single taxpayer, who is not a dependent on another’s return, not blind, and under age 65, with income of $11,800
must file a tax return.
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CH 01 The Individual Income Tax Return
a. True
b. False
ANSWER: False
10. 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
11. Taxpayers with self-employment income of $400 or more must file a tax return.
a. True
b. False
ANSWER: True
12. 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
13. 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
14. If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a
nephew who is not their dependent, they may use the head of household filing status.
a. True
b. False
ANSWER: False
15. The maximum official individual income tax rate for 2022 is 39.6 percent, not including the Medicare surtax on net
investment income.
a. True
b. False
ANSWER: False
16. All taxpayers may use the tax rate schedule to determine their tax liability.
a. True
b. False
ANSWER: False
17. The head of household tax rates are higher than the rates for a single taxpayer.
a. True
b. False
ANSWER: False
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
18. Most states are community property states.
a. True
b. False
ANSWER: False
19. 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
20. 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
21. A married person with a dependent child may choose to file as head of household if it reduces the taxpayer's tax
liability.
a. True
b. False
ANSWER: False
22. 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
23. 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
24. A dependent that dies during the tax year may still qualify as a dependent.
a. True
b. False
ANSWER: True
25. For 2022, the deductions for personal and dependency exemptions are $4,300 each.
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
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
the dependency exemption.
a. True
b. False
ANSWER: True
27. The two types of dependents are qualifying child or qualifying relative.
a. True
b. False
ANSWER: True
28. 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
29. Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is
higher.
a. True
b. False
ANSWER: True
30. 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
31. Taxpayers can download tax forms from the IRS Internet site.
a. True
b. False
ANSWER: True
Multiple Choice
32. Which of the following is a goal of the tax law?
a. Encouraging certain social goals such as contributions to charity
b. Supporting certain economic goals such as increasing unemployment
c. Encouraging smaller families
d. Promoting good will with other countries
ANSWER: a
33. Which one of the following provisions was passed by Congress to meet a social goal of the tax law?
a. The deduction for job hunting expenses
b. The child and dependent care credit
c. The moving expense deduction for adjusted gross income
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
d. The deduction for soil and water conservation costs available to farmers
ANSWER: b
34. Which of the following is an economic goal of the tax law?
a. Ensuring that all persons pay the same amount of tax
b. Reducing unemployment
c. Lowering the cost of adoption
d. Encouraging charitable contributions
ANSWER: b
35. In 2022, Wesley has a fairly simple tax situation with moderate wage income and a modest amount of interest income.
Wesley, age 45, wishes to use the easiest possible tax form. He may file which of the following?
a. Form 1040-EZ
b. Form 1040-SR
c. Form 1040
d. Form 1065
ANSWER: c
36. Which of the following forms may be filed by individual taxpayers?
a. Form 1040
b. Form 1041
c. Form 1065
d. Form 1120
ANSWER: a
37. Which of the following is true of partnerships?
a. They are not taxable entities.
b. They are taxed in the same manner as individuals.
c. They file tax returns on Form 1120.
d. They file tax returns on Form 1041.
ANSWER: a
38. Which of the following is correct regarding reporting and taxable entities?
a. An individual is a reporting entity but not a taxable entity.
b. A partnership is a taxable entity and a reporting entity.
c. A corporation is a reporting entity but not a taxable entity.
d. A partnership is a reporting entity but not a taxable entity.
ANSWER: d
39. In 2022, Schedule 1 of Form 1040 is used to report what?
a. Income from wages
b. Capital gains and losses
c. Withholding on wages
d. Unemployment compensation
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
ANSWER: d
40. Partnership income is reported on _____.
a. Form 1040PTR
b. Form 1120S
c. Form 1040X
d. Form 1065
ANSWER: d
41. What is reported on Schedule 2?
a. Additional income
b. Adjustments to income
c. Additional taxes
d. Itemized deductions
ANSWER: c
42. Which of the following is used to report capital gains and losses?
a. Schedule A
b. Schedule B
c. Schedule C
d. Schedule D
ANSWER: d
43. An individual is a head of household. What is this individual's 2022 standard deduction?
a. $12,950
b. $25,900
c. $19,400
d. $1,750
ANSWER: c
44. Chad and Vivian are married. For 2022, Chad earned $25,000 and Vivian earned $30,000. They have decided to file
separate returns. They have no deductions for adjusted gross income. Chad's itemized deductions are $14,200 and Vivian's
are $4,000. Assuming Chad and Vivian do not live in a community property state and Chad deducts the greater of the
standard deduction or itemized deductions, what is Chad's taxable income?
a. $10,800
b. $18,000
c. $12,050
d. $21,000
ANSWER: a
45. Kelly and Morgan have no dependents and file a joint income tax return for 2022. They have adjusted gross income
(all wages) of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Kelly and
Morgan must report on their 2022 income tax return?
a. $114,100
b. $93,600
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
c. $140,000
d. $110,000
ANSWER: d
46. Which of the following taxpayers is exempt from having to file a tax return for 2022?
a. A single taxpayer who is under age 65, with income of $13,500
b. Married taxpayers (ages 45 and 50 years), filing jointly, with income of $26,000
c. A 22-year-old student with unearned income of $2,500 who is claimed as a dependent by her parents
d. A 67-year-old surviving spouse with a dependent child and income of $18,900
ANSWER: d
47. In which of the following situations is the taxpayer excluded from having to file a 2022 income tax return?
a. When an individual has a current year income tax refund and would like to obtain it
b. When the taxpayer is a single 67-year-old with wages of $9,800
c. When the taxpayer is a 35-year-old head of household with wages of $19,900
d. When the taxpayer is a 69-year-old surviving spouse (spouse died 3 years ago) with wages of $16,500 and no
dependents
ANSWER: b
48. Which of the following factors are important in determining whether an individual is required to file an income tax
return?
a. The taxpayer's filing status and gross income
b. The taxpayer's gross income and total itemized deductions
c. The taxpayer's total itemized deductions and filing status
d. The taxpayer's total itemized deductions and number of dependents
ANSWER: a
49. Elliot and Karmen are married. For 2022, Elliot earned $35,000 and Karmen earned $40,000. They have decided to
file separate returns. They have no deductions for adjusted gross income. Karmen's itemized deductions are $15,600 so
she is going to itemize. Elliot's itemized deductions are $4,750. Assuming Elliot and Karmen do not live in a community
property state, what is Elliot's taxable income?
a. $22,050
b. $15,600
c. $30,250
d. $24,400
ANSWER: c
50. Juan, 45 years old and unmarried, contributed $1,000 monthly in 2022 to the support of his parents' household. The
parents lived alone, and their income for 2022 consisted of $500 from dividends and interest. What is Juan's filing status,
and how many dependents should he claim on his 2022 tax return?
a. Single and no dependents
b. Head of household and no dependents
c. Single and 2 dependents
d. Head of household and 2 dependents
ANSWER: d
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51. During 2022, Manfred, who is 60 years old and unmarried, provided all of the support of his elderly mother. His
mother was a resident of a home for the aged for the entire year and had no income. What is Manfred's filing status for
2022, and how many dependents should he report on his tax return?
a. Head of household and 1 dependent
b. Single and 2 dependents
c. Head of household and 2 dependents
d. Single and 1 dependent
ANSWER: a
52. Kofi is a 25-year-old full-time student at a state university. Kofi lives with his unmarried sister, Abbey, who provides
over half of his support. His only income is $4,500 of wages from a part-time job at the college bookstore. What is
Abbey's filing status for 2022?
a. Single
b. Head of household
c. Married filing separately
d. Surviving spouse
ANSWER: a
53. Roberto is a single taxpayer who has AGI of $145,000 in 2022; his taxable income is $122,000. What is his federal tax
liability for 2022?
a. $18,719.50
b. $15,213.50
c. $29,280.00
d. $23,115.50
ANSWER: d
54. Dalton is a divorced taxpayer who provides a home for their dependent child, Edward. What filing status should
Dalton indicate on their tax return?
a. Head of household
b. Married filing separately
c. Single
d. Surviving spouse
ANSWER: a
55. Iris, widowed in 2021, pays all costs related to the home in which she and her unmarried child live. Her child does not
qualify as her dependent. What is her filing status for 2022?
a. Single
b. Married filing separately
c. Head of household
d. Surviving spouse
ANSWER: a
56. Alec, whose wife died in 2020, filed a joint tax return for 2020. He did not remarry and continues to maintain his
home in which his four dependent children live. In the preparation of his tax return for 2022, Alec should file as _____.
Copyright Cengage Learning. Powered by Cognero. Page 8
41st Edition Gerald E. Whittenburg
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
CH 01 The Individual Income Tax Return
True / False
1. The U.S. federal tax law's sole purpose is to raise revenue.
a. True
b. False
ANSWER: False
2. A corporation is a reporting entity but not a tax-paying entity.
a. True
b. False
ANSWER: False
3. Partnership capital gains and losses are allocated separately to each of the partners.
a. True
b. False
ANSWER: True
4. Married taxpayers may double their standard deduction amount by filing separate returns.
a. True
b. False
ANSWER: False
5. 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
6. 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
7. A taxpayer with self-employment income of $600 must file a tax return.
a. True
b. False
ANSWER: True
8. 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
9. A single taxpayer, who is not a dependent on another’s return, not blind, and under age 65, with income of $11,800
must file a tax return.
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CH 01 The Individual Income Tax Return
a. True
b. False
ANSWER: False
10. 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
11. Taxpayers with self-employment income of $400 or more must file a tax return.
a. True
b. False
ANSWER: True
12. 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
13. 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
14. If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a
nephew who is not their dependent, they may use the head of household filing status.
a. True
b. False
ANSWER: False
15. The maximum official individual income tax rate for 2022 is 39.6 percent, not including the Medicare surtax on net
investment income.
a. True
b. False
ANSWER: False
16. All taxpayers may use the tax rate schedule to determine their tax liability.
a. True
b. False
ANSWER: False
17. The head of household tax rates are higher than the rates for a single taxpayer.
a. True
b. False
ANSWER: False
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CH 01 The Individual Income Tax Return
18. Most states are community property states.
a. True
b. False
ANSWER: False
19. 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
20. 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
21. A married person with a dependent child may choose to file as head of household if it reduces the taxpayer's tax
liability.
a. True
b. False
ANSWER: False
22. 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
23. 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
24. A dependent that dies during the tax year may still qualify as a dependent.
a. True
b. False
ANSWER: True
25. For 2022, the deductions for personal and dependency exemptions are $4,300 each.
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
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
the dependency exemption.
a. True
b. False
ANSWER: True
27. The two types of dependents are qualifying child or qualifying relative.
a. True
b. False
ANSWER: True
28. 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
29. Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is
higher.
a. True
b. False
ANSWER: True
30. 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
31. Taxpayers can download tax forms from the IRS Internet site.
a. True
b. False
ANSWER: True
Multiple Choice
32. Which of the following is a goal of the tax law?
a. Encouraging certain social goals such as contributions to charity
b. Supporting certain economic goals such as increasing unemployment
c. Encouraging smaller families
d. Promoting good will with other countries
ANSWER: a
33. Which one of the following provisions was passed by Congress to meet a social goal of the tax law?
a. The deduction for job hunting expenses
b. The child and dependent care credit
c. The moving expense deduction for adjusted gross income
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
CH 01 The Individual Income Tax Return
d. The deduction for soil and water conservation costs available to farmers
ANSWER: b
34. Which of the following is an economic goal of the tax law?
a. Ensuring that all persons pay the same amount of tax
b. Reducing unemployment
c. Lowering the cost of adoption
d. Encouraging charitable contributions
ANSWER: b
35. In 2022, Wesley has a fairly simple tax situation with moderate wage income and a modest amount of interest income.
Wesley, age 45, wishes to use the easiest possible tax form. He may file which of the following?
a. Form 1040-EZ
b. Form 1040-SR
c. Form 1040
d. Form 1065
ANSWER: c
36. Which of the following forms may be filed by individual taxpayers?
a. Form 1040
b. Form 1041
c. Form 1065
d. Form 1120
ANSWER: a
37. Which of the following is true of partnerships?
a. They are not taxable entities.
b. They are taxed in the same manner as individuals.
c. They file tax returns on Form 1120.
d. They file tax returns on Form 1041.
ANSWER: a
38. Which of the following is correct regarding reporting and taxable entities?
a. An individual is a reporting entity but not a taxable entity.
b. A partnership is a taxable entity and a reporting entity.
c. A corporation is a reporting entity but not a taxable entity.
d. A partnership is a reporting entity but not a taxable entity.
ANSWER: d
39. In 2022, Schedule 1 of Form 1040 is used to report what?
a. Income from wages
b. Capital gains and losses
c. Withholding on wages
d. Unemployment compensation
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
ANSWER: d
40. Partnership income is reported on _____.
a. Form 1040PTR
b. Form 1120S
c. Form 1040X
d. Form 1065
ANSWER: d
41. What is reported on Schedule 2?
a. Additional income
b. Adjustments to income
c. Additional taxes
d. Itemized deductions
ANSWER: c
42. Which of the following is used to report capital gains and losses?
a. Schedule A
b. Schedule B
c. Schedule C
d. Schedule D
ANSWER: d
43. An individual is a head of household. What is this individual's 2022 standard deduction?
a. $12,950
b. $25,900
c. $19,400
d. $1,750
ANSWER: c
44. Chad and Vivian are married. For 2022, Chad earned $25,000 and Vivian earned $30,000. They have decided to file
separate returns. They have no deductions for adjusted gross income. Chad's itemized deductions are $14,200 and Vivian's
are $4,000. Assuming Chad and Vivian do not live in a community property state and Chad deducts the greater of the
standard deduction or itemized deductions, what is Chad's taxable income?
a. $10,800
b. $18,000
c. $12,050
d. $21,000
ANSWER: a
45. Kelly and Morgan have no dependents and file a joint income tax return for 2022. They have adjusted gross income
(all wages) of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Kelly and
Morgan must report on their 2022 income tax return?
a. $114,100
b. $93,600
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,Name: Class: Date:
CH 01 The Individual Income Tax Return
c. $140,000
d. $110,000
ANSWER: d
46. Which of the following taxpayers is exempt from having to file a tax return for 2022?
a. A single taxpayer who is under age 65, with income of $13,500
b. Married taxpayers (ages 45 and 50 years), filing jointly, with income of $26,000
c. A 22-year-old student with unearned income of $2,500 who is claimed as a dependent by her parents
d. A 67-year-old surviving spouse with a dependent child and income of $18,900
ANSWER: d
47. In which of the following situations is the taxpayer excluded from having to file a 2022 income tax return?
a. When an individual has a current year income tax refund and would like to obtain it
b. When the taxpayer is a single 67-year-old with wages of $9,800
c. When the taxpayer is a 35-year-old head of household with wages of $19,900
d. When the taxpayer is a 69-year-old surviving spouse (spouse died 3 years ago) with wages of $16,500 and no
dependents
ANSWER: b
48. Which of the following factors are important in determining whether an individual is required to file an income tax
return?
a. The taxpayer's filing status and gross income
b. The taxpayer's gross income and total itemized deductions
c. The taxpayer's total itemized deductions and filing status
d. The taxpayer's total itemized deductions and number of dependents
ANSWER: a
49. Elliot and Karmen are married. For 2022, Elliot earned $35,000 and Karmen earned $40,000. They have decided to
file separate returns. They have no deductions for adjusted gross income. Karmen's itemized deductions are $15,600 so
she is going to itemize. Elliot's itemized deductions are $4,750. Assuming Elliot and Karmen do not live in a community
property state, what is Elliot's taxable income?
a. $22,050
b. $15,600
c. $30,250
d. $24,400
ANSWER: c
50. Juan, 45 years old and unmarried, contributed $1,000 monthly in 2022 to the support of his parents' household. The
parents lived alone, and their income for 2022 consisted of $500 from dividends and interest. What is Juan's filing status,
and how many dependents should he claim on his 2022 tax return?
a. Single and no dependents
b. Head of household and no dependents
c. Single and 2 dependents
d. Head of household and 2 dependents
ANSWER: d
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CH 01 The Individual Income Tax Return
51. During 2022, Manfred, who is 60 years old and unmarried, provided all of the support of his elderly mother. His
mother was a resident of a home for the aged for the entire year and had no income. What is Manfred's filing status for
2022, and how many dependents should he report on his tax return?
a. Head of household and 1 dependent
b. Single and 2 dependents
c. Head of household and 2 dependents
d. Single and 1 dependent
ANSWER: a
52. Kofi is a 25-year-old full-time student at a state university. Kofi lives with his unmarried sister, Abbey, who provides
over half of his support. His only income is $4,500 of wages from a part-time job at the college bookstore. What is
Abbey's filing status for 2022?
a. Single
b. Head of household
c. Married filing separately
d. Surviving spouse
ANSWER: a
53. Roberto is a single taxpayer who has AGI of $145,000 in 2022; his taxable income is $122,000. What is his federal tax
liability for 2022?
a. $18,719.50
b. $15,213.50
c. $29,280.00
d. $23,115.50
ANSWER: d
54. Dalton is a divorced taxpayer who provides a home for their dependent child, Edward. What filing status should
Dalton indicate on their tax return?
a. Head of household
b. Married filing separately
c. Single
d. Surviving spouse
ANSWER: a
55. Iris, widowed in 2021, pays all costs related to the home in which she and her unmarried child live. Her child does not
qualify as her dependent. What is her filing status for 2022?
a. Single
b. Married filing separately
c. Head of household
d. Surviving spouse
ANSWER: a
56. Alec, whose wife died in 2020, filed a joint tax return for 2020. He did not remarry and continues to maintain his
home in which his four dependent children live. In the preparation of his tax return for 2022, Alec should file as _____.
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