Test Bank for Income Tax Fundamentals, 38th Edition, Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill All Chapters 1-12

TEST BANK
Income Tax Fundamentals 2024, 42nd Edition
by Whittenburg, Gill. Chapters 1 - 12

,TABLE OF CONTENTS
1. The Individual Income Tax Return.

2. Gross Income and Exclusions.

3. Business Income and Expenses, Part I.

4. Business Income and Expenses, Part II.

5. Itemized Deductions and Other Incentives.

6. Credits and Special Taxes.

7. Accounting Periods and Methods and Depreciation.

8. Capital Gains and Losses.

9. Withholding, Estimated Payments, and Payroll Taxes.

10. Partnership Taxation.

11. The Corporate Income Tax.

12. Tax Administration and Tax Planning.

,Chapter 1: The Individual Income Tax Return


1. A corporation is a reporting entity but not a tax-paying entity.
FALSE



2. Partnership capital gains and losses are allocated separately to each of the partners.
TRUE



3. Married taxpayers may double their standard deduction amount by filing separate returns.
FALSE



4. An item is not included in gross income unless the tax law specifies that the item is subject to
taxation.
FALSE



5. For taxpayers who do not itemize deductions, the standard deduction amount is subtracted
from the taxpayer's adjusted gross income.
TRUE



6. A taxpayer with self-employment income of $600 must file a tax return.
TRUE



7. A dependent child with earned income in excess of the available standard deduction amount
must file a tax return.
TRUE



8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750 must file
a tax return.
FALSE

, 9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files
a tax return.
FALSE



10. Taxpayers with self-employment income of $400 or more must file a tax return.
TRUE



11. If your spouse dies during the tax year and you do not remarry, you must file as single for
the year of death.
FALSE



12. Taxpayers who do not qualify for married, head of household, or qualifying widow or widower
filing status must file as single.
TRUE



13. 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 her dependent, she may use the head of household filing
status.
FALSE



14. The maximum official individual income tax rate for 2012 is 35 percent.
TRUE



15. All taxpayers may use the tax rate schedule to determine their tax liability.
FALSE



16. The head of household tax rates are higher than the rates for a single taxpayer.
FALSE



17. Most states are community property states.
FALSE