,TESTBANK FOR Income Tax Fundamentals 2026 44th Edition Whittenburg
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,Name: Class: Date:
Chapter 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
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,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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.
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
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,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
15. The maximum official individual income tax rate for 2025 is 39.6%, 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
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 doing so reduces the taxpayer's
tax liability.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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 who dies during the tax year may still qualify as a dependent.
a. True
b. False
ANSWER: True
25. For 2025, 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 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
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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 website.
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 goodwill with other countries
ANSWER: a
33. Which of the following provisions was passed by Congress to meet a social goal of the tax law?
a. Deduction for job hunting expenses
b. Child and dependent care credit
c. Moving expense deduction for adjusted gross income
d. Deduction for soil and water conservation costs available to farmers
ANSWER: b
34. Which of the following best illustrates an economic goal of the federal income tax law?
a. Promoting equal access to education through the Lifetime Learning Credit
b. Reducing unemployment through targeted tax incentives
c. Lowering the cost of child adoption through tax credits
d. Encouraging charitable giving with itemized deduction rules
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
35. Wesley, age 45, has a fairly simple tax situation with moderate wage income and a modest amount of interest
income. Wesley 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 statements about partnerships is true?
a. Partnerships are pass-through entities that file an informational return on Form 1065.
b. Partnerships pay federal income tax at the same rates as individuals.
c. Partnerships are required to file corporate returns on Form 1120.
d. Partnerships report income on the trust and estate return, Form 1041.
ANSWER: a
38. Which of the following is true 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. 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
ANSWER: d
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,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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 2025 standard deduction?
a. $15,750
b. $31,500
c. $23,625
d. $17,300
ANSWER: c
44. Jordan and Mia are married but choose to file separate returns for 2025. Jordan earned $28,500, and Mia earned
$33,200. They do not live in a community property state and have no deductions for AGI. Jordan’s itemized
deductions total $18,200, while Mia’s total $6,500. If Jordan claims the greater of the standard deduction or itemized
deductions, what is his taxable income.
a. $10,300
b. $12,750
c. $15,750
d. $28,500
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01-The Individual Income Tax Return
45. Kelly and Morgan have no dependents and file a joint income tax return for 2025. They have adjusted gross income
(all wages) of $140,000 and itemized deductions of $34,000. What is their taxable income?
a. $105,000
b. $106,000
c. $108,500
d. $140,000
ANSWER: b
46. Which of the following taxpayers is exempt from having to file a tax return for 2025?
a. A single taxpayer who is under age 65, with income of $16,200
b. Married taxpayers (ages 45 and 50 years), filing jointly, with income of $32,800
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 $19,200
ANSWER: d
47. In which of the following situations is the taxpayer excluded from having to file a 2025 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 $23,700
d. When the taxpayer is a 69-year-old surviving spouse (spouse died 3 years ago) with wages of $17,800 and no
dependents
ANSWER: b
48. Which of the following factors are primarily used by the IRS to determine whether an individual is required to file an
income tax return?
a. The taxpayer's filing status, age, and gross income
b. The taxpayer's gross income and amount of itemized deductions
c. The taxpayer's number of dependents and amount of tax withheld
d. The taxpayer's state of residence and total credits claimed
ANSWER: a
49. Elliot and Karmen are married. For 2025, Elliot earned $35,000, and Karmen earned $40,000. They 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. $19,250
b. $20,250
c. $30,250
d. $35,000
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 8
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
,Name: Class: Date:
Chapter 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
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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.
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
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
15. The maximum official individual income tax rate for 2025 is 39.6%, 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
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 doing so reduces the taxpayer's
tax liability.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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 who dies during the tax year may still qualify as a dependent.
a. True
b. False
ANSWER: True
25. For 2025, 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 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
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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 website.
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 goodwill with other countries
ANSWER: a
33. Which of the following provisions was passed by Congress to meet a social goal of the tax law?
a. Deduction for job hunting expenses
b. Child and dependent care credit
c. Moving expense deduction for adjusted gross income
d. Deduction for soil and water conservation costs available to farmers
ANSWER: b
34. Which of the following best illustrates an economic goal of the federal income tax law?
a. Promoting equal access to education through the Lifetime Learning Credit
b. Reducing unemployment through targeted tax incentives
c. Lowering the cost of child adoption through tax credits
d. Encouraging charitable giving with itemized deduction rules
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 5
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
35. Wesley, age 45, has a fairly simple tax situation with moderate wage income and a modest amount of interest
income. Wesley 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 statements about partnerships is true?
a. Partnerships are pass-through entities that file an informational return on Form 1065.
b. Partnerships pay federal income tax at the same rates as individuals.
c. Partnerships are required to file corporate returns on Form 1120.
d. Partnerships report income on the trust and estate return, Form 1041.
ANSWER: a
38. Which of the following is true 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. 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
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01-The Individual Income Tax Return
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 2025 standard deduction?
a. $15,750
b. $31,500
c. $23,625
d. $17,300
ANSWER: c
44. Jordan and Mia are married but choose to file separate returns for 2025. Jordan earned $28,500, and Mia earned
$33,200. They do not live in a community property state and have no deductions for AGI. Jordan’s itemized
deductions total $18,200, while Mia’s total $6,500. If Jordan claims the greater of the standard deduction or itemized
deductions, what is his taxable income.
a. $10,300
b. $12,750
c. $15,750
d. $28,500
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01-The Individual Income Tax Return
45. Kelly and Morgan have no dependents and file a joint income tax return for 2025. They have adjusted gross income
(all wages) of $140,000 and itemized deductions of $34,000. What is their taxable income?
a. $105,000
b. $106,000
c. $108,500
d. $140,000
ANSWER: b
46. Which of the following taxpayers is exempt from having to file a tax return for 2025?
a. A single taxpayer who is under age 65, with income of $16,200
b. Married taxpayers (ages 45 and 50 years), filing jointly, with income of $32,800
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 $19,200
ANSWER: d
47. In which of the following situations is the taxpayer excluded from having to file a 2025 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 $23,700
d. When the taxpayer is a 69-year-old surviving spouse (spouse died 3 years ago) with wages of $17,800 and no
dependents
ANSWER: b
48. Which of the following factors are primarily used by the IRS to determine whether an individual is required to file an
income tax return?
a. The taxpayer's filing status, age, and gross income
b. The taxpayer's gross income and amount of itemized deductions
c. The taxpayer's number of dependents and amount of tax withheld
d. The taxpayer's state of residence and total credits claimed
ANSWER: a
49. Elliot and Karmen are married. For 2025, Elliot earned $35,000, and Karmen earned $40,000. They 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. $19,250
b. $20,250
c. $30,250
d. $35,000
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 8
