Estimated tax payments are one way the federal income tax system addresses the "certainty" criterion in evaluating tax systems

Which of the following is not an example of a graduated tax rate structure?

Congress recently approved a new, smaller budget for the IRS. What taxation concept evaluates the cost of administering our tax law?

Employers often withhold federal income taxes directly from workers' paychecks. This is an example of which principle in practice?

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo and his wife are married filing jointly in 2020, what is Leonardo and Theresa's effective tax rate for 2020? (Use tax rate schedule.)

Corporations are required to file a tax return annually regardless of their taxable income.

For fraudulent tax returns, the statute of limitations for IRS assessment is 10 years.

Because the U.S. District Court hears a broader set of cases, decisions by the U.S. District Court may be considered to have more authoritative weight than those by the U.S. Court of Federal Claims.

If Paula requests an extension to file her individual tax return in a timely manner, the latest she could file her return without a failure-to-file penalty is:

Princess, who resides in the 2nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?

If Joel earns a 9 percent after-tax rate of return, $8,000 received in two years is worth how much today?

If Julius has a 22 percent tax rate and a 10 percent after-tax rate of return, $25,000 of income in three years will cost him how much tax in today's dollars?

The constructive receipt doctrine:

  

Anna is a qualifying child of her parents. However, she was recently married. Anna and her husband filed a joint return. If they had filed separately, Anna would have owed no taxes, though her husband would have owed just $5. Because Anna herself owed no taxes, her parents can still claim her as a dependent.

Which of the following series of inequalities is generally most accurate?

  

Joanna received $60,000 compensation from her employer, the value of her stock in ABC company appreciated by $5,000 during the year (but she did not sell any of the stock), and she received $30,000 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

All of the following are for AGI deductions except:

Jamison's gross tax liability is $7,000. Jamison had $2,000 of available credits and he had $4,000 of taxes withheld by his employer. What are Jamison's taxes due (or taxes refunded) with his tax return?

Charlotte is the Lucas family's 22-year-old daughter. She is a full-time student at an out-of-state university but plans to return home when the school year ends. During the year, Charlotte earned $4,000 of income working part time. Her support totaled $30,000 for the year. Of this amount, Charlotte paid $7,000 with her own funds, her parents paid $14,000, and Charlotte's grandparents paid $9,000. Which of the following statements most accurately describes whether Charlotte's parents can claim Charlotte as a dependent?

Filing status determines all of the following except ___________

Which of the following is true regarding stock options?

Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer. At the time he started working the stock price was $11 per share. Now that the share price is $25 per share, he exercises all of the options. Two years later Bad Brad sells the stock for $27 per share. What is Bad Brad's basis in his stock for purposes of calculating the gain or loss?

Bernie is a former executive who is retired. This year Bernie received $250,000 in pension payments and $10,000 of Social Security payments. What amount must Bernie include in his gross income?

Janine's employer loaned her $5,000 this year (interest-free) to buy a used car. If the federal interest rate was 4 percent, which of the following is correct?

Shauna received a distribution from her 401(k) account this year. In which of the following situations will Shauna be subject to an early distribution penalty?

Excess business losses are carried back and then forward.

Harriet owns a second home that she rents to others. During the year, she used the second home for 10 personal days and for 200 rental days. Assume her mortgage on the second home is $300,000, and that she has no mortgage on her first home. Which of the following statements regarding the manner in which she should account for her income and/or expenses associated with the home is incorrect?

During 2020, Jacob, a 19-year-old full-time student, earned $4,500 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions during 2020 is $6,000. How much of a tax-deductible contribution can Jacob make to an IRA?

Which of the following statements regarding traditional IRAs is true?

Lisa, age 45, needed some cash so she received a $50,000 distribution from her Roth IRA (not coronavirus-related). At the time of the distribution, the balance in the Roth IRA was $200,000. Lisa established the Roth IRA 10 years ago. Over the years, she has contributed $20,000 to her account. Assume CARES Act applies. What amount of the distribution is taxable and subject to early distribution penalty?

Han is a self-employed carpenter and his wife, Christine, works full time as a grade school teacher. Han paid $525 for carpentry tools and supplies, and Christine paid $3,600 as her share of health insurance premiums (not with pretax dollars) for Han and herself in a qualified plan provided by the school district. Which of the following is a true statement?

Which of the following costs is deductible as an itemized medical expense?

Which of the following taxes will not qualify as an itemized deduction?

This year Norma, a single taxpayer, paid $11,200 of real estate taxes on her personal residence and $9,500 of state income taxes. Which of the following is true?

Which of the following is a true statement?

Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000), $4,000 of interest on her $30,000 home-equity debt, $1,000 of credit card interest, and $3,000 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,000 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2020?

The American opportunity tax credit and lifetime learning credit are available to all taxpayers regardless of their income level.

Baker is single and earned $227,000 of salary as an employee in 2020. How much should his employer have withheld from his paycheck for FICA taxes?

Which of the following represents the correct order in which credits are applied to gross tax liability (from first to last)?

Sheryl’s AGI is $250,000. Her current tax liability is $52,068. Last year, her tax liability was $48,722. She will not owe underpayment penalties if her total estimated tax payments are at least which of the following (rounded) amounts? (Assume she makes the required payments each quarter.)

The "90-day" letter gives the taxpayer the opportunity to pay a proposed IRS tax adjustment or file a petition in the U.S. District Court to contest the adjustment and hear the case.

  

George recently paid $50 to renew his driver's license. The $50 payment is considered a tax.

Manny, a single taxpayer, earns $65,200 per year in taxable income and an additional $12,020 per year in city of Boston bonds. What is Manny's current marginal tax rate for 2020?

In general, tax planners prefer to defer income. This is an example of the conversion strategy.

Paying dividends to shareholders is one effective way of shifting income from a corporation to its shareholders.

If Joel earns a 10 percent after-tax rate of return, $23,000 received in two years is worth how much today?

Assume that Lavonia's marginal tax rate is 22 percent. If a city of Tampa bond pays 7.2 percent interest, what interest rate would a corporate bond have to offer for Lavonia to be indifferent between the two bonds?

A taxpayer earning income in "cash" and not reporting it as taxable income is an example of:

Anna is a qualifying child of her parents. However, she was recently married. Anna and her husband filed a joint return. If they had filed separately, Anna would have owed no taxes, though her husband would have owed just $5. Because Anna herself owed no taxes, her parents can still claim her as a dependent.

Sally received $72,300 of compensation from her employer and she received $415 of interest from a corporate bond. What is the amount of Sally's gross income from these items?

Generally, 85 percent of Social Security benefits are included in income of high-income taxpayers.

Kevin bought 200 shares of Intel stock on January 1, 2020, for $50 per share with a brokerage fee of $100. Then, Kevin sells all 200 shares for $75 per share on December 12, 2020. The brokerage fee on the sale was $150. What is the amount of the gain/loss Kevin must report on his 2020 tax return?

Which of the following best describes distributions from a defined benefit plan?

When allocating expenses of a vacation home between personal use and rental use, the amount of depreciation expense allocated to the rental use is always the ratio of rental days over rental days plus personal-use days.

During 2020, Jacob, a 19-year-old full-time student, earned $5,200 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions during 2020 is $6,000. How much of a tax-deductible contribution can Jacob make to an IRA?

In 2020, Campbell, a single taxpayer, has $95,000 of profits (net of the deduction for self-employment taxes, the self-employed health insurance deduction, and the deduction for contributions to qualified self-employment retirement plans) from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $50,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?

The AMT exemption amount is phased out for high-income taxpayers.

Employees are not allowed to deduct FICA taxes they pay.

Baker is single and earned $226,200 of salary as an employee in 2020. How much should his employer have withheld from his paycheck for FICA taxes?

Taxes influence business decisions such as where a business should locate or how a business should be structured.,,