This course covers new Tax Legislation and updated IRS tax forms
Test Results Your Score: 93%
Passing Score: 80%
You passed.
1 When calculating 2013 estimated tax payments based on the tax shown on the 2012 tax return, what percentage of the prior year's income tax liability is used for taxpayers with AGI of $150,000 or more?
100%
105%
XX110%
115%
2, What type of income is NOT subject to the net investment income tax (NIIT)?
XXIncome distribution from a traditional IRA.
Gain from sale of investment real estate.
Dividends.
Passive activity income.
3 Which statement best describes the Tax Year 2013 federal income tax return filing status options for a married same-sex couple?
Each spouse must file using the filing status they used for Tax Year 2012.
Each spouse must file single unless the spouse qualifies to file as head of household.
The couple must file using a married filing status—either separately or jointly.
XX The couple must file using a married filing status—either separately or jointly, unless one or both of the spouses qualify to file as head of household.
4 Beverly and Sandra were legally married in Massachusetts in May 2009. The couple has no dependents. Beverly and Sandra have resided together in Texas since August 2011. The state of Texas does not recognize the marriage of same-sex couples. What filing status must Beverly and Sandra use on their 2013 federal tax return(s)?
Beverly and Sandra must file separate tax returns using the single filing status.
The couple must file separate tax returns using the married filing separately filing status.
XXThe couple must file their tax return(s) using a married filing status—either separately or jointly.
Beverly and Sandra must file a joint tax return using the married filing jointly filing status.
5 Dan and Larry were legally married in Canada in August 2008. The couple have no dependents. Dan and Larry reside in New York State, which recognizes the marriage of same-sex couples, including those performed outside of New York State. Dan has filed all his federal tax returns in a timely manner, using the single filing status. Larry has not yet filed his 2012 tax return, but plans to file it when he files his 2013 tax return. Which statement best describes Larry's filing status options for Tax Year 2012?
Larry must file single because Dan filed single.
Larry must file as married filing separately because Dan already filed his 2012 return.
XX Larry may file as married filing jointly if Dan agrees to amend his 2012 return to change his filing status. Otherwise, Larry must file as married filing separately.
Dan must amend his 2012 return to change his filing status to a married filing status so that Larry can file his return using a married filing status.
6 Which of the following is a correct statement regarding the simplified option for the home office deduction?
The taxpayer must own the home.
XX The maximum deduction is $1,500 with no carryover due to gross income limitation.
The non-business percentage of mortgage interest and real estate tax deductions are claimed on Schedule A.
Once the simplified method is used for one tax year, the simplified method is required for subsequent years business-use of home computation for that property.
7 Which of the following is an incorrect statement regarding the simplified option for the home office deduction?
XX The maximum deduction is $5,000 with no carryover due to gross income limitation.
No additional amounts are claimed separately for depreciation or for operating expenses of the home.
Property taxes and home mortgage interest are deducted in full on Schedule A.
Business expenses that are unrelated to the home are fully deductible.
8 On October 28, Health and Human Services provided a hardship exemption from the tax penalty for failure to maintain minimum essential health coverage. The hardship exemption applies to which group of taxpayers?
XXTaxpayers who enroll in a health care plan through the Marketplace from February 16 through March 31, 2014.
Taxpayers who enroll in a health care plan through the Marketplace from April 1 through December 31, 2014.
Taxpayers under age 26.
Taxpayers who object to insurance for reasons of religious conscience.
9 Which form is used to compute the additional Medicare tax for higher-income taxpayers?
Form 8812
Form 8857
XXForm 8959
Form 8960
10 How much is the standard deduction for a nondependent who files as a single taxpayer?
$3,900
XX$6,100
$8,950
$12,200
11 What is the total amount for personal exemptions that can be taken on a return with a head of household filing status, an AGI of $90,000, and four dependents?
$12,200
XX$19,500
$20,500
$25,000
12 The State Conformity Chart and the State General Filing Requirements Chart is located in the:
Correct Answer: Both the State News & the References tab.
State News.
XXThe References tab.
Tax in the News.
13 Which Tax Research Center research tool publishes weekly articles that often contain brief summaries of state-related information?
The References tab.
XXTax in the News. State News.
State Tax link under the New!
Browse by Category Section.
14 Which benefit is available to homeowners in 2013?
Mortgage Insurance Premiums are deductible.
Forgiveness of qualified principal residence indebtedness is excluded.
Both A and B.
Neither A nor B. 15
15 What is the applicable exemption for estate and gift tax?
$1,000,000
$5,000,000
$5,120,000
XX$5,250,000
