Final Exam
Student:
Wang, Kent SCORE:
87%PASSED
This course covers new Tax Legislation and updated IRS tax forms
Description The course covers the latest on the new Tax Legislation and Forms and qualifies for three hours of Federal Tax Law Update credit towards the 15 hour CE requirement to be eligible to work as a tax professional. Completing the Tax Update course is a great way to prepare for the upcoming season.
Assuming that a same-sex married couple resides in a state that does not recognize their marriage and they both are only required to file a state income tax return for their resident state, what is the total number of returns the same-sex married couple is required to file?
One.
They are only required to file one federal income tax return.
Two. They are required to file one federal income tax return and one state income tax return.
(XX)Three. They are required to file one federal income tax return and two state income tax returns.
Four. They are required to file two federal income tax returns and two state income tax returns
What type of IRA rollover is subject to the 12-month IRA rollover limitation?
Traditional IRA to 401(k) indirect rollover.
(XX) Traditional IRA to traditional IRA indirect rollover.
Traditional IRA to traditional IRA direct rollover.
Traditional IRA to Roth IRA indirect rollover
Emily and Anna were legally married at the time of Emily's death on March 1, 2012. Anna was named as executor of Emily's will. At that time, they were not able to use the Deceased Spousal Unused Credit. Emily's estate was $2,000,000, so she did not need to file a Form 706. If Anna wishes to use the DSUE, by when does she have to file Emily's Form 706 to elect portability?
December, 1, 2012
March, 1, 2014
December, 14, 2014
(XX) December, 31, 2014
What is the MAXIMUM criminal penalty for a single violation of FBAR rules with no other violations?
Fine of up to $250,000 OR five years in prison.
Fine of up to $250,000 AND five years in prison.
Fine of up to $500,000 OR ten years in prison.
(Wrong Answer)(XX)Fine of up to $500,000 AND ten years in prison
How are costs for improvements treated for tax purposes?
The costs are immediately expensed on the financial statements.
(XX)The costs are capitalized, then amortized over the required depreciable class life.
The costs are capitalized, then amortized over the remaining life of the asset it improves.
One-half of the costs are immediately expensed, then the remaining balance is capitalized and amortized over the required depreciable class life.
Deductible repairs and maintenance costs include which of the following under the tangible property regulations?
(XX)Removal costs.
Property acquired with an acquisition cost of $200 or less.
Non-incidental costs.
Improvements to existing property
Which of the following method changes requires completion of an application of accounting method change?
Method to adopt repairs and maintenance rules.
Method to allow for partial dispositions of assets.
Method to capitalize and depreciate certain materials and supplies.
(XX)Method to adopt repairs and maintenance rules and take a Section 481 adjustment for all prior repairs and maintenance costs that have been capitalized
Personally identifiable information, PII, can potentially be used:
(Wrong Answer)(XX)To obtain an individual's SSN.
To obtain an individuals driver's license number.
To uniquely identify, contact, or locate an individual person.
To obtain an individual's DOB
Which of the following is not among H&R Block's key components of privacy?
Client file management.
Use and disclosure consents, IRC 7216.
(XX) FBI tax crime most wanted list.
Information security
Which statement best describes the purpose of Form 1095-A?
List the individuals eligible for the advance premium tax credit and calculate their credit.
(XX)Report the individuals covered by a Marketplace policy, their enrollment premiums, SLCSP, and any advance premium tax paid.
List the individuals who are eligible for an exemption from the ACA tax penalty and claim the exemption.
Reconcile any advance premium tax credit paid with the actual premium tax credit and claim the premium tax credit
Which statement best describes the tax consequence for a taxpayer who enrolled in health care insurance through the Marketplace?
The taxpayer is in compliance with the ACA individual mandate. They will receive a Form 1095-A and complete Form 8965 to claim a tax deduction.
The taxpayer is NOT in compliance with the ACA individual mandate. They will complete Form 8962 to calculate their ACA tax penalty.
(XX)The taxpayer is in compliance with the ACA individual mandate. The taxpayer will receive Form 1095-A and complete Form 8962 to reconcile any APTC paid or to claim the PTC.
The taxpayer is NOT in compliance with the ACA individual mandate. They will complete Form 8965 to calculate a tax penalty
For 2014, itemized deductions are limited for married couples who file jointly and whose income is equal to or greater than:
$254,200
$279,650
(XX)$305,050
$500,000
For 2014, 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)$19,750
$20,500
$25,000
Form 1095-A enables taxpayers to complete which form?
Form 8692.
Form 8695.
(XX)Form 8962.
Form 8965
Form 1095-A reports all of the following, EXCEPT:
The advance premium tax credit amounts paid, if any, on behalf of the taxpayer.
(XX)The tax penalty owed by the taxpayer.
The SLCSP premium for calculation purposes.
The health insurance premiums paid by the taxpayer