1.How much can Parker and Charlotte claim as qualified lodging expenses?
a. $332
b. $166
XXXc. $83
d. $0
2. How many miles can Parker and Charlotte claim as qualified moving expense? __926____.
3. Parker and Charlotte can claim two days of food expenses as a qualified moving expense.
a. True
XXXb. False
4. Charlotte’s May trip to locate a rental house is a qualified moving expense.
a. True
XXX b. False
5.
5. Parker and Charlotte's net financial gain from the move does not need to be reported on their tax return. yes (INCORRECT)
Parker and Charlotte’s net financial profit from the move will be reported on a Form W-2.
a. True
XXXb. False
6.Since Emmett was deployed all of 2015, Emmett and Veronica ask what filing status they should use.What is your response?
a. Veronica and Emmett can each file as Head of Household because they have two children.
b. Veronica and Emmett can each choose to file as Single, if they want.
c. Veronica can file as Head of Household because Emmett was deployed all year and had no taxable income.
XXX d. Veronica and Emmett can file Married Filing Jointly because they will get a larger refund than if they filed Married Filing Separately.
7.The amount of taxable wages that will be reported on the Russells’ Form 1040, line 7 is $__9300_____.
8. The Russells could include combat pay as earned income for purposes of calculating EIC, if it results in a higher credit.
XXXa. True
b. False
9.The couple did not file their 2014 tax return because Emmett was deployed. It may take them a while to locate all their prior year records.Emmett and Veronica want to know how long they have to file their 2014 tax return. You tell them:
a. Because Veronica was in the U.S.during 2014, their 2014 return was due on April 15, 2015. They will be penalized for filing late.
b. Their 2014 return is due on April 18, 2016 because all unfiled returns are due on the next tax filing deadline after returning from a combat zone.
c. Because Emmett is serving in a combat zone, they are not required to file.
XXX d. Their 2014 return is due November 12, 2016 (180 days from Emmett’s last day in the combat zone, plus the 105 days of the 2015 filing season that remained when Emmett entered the combat zone).
10.What is the correct amount of wages reported on Form 1040, line 7? $_32800_____.
11. How is Madeline’s rental real estate income reported on the joint tax return?
a. Rental income is reported on Schedule E and rental expenses are reported on Schedule A.
XXX b. Rental income and expenses are reported on Schedule E.
c. Madeline’s rental income should not be reported on their joint return.
d. Net rental expenses are reported on Form 1040, Line 21.
12. What are Madeline’s total deductible rental expenses?
a. $3,010
b. $4,510
XXXc. $4,910
d. $5,010
13.Which of the following amounts are not included when calculating Madeline’s adjustment for unreimbursed employee business expenses?
a. $175 for uniforms
XXX b. $367 for meals (INCORRECT)
c. $1,494 for lodging
d. $2,415 for mileage
14. Where should Madeline report her unreimbursed employee business expenses?
a. As an itemized deduction on Schedule A
b. As a business expense on Schedule C-EZ
XXX c. As an adjustment to income on Form 1040, Line 24 from Form 2106 or 2106- EZ
d. As a rental expense on Schedule E
15. What is the total federal income tax withheld on Form 1040, page 2?
a. $532
b. $2,540
c. $3,072
XXX d. $4,272