Income Tax Fundamentals 2013, Test Bank

1. A corporation is a reporting entity but not a tax-paying entity.

 

a. True

*

b. False

  

2. Partnership capital gains and losses are allocated separately to each of the partners.

 

*a. True

b. False  

3. Married taxpayers may double their standard deduction amount by filing separate returns.

 a. True

*b. False

  

4. An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

 a. True*b. False  

5. For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer’s adjusted gross income.

 *a. Trueb. False  

6. A taxpayer with self-employment income of $600 must file a tax return.

 *a. Trueb. False  

7. A dependent child with earned income in excess of the available standard deduction amount must file a tax return.

 *a. Trueb. False  

8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750 must file a tax return.

 a. True*b. False  

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