Accounting Chapter 3--Computing the Tax 3 Copy Key Essay

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CHAPTER 3--COMPUTING THE TAX 3 copy Key
1.Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions.
FALSE
2.Under the Federal income tax formula for individuals, the determination of adjusted gross income (AGI) follows that of taxable income (TI).
FALSE
3.Under the income tax formula, a taxpayer must choose between deductions from AGI and the standard deduction.
TRUE
4.After Carolyn moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $500. The $500 is income to Carolyn.
FALSE
5.An “above the line” deduction refers to a deduction for AGI.
TRUE
6.Because they appear on page 1 of Form 1040, itemized deductions are also referred to as “page 1 deductions.”
FALSE
7.An increase in a taxpayer’s AGI will increase the amount of medical expenses that can be deducted.
FALSE
8.A decrease in a taxpayer’s AGI could decrease the amount of charitable contribution that can be claimed.
TRUE
9.The filing status of a taxpayer (e.g., single, head of household) must be identified before taxable income is determined.
TRUE
10.Lee, a citizen of Korea, is a resident of the U.S. Any rent income Lee receives from land he owns in Korea is not subject to the U.S. income tax.
FALSE
11.The additional standard deduction for age and blindness is not the same amount for single as for married taxpayers.
TRUE
12.The basic and additional standard deductions are not subject to an annual adjustment for inflation.
FALSE
13.Many taxpayers who previously itemized will start claiming the standard deduction when they purchase a home.
FALSE
14.Once they reach age 65, many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.
TRUE
15.Claude’s deductions from AGI slightly exceed the standard deduction allowed for 2012. Under these circumstances, Claude cannot claim the standard deduction.
FALSE
16.As...

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Accounting Chapter 3--Computing the Tax 3 Copy Key. Anti Essays. Retrieved October 31, 2014, from the World Wide Web: http://www.antiessays.com/free-essays/Accounting-Chapter-3-Computing-The-Tax-3-505378.html