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Couldn't confirm presence of Flash 8 or higher because JavaScript was disabled.Get FlashI really do have Flash installed.ul{margin-top:0px;margin-bottom:0px;list-style-type:none;padding-left:20px;}1. Look at the Form 1040 you prepared for Rodolfo and Anna Ramirez. What is the amount on Form 1040, Line 38?

[ ] a. A. $ 32,143.

[ ] b. B. $ 19,059.

[ ] c. C. $ 13,084.

[ ] d. D. $ 1,233.

2. Look at the Form 1040 you prepared. What is the amount on Form 1040, Line 40?

[ ] a. A. $ 32,143.

[ ] b. B. $ 19,059.

[ ] c. C. $ 13,084.

[ ] d. D. $ 13,250.

3. Look at the Form 1040 you prepared. What is the amount on Form 1040, Line 73a?

[ ] a. A. $ 1,253.

[ ] b. B. $ 1,228.

[ ] c. C. $ 1,273.

[ ] d. D. $ 1,233.

4. You may benefit from itemizing your deductions on Schedule A (Form 1040) if you had large uninsured casualty or theft losses.

[ ] a. True

[ ] b. False

5. The standard deduction for most taxpayers who do not itemize their deductions on Schedule A of Form 1040 is higher is 2008 than it was in 2007.

[ ] a. True

[ ] b. False

6. Some of your itemized deductions may be limited if your adjusted gross income (AGI) is more than

[ ] a. A. $ 117,300 ($64,000 MFS).

[ ] b. B. $ 156,400 ($75,900 MFS).

[ ] c. C. $ 159,950 ($79,975 MFS).

[ ] d. D. $ 195,500 ($97,900 MFS).

7. You must determine your filing status before you can determine your filing requirements,

[ ] a. A. And correct exemptions.

[ ] b. B. And health insurance deduction.

[ ] c. C. Standard deduction and correct tax.

[ ] d. D. And itemized deductions.

8. Both you and your spouse must include all of your income, exemptions, and deductions on your return. In some cases, one spouse may be relieved of joint liability for tax, interest, and penalties on a joint return. The type of relief available is

[ ] a. A. Innocent spouse relief.

[ ] b. B. Separation of liability or equitable relief.

[ ] c. C. Relief from liability arising from community property law.

[ ] d. D. All of the above.

9. Larry, 46, and Donna, 33, are filing a joint return for 2008. Neither is blind. They decide not to itemize their deductions. Their standard deduction is

[ ] a. A. $ 5,450.

[ ] b. B. $ 10,900.

[ ] c. C. $ 10,700.

[ ] d. D. $ 3,400.

10. Stanley, 48, and Rosalind, 39, are filing a joint return for tax year 2008. Stanley is blind at the end of 2008. Their standard deduction is

[ ] a. A. $ 5,450.

[ ] b. B. $ 11,750.

[ ] c. C. $ 11,950.

[ ] d. D. $ 7,850.

11. If you elect to deduct state and local general sales taxes, you must check box b on line 5 of Schedule A (Form 1040). To figure your deduction, you can use

[ ] a. A. Your actual expenses.

[ ] b. B. The optional sales tax tables.

[ ] c. C. The percentages at the end of Schedule A.

[ ] d. D. Both A or B are correct.

12. Sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate.

[ ] a. True

[ ] b. False

13. If you checked the "yes" box and your local general sales tax rate changed during 2008, figure the rate to enter on line 3 by

[ ] a. A. Adding all the rates that were in effect for the whole year.

[ ] b. B. Multiplying the last tax rate that was in effect by a fraction.

[ ] c. C. Multiplying each tax rate for the period it was in effect by a fraction.

[ ] d. D. Dividing each tax rate for the period it was in effect by the total number of days in the year (365 days).

14. In your calculation of actual state and local general sales tax you include sales taxes paid on items used in your trade or business.

[ ] a. True

[ ] b. False

15. Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deductions

[ ] a. True

[ ] b. False

16. If you itemize, you can deduct a part of your medical and dental expenses and un-reimbursed employee business expenses.

[ ] a. True

[ ] b. False

17. Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. A dollar amount that depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer and reduces the amount of income on which you are taxed is

[ ] a. A. A standard deduction.

[ ] b. B. An itemized deduction.

[ ] c. C. A credit.

[ ] d. D. A general deduction.

18. If you do not itemize deductions, you are entitled to a higher standard deduction if you are 65 or older at the end of the year. You are considered 65 on the day before your 65th birthday. Therefore, you can take a higher standard deduction for 2008 if you were born before

[ ] a. A. January 2, 1943.

[ ] b. B. January 2, 1944.

[ ] c. C. January 2, 1945.

[ ] d. D. January 2, 1949.

19. The standard deduction for an individual for whom an exemption can be claimed on another person's tax return is generally limited to

[ ] a. A. $900.

[ ] b. B. The individual's earned income for the year plus $300 (but not more than the regular standard deduction amount).

[ ] c. C. $5,450.

[ ] d. D. Either A or B.

20. Marvin is married to Clara and for 2008, due to some marital problems, they will file married filing separate. Clara will itemize her deductions of $11,000 because she had qualifying car expenses. Marvin wants to use the standard deduction on his return, because his total itemized deductions amount is only $4,100 for 2008 and it is less than the standard deduction. Since Clara will itemize her deductions

[ ] a. A. Marvin has to use the standard deduction amount of $5,450.

[ ] b. B. Marvin also has to itemize his deductions using the $4,100 amount.

[ ] c. C. Marvin can use his $5,450 standard deduction amount.

[ ] d. D. Marvin should not file a return.

21. Lucy will itemize her deductions for tax year 2008. She was single for all of 2008. Her adjusted gross income (Form 1040 line 38) was $150,000. Her total itemized deductions are $11,978 of which are for the following amounts from federal Schedule A: line 5 $668.00, line 6 $950, line 8 $500, and line 14 $9,860. What are her total itemized deductions allowed for Federal?

[ ] a. A. $11,978.

[ ] b. B. $11,313.

[ ] c. C. $11,856.

[ ] d. D. $10,943.

22. You may be subject to a limit on some of your itemized deductions if your adjusted gross income (AGI) is more than

[ ] a. A. $100,000 ($50,000 if you are married filing separately).

[ ] b. B. $80,000 ($40,000 if you are married filing separately).

[ ] c. C. $159,950 ($79,975 if you are married filing separately).

[ ] d. D. $156,400 ($78,200 if married filing separately).

23. What is the Federal standard deduction amount for a dependent who earned $4,000 from her job?

[ ] a. A. $4,300.

[ ] b. B. $900.

[ ] c. C. $4,000.

[ ] d. D. $5,450.

24. Joseph, a 22-year-old full-time college student, is claimed on his parents' 2008 tax return. Joseph has $6,000 of wage income. He has no itemized deductions. What is Joseph's standard deduction amount for 2008?

[ ] a. A. $5,450.

[ ] b. B. $6,300.

[ ] c. C. $6,000.

[ ] d. D. $900.

25. You should itemize deductions if your total deductions are more than the standard deduction amount. Another reason why you should itemize your deductions is if you don't qualify for the standard deduction. Your standard deduction is zero if

[ ] a. A. You are filing a tax return for a short tax year because of a change in your annual accounting period.

[ ] b. B. You are a nonresident or dual-status alien during the year.

[ ] c. C. You are married, filing a separate return, and your spouse itemizes her deductions.

[ ] d. D. Any of the above.

26. Capers is a single woman, age 26. She will itemized her deductions for tax year 2008. Her total adjusted gross income was $187,300. Her total itemized deductions are $23,923. The following amounts are from Schedule A: line 4 $7,200, line 5 $668, line 6 $750, line 8 $465, line 10 $9,800, line 14 $3,200, line 15 $13,000, line 19 $1,500 and line 27 $340. What are her total itemized deductions allowed for federal?

[ ] a. A. $23,923.

[ ] b. B. $23,649.

[ ] c. C. $36,923.

[ ] d. D. $ -0-.

27. You many want to elect to itemize for state tax or other purposes. You may want to do this, for example, if the tax benefit of being able to itemize your deductions on your state tax return is greater that the tax benefit you lose on your federal return by not taking the standard deduction. To make this election, you

[ ] a. A. Can call the IRS and let them know of your intentions.

[ ] b. B. Write a letter to the IRS.

[ ] c. C. Must check the box on line 30 of Schedule A.

[ ] d. D. Just do the return like that, you don't have to let them know.

28. If you do not itemize your deductions and later find that you should have itemized, or if you itemize your deductions and later find you should not have, you

[ ] a. A. Can call the IRS and let them know that you changed your mind.

[ ] b. B. Can change your return by filing Form 1040X.

[ ] c. C. Must check the box on line 29 of Schedule A.

[ ] d. D. Just do another return, they will know that this return is a fix-up.

29. Bill and Terry are filing a joint return for 2008, Both are over 65. Neither is blind. If they do not itemize deductions, their standard deductions is

[ ] a. A. $10,900.

[ ] b. B. $13,000.

[ ] c. C. $11,950.

[ ] d. D. $7,300.

30. Toby, age 25, is a single man. He will itemize his deductions for tax year 2007. His adjusted gross income was $199,000 (Form 1040, line 38). He takes care of his nephew and provided all the support for him and meets all the tests to qualify for the head of household filing status. His total itemized deductions are $27,591 and they are the following amounts from federal Schedule A: line 5 $1,221.00, line 6 $950, line 8 $500, line 10 $10,000,line 13 $450, line 14 $10,450, line 19 $3,000, and line 27 $1,020. What are his total itemize deductions allowed for federal?

[ ] a. A. $27,591.

[ ] b. B. $26,739.

[ ] c. C. $17,141.

[ ] d. D. $ -0-.