1. Look at the Form 1040A you prepared for Juan and Maria. What is the amount on Form 1040A, Line 24?

a. $ 5,350.
b. $ 7,850.
c. $ 10,200. 
d. $ 10,700.

2. Look at the Form 1040A you prepared for Juan and Maria. What is the amount on Form 1040A, Line 44a?

a. $ 2,866.
b. $ 3,649.
c. $ 3,329. 
d. None of the above.

3. If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year.

True False

4. You use your filing status in determining whether you are eligible to claim certain other deductions and credits.

True False

5. If more than one filing status applied to you, choose the one that will give you the highest tax.

True False

6. If on the last day of your tax year you are living together in a common law marriage that is recognized in a state where you now live or in the state where the common law marriage began. For the whole year you are considered

a. Single.
b. Married.
c. Separated.
d. Not married.

7. If your spouse is away from home, and you are filing jointly, then you should prepare the return

a. Sign it for both you and your spouse and enter "by (your name), Husband (or wife) in the spouse signature area.
b. Sign it, and send it to your spouse to sign.
c. Sign it, and enter "Away from home" in the area where your spouse signs.
d. as married filing separately.

8. If you obtain a court decree of annulment, which holds that no valid marriage ever existed,

a. you are considered married since you filed joint returns for earlier years.
b. you are considered unmarried only if you filed separate returns for earlier years.
c. you are considered unmarried even if you filed joint returns for earlier years.
d. you have to file single and adjust your returns from previous years.

9. When filing a joint return, both you and your spouse must use the same accounting period and accounting methods.

True False

10. If you choose married filing separately as your filing status, the following is reduced at income levels that are half of those for a joint return.

a. the child tax credit.
b. the retirement saving contributions credit.
c. itemized deductions and the deduction for personal exemptions.
d. All of the above.

11. Ash is unmarried. His mother, for whom he can claim an exemption, lived in an apartment by herself. She died on September 2, 2007. The cost of the upkeep of her apartment for the year until her death was $6,000. Ash paid $400 and his brother paid $2,000. Ash's brother made no other payments towards his mother's support. Ash's mother had no income. What is Ash's best filing status?

a. Single.
b. Head of household.
c. Married filing jointly.
d. married filing separately.

12. If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home to qualify for the head of household status.

True False

13. You may be eligible to file as a qualifying widow (er) with dependent child if the child who qualifies you for this filing status is born or dies  during the year. You must have provided more than half of the cost of keeping up a home that was the child's main home.

a. during the entire year.
b. during the entire part of the year he or she was alive.
c. on the day that he or she died.
d. None of the above.

14. If your spouse cannot sign the return for any reason, you can sign for your spouse

a. as long as you can duplicate her exact signature.
b. as long as she gives you verbal permission.
c. only if you are given a valid power of attorney.
d. if it is stated so in the prenuptial agreement.

15. If you file a separate return, you generally report only your own income on your individual return. You can claim an exemption for your spouse if your spouse

a. had no gross income.
b. was not the dependent of another person.
c. had gross income.
d. Both A and B are correct.

16. Once you file a joint return, you can choose to file separate returns for that year anytime after the due date of the return.

True False

17. In general, your filing status depends on whether you are considered unmarried or married. You must determine your filing status before you can determine your

a. Filing requirements.
b. Standard deduction.
c. Correct tax.
d. All of the above.

18. You can choose this filing status if you are married and both you and your spouse agree to file a joint return. You report you combined income and deduct your combined allowable expenses. You can file using this status even if one of you had no income or deductions.

a. Single.
b. Married Filing Jointly.
c. Married Filing Separately.
d. Head of Household.

19. You choose this filing status if you are married. Doing so may benefit you if want to be responsible only for your own tax or if it results in less tax.  You choose this filing status if you and your spouse do not agree on filing issues. You generally report your own income, exemptions, credits, and deductions.

a. Single.
b. Married Filing Jointly.
c. Married Filing Separately.
d. Qualifying Widow (er) with Dependent Child.

20. This is your filing status if on the last day of the year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree, and you do not qualify for any other filing status.

a. Single.
b. Married Filing Jointly.
c. Married Filing Separately.
d. Qualifying Widow (er) with Dependent Child.

21. The year of death of your spouse is the last year for which you can file using this filing status

a. Single.
b. Married Filing Jointly.
c. Married Filing Separately.
d. Qualifying Widow (er) with Dependent Child.

22. Kevin's wife died January 20, 2006, and by the end of 2006 Kevin had not remarried. He has continued during 2007, 2008 to keep up a home for himself and his child for whom he can claim an exemption.

a. He can file Married filing jointly in 2006.
b. He can file Qualifying Widow (er) with Dependent Child in 2007.
c. He can file Qualifying Widow (er) with Dependent Child in 2008.
d. All of the above.

23. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. The personal representative

a. Has three years from the due date of the return to make the change.
b. Has one year from the date the person died to make the change.
c. Has one year from the due date of the return to make the change.
d. Can sign and negotiate the decedents check when it arrives in the mail.

24. You may be able to use this filing status if you are unmarried or "considered unmarried" on the last day of the year, paid more than half the cost of keeping up a home for the year, and have a "qualifying person" live with you in the home for more than half the year, unless this person is your dependent parent they don't have to live with you.

a. Single.
b. Married Filing Jointly.
c. Married Filing Separately.
d. Head of Household.

25. You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried, or legally separated from your spouse under a divorce or separate maintenance decree. If you obtain a divorce in one year for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intended to and did remarry each other in the next tax year, you and your spouse must file

a. Single.
b. Married Filing Jointly.
c. Married Filing Separately.
d. Head of Household.

26. If you live apart from your spouse on the last day of the year, you may be able to be considered unmarried for tax purposes. The following is one of the tests you must meet to be considered unmarried for tax purposes:

a. You file separate returns.
b. You paid more than half the cost of keeping up your home for the tax year.
c. Your spouse did not live in your home during the last 6 months of the tax year.
d. Any of the above.

27. You may be eligible to file as head of household if the individual who qualifies you for this filing status is born or dies during the year. You are considered to have provided more than half of the cost of keeping  up a home for this individual

a. If that was the individuals main home for more than half  of the period during which the qualifying individual live. 
b. If the qualifying individual lived for a least 6 months.  
c. If you spent a substantial amount that would be considered more than half if the individual had lived. 
d. None of the above.

28. You and your qualifying person are considered to live together even if one or both of you are temporarily absent from  your home due to special circumstances such as

a. Illness.
b. Education, business or vacation.
c. Military service.
d. Any of the above

29. You can change your filing status by filing an amended return using Form 1040X. If you or your spouse  (or both of you) file a separate return (married filing separately, single, or head of household), you generally can change to a joint return

a. Any time within 10 years from the due date.
b. Any time within 3 years from the due date of the separate return or returns.
c. Any time before the due date of the return.
d. Any time within the 2 years from the time filed. 

30. To qualify for Head of Household filing status, you include in the cost of upkeep expenses such as

a. Rent, mortgage interest, insurance and real estate taxes.
b. Clothing, education, and medical treatment.
c. The cost of life insurance.
d. The cost of transportation.

31. Look at the Form 540A you prepared for Juan and Maria. What is the amount on Form 540A, Line 18?

a. $ 3,516.
b. $ 7,032.
c. $ 10,700. 
d. $ 5,350.

32. Look at the Form 540A you prepared for Juan and Maria. What is the amount on Form 540A, Line 66?

a. $ 430.
b. $ 10.
c. $ 20. 
d. $ -0-.

33. For California, you are considered single if

a. you were never married or an RDP.
b. you were divorced under a final decree of divorce, legally separated under a final decree of legal separation.
c. you terminated your registered domestic partnership.
d. Any of the above.

34. For California, head of household if for unmarried individuals and certain married individuals or RDPs living apart who provide a home for a specified relative. Which of the following disqualifies you to use the head of household filing status.

a. you paid more than half the cost of keeping up your home for the year in 2007.
b. you were a nonresident alien during 2007.
c. for more than half of the year, your home was the main home for you and your qualified relative.
d. you were unmarried or considered unmarried.

35. For California, you may be able to file as head of household if your child lived with you and you lived with your spouse/RDP during the entire last six months of 2007.

True False

36. Use the same filing status for California that you used for your federal income tax return,

a. unless you itemize your deductions.
b. unless you meet the requirements to be considered not in a domestic partnership.
c. unless you are an RDP.
d. unless you are an active member of the United States armed forces.

37. Beginning in 2005 (conformity with Federal), for a child to qualify as your foster child for head of household purpose, the child must 

a. Be placed with you by an authorized placement agency.
b. Be placed with you by an order of a court.
c. Have lived with you all year to be your qualifying child.
d. Both a and b are correct.

38. You must use the same filing status for California that you used for your federal income tax return unless in cases when a spouse is a member of the Armed forces or a nonresident for the entire year and no income from California source. According to federal law, if you are living together in a common law marriage that is recognized in the state where you now live or in the state where the common law marriage began you are considered married for tax purposes. You are considered married for California purposes if

a. You were married as of December 31, 2007, even if you did not live with your spouse at the end of 2007.
b. Your spouse died in 2007 and you did not remarry in 2007 or spouse died in 2008 before you filed.
c. you spouse died in 2008 before you file a 2007 return.
d. Any of the above.

39. You normally must use the same filing status for California that you used for your federal income tax return. However, if you filed a joint return for federal you may file separately if either spouse was:

a. An active member of the United State armed forces or any auxiliary military branch during 2007.
b. Was in the process of filing for divorce.
c. Unable to be found and you had good reason to believe she was deceased. 
d. All of the above.

40. If you file a joint return for federal, you may file separately for California if either spouse was a nonresident for the entire year and had no income from California sources during 2007. However, if the spouse earning the California source income is domiciled in a community property state, community income will be split equally between the spouses. Therefore, they will not qualify for the nonresident spouse exception because

a. Both spouses were domiciled out of California.
b. Both spouses are considered to not have California taxable income.
c. Both spouses will have California source income.
d. You have a federal requirement to use the same filing status for California that you do for Federal.