Name: ________________________ Chapter 14 Quiz (10 points Possible)

1.  Harry and Sally were married on December 23, 2010. Their income for the entire year is reported on a joint return. A) True B) False

2. An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions and the exemption amount.A) True B) False

3. A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income is liable for any tax assessments made by the IRS on that income. A) True B) False

4. Mr. Marshall was employed by IMP Inc. until October, when he accepted a new position with Turine Inc. Mr. Marshall earned $129,000 compensation from IMP and $36,000 compensation from Turine. Which of the following statements is false? A)  Turine must withhold Social Security tax from Mr. Marshall's $36,000 compensation.B)  Turine must withhold Medicare tax from Mr. Marshall's $36,000 compensation.C)  Mr. Marshall is not entitled to an income tax credit for excess Social Security tax withheld by his employers this year.

5. An individual who is unmarried on the last day of the tax year and maintains a home that is the principal place of abode for a qualified child would qualify for what type of filing status?A) Single C) Married filing separatelyB) Head of household D) Surviving spouse

6. What is the first step in computing an individual’s taxable income?A) Calculate adjusted gross income C) Calculate any itemized deductionsB) Calculate the number of available

exemptions D) Calculate total gross income

7. Individual taxpayers must file Form 1040 by the 15th day of the 4th month following the close of the taxable year, however they can request an extension of time to file. A) True B) False

8. An individual must pay the greater of her regular income tax or her alternative minimum tax (AMT) for the year.A) True B) False