1040x/Soi Refresher(Tax Payers) Quiz

1. Which two tax filing statuses share the same standard deduction?

Single and MFS

MFJ and HOH

HOH and Single

MFS and HOH

The correct answer is Single and MFS. Both the Single and MFS (Married Filing Separately) tax filing statuses share the same standard deduction. This means that individuals who file their taxes as Single or as Married Filing Separately can claim the same amount as a standard deduction when calculating their taxable income.

Explanation

The correct answer is Single and MFS. Both the Single and MFS (Married Filing Separately) tax filing statuses share the same standard deduction. This means that individuals who file their taxes as Single or as Married Filing Separately can claim the same amount as a standard deduction when calculating their taxable income.

2. True or False: On a dependent student's taxes, the thing that determines whether a dependent claims a standard deduction or not is whether someone else claimed the student on their taxes or not.

True

False

The statement is true because the eligibility for claiming a standard deduction as a dependent is determined by whether someone else claimed the student on their taxes or not. If someone else claims the student as a dependent, then the student cannot claim a standard deduction on their own taxes.

Explanation

The statement is true because the eligibility for claiming a standard deduction as a dependent is determined by whether someone else claimed the student on their taxes or not. If someone else claims the student as a dependent, then the student cannot claim a standard deduction on their own taxes.

3. True or False: There is more than one place where changes in exemptions can be viewed on the 1040X.

True

False

There is more than one place where changes in exemptions can be viewed on the 1040X.

Explanation

There is more than one place where changes in exemptions can be viewed on the 1040X.

4. True or False: Julia filed her 2013 taxes as MFJ, but separated from her spouse prior to completing the 14/15 FAFSA. Assuming Julia is still separated and has no other conflicting information, we should complete a Separation of Income (SOI) for Julia.

True

False

If Julia filed her 2013 taxes as MFJ (Married Filing Jointly) but separated from her spouse prior to completing the 14/15 FAFSA, it indicates that she is no longer living with her spouse and they have separate financial situations. In this case, completing a Separation of Income (SOI) for Julia is necessary to accurately assess her financial need for financial aid. This form will help determine her individual income and assets, separate from her spouse's, which is important for calculating her eligibility for financial assistance.

Explanation

If Julia filed her 2013 taxes as MFJ (Married Filing Jointly) but separated from her spouse prior to completing the 14/15 FAFSA, it indicates that she is no longer living with her spouse and they have separate financial situations. In this case, completing a Separation of Income (SOI) for Julia is necessary to accurately assess her financial need for financial aid. This form will help determine her individual income and assets, separate from her spouse's, which is important for calculating her eligibility for financial assistance.

5. If the filing status of an independent student changes from HOH to MFS on the 1040X, and the student is claiming the standard deduction:

ONLY Line 2 amounts on the 1040X will change

ONLY Line 3 amounts on the 1040X will change

Various line amounts on the 1040X can potentially change with the filing status change.

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Explanation

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6. Which is true about taxpayers that file MFS?

MFS tax filers can claim education credits.

MFS tax filers can claim EIC (Earned Income Credit).

MFS tax filers can claim exemptions, if they have them.

MFS tax filers can claim exemptions, if they have them. This means that if taxpayers who file as married filing separately (MFS) have exemptions, they are eligible to claim them on their tax returns. However, this answer does not imply that MFS tax filers can claim education credits or EIC.

Explanation

MFS tax filers can claim exemptions, if they have them. This means that if taxpayers who file as married filing separately (MFS) have exemptions, they are eligible to claim them on their tax returns. However, this answer does not imply that MFS tax filers can claim education credits or EIC.

7. For SOI's, I should divide the following in half:

Wages, Salaries, Tips, etc.

Taxes Paid

Anything that can be attributed to only 1 of the taxpayers that filed jointly.

None of the above

The correct answer is "None of the above." This means that for SOI's (Statement of Information), there is no need to divide any of the mentioned items in half. This suggests that the items listed (Wages, Salaries, Tips, etc., Taxes Paid, Anything that can be attributed to only 1 of the taxpayers that filed jointly) do not need to be divided equally between the taxpayers filing jointly.

Explanation

The correct answer is "None of the above." This means that for SOI's (Statement of Information), there is no need to divide any of the mentioned items in half. This suggests that the items listed (Wages, Salaries, Tips, etc., Taxes Paid, Anything that can be attributed to only 1 of the taxpayers that filed jointly) do not need to be divided equally between the taxpayers filing jointly.

8. If student and spouse both file Married Filing Separately, both parties MUST:

Claim different deduction types (e.g. student claims itemized deductions, spouse standard deductions).

Claim the same deduction type (e.g. both standard deductions or both itemized deductions).

Amend to a MFJ status, especially if they're still married.

Both options 2 and 3 are correct.

If both the student and spouse file Married Filing Separately, they must claim the same deduction type. This means that both parties have to either claim the standard deduction or itemized deductions. They cannot choose different deduction types, such as one claiming standard deduction and the other claiming itemized deductions.

Explanation

If both the student and spouse file Married Filing Separately, they must claim the same deduction type. This means that both parties have to either claim the standard deduction or itemized deductions. They cannot choose different deduction types, such as one claiming standard deduction and the other claiming itemized deductions.

9. The only income on the 2013 tax form is from business income. If only the student has business income on the 2013 tax form, then on the SOI form, the self-employment tax:

Should be divided in half on the SOI form.

Should be given to the student in full on the SOI form.

Should not be on the SOI form at all.

The self-employment tax should be given to the student in full on the SOI form because the only income on the 2013 tax form is from business income. Since the student is the only one with business income, they are responsible for paying the self-employment tax in its entirety. Therefore, the full amount of the self-employment tax should be included on the SOI form.

Explanation

The self-employment tax should be given to the student in full on the SOI form because the only income on the 2013 tax form is from business income. Since the student is the only one with business income, they are responsible for paying the self-employment tax in its entirety. Therefore, the full amount of the self-employment tax should be included on the SOI form.

10. True or False: Both the dependent student and parent can claim the student on their tax forms in the same tax year.

True

False

False. Both the dependent student and parent cannot claim the student on their tax forms in the same tax year. According to IRS rules, only one person can claim a dependent on their tax return, either the student themselves or the parent who provides more than half of their financial support.

Explanation

False. Both the dependent student and parent cannot claim the student on their tax forms in the same tax year. According to IRS rules, only one person can claim a dependent on their tax return, either the student themselves or the parent who provides more than half of their financial support.