Comprehensive Test No. 9

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Lojones
L
Lojones
Community Contributor
Quizzes Created: 5 | Total Attempts: 75
| Attempts: 25
SettingsSettings
Please wait...
  • 1/20 Questions

    CHECK ALL THAT APPLY: What is a "standard deduction"?

    • The standard deduction is an amount by which certain taxpayers are able to reduce their adjusted gross income if they do not itemize their deductions.
    • The standard deduction is a benefit that eliminates the need for many taxpayers to itemize actual deductions on Schedule A.
    • The standard deduction is a dollar amount that reduces your taxable income.
    • ALL OF THE ABOVE.
Please wait...
About This Quiz

COMPREHENSIVE TEST NO. 9 assesses understanding of standard deductions, eligibility criteria, and itemization in tax filing. It covers scenarios affecting deductions, decision-making for itemizing, and rules for specific tax years, enhancing tax filing proficiency.

Comprehensive Test No. 9 - Quiz

Quiz Preview

  • 2. 

    True or False: I borrow $18,782 against the equity in my home in 2014. I used all of the money to have an in ground pool installed in my back yard. I can deduct the interest paid on this loan as fully deductible mortgage interest.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17; Page 153

    Rate this question:

  • 3. 

    Yes or No: Might a cash method taxpayer who made an improvement to his/her main home during 2014, and who paid traditionally-charged points on the loan obtained to finance it, be able to deduct in full the amount of the points paid for the year paid - namely 2014, if the loan is secured by the main home?

    • YES

    • NO

    Correct Answer
    A. YES
    Explanation
    Publication 17; Page 155

    Rate this question:

  • 4. 

    True or False: For tax year 2014 a taxpayer cannot deduct mortgage interest paid to an individual that was not reported to him/her on Form 1098, Mortgage Interest Statement.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Publication 17; Page 159

    Rate this question:

  • 5. 

    Check the statement(s) below that correctly describe a "CHARITABLE CONTRIBUTION".

    • A charitable contribution is a donation or gift to a qualified organization.

    • A charitable contribution is voluntarily made.

    • A charitable contribution is a donation or gift made for the use of a qualified organization.

    • A charitable contribution is a deduction for the value of assets given to a qualifying organization during an accounting period.

    • A charitable contribution is a gift made to a qualified organization without getting or expecting to get anything of equal value in return.

    • ALL OF THE ABOVE.

    Correct Answer
    A. ALL OF THE ABOVE.
    Explanation
    Publication 17; Page 160; Glossary in Study Guide

    Rate this question:

  • 6. 

    Not considering any specific situations, what is the maximum charitable contribution deduction for a taxpayer for 2014?

    • 50% of AGI

    • 30% of AGI

    • 20% of AGI

    • 10% of AGI

    Correct Answer
    A. 50% of AGI
    Explanation
    Publication 17; Page 166

    Rate this question:

  • 7. 

    True or False: A taxpayer filing a joint return with his/her spouse is entitled to a higher standard deduction if he/she is age 65 or older or blind, and, an even higher standard deduction if his/her spouse is age 65 or older or blind and they do not itemize deductions.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17; Page 139

    Rate this question:

  • 8. 

    What form must be used to file a 2014 federal income tax return if a taxpayer wants to deduct any of his/her charitable contributions?

    • Form 1040-EZ

    • Form 1040-A

    • Form 1040

    Correct Answer
    A. Form 1040
    Explanation
    Publication 17; Page 160

    Rate this question:

  • 9. 

    Yes or No: Might a cash method taxpayer who made an improvement to his/her second home during 2014, and who paid traditionally-charged points on the loan obtained to finance it, be able to deduct in full the amount of the points paid for the year paid - namely 2014, if the loan is secured by the second home?

    • YES

    • NO

    Correct Answer
    A. NO
    Explanation
    Publication 17; Page 155

    Rate this question:

  • 10. 

    Sometimes a taxpayer may not be eligible for the standard deduction. Check the situation(s) below wherein a taxpayer's standard deduction would be "zero".

    • You are a nonresident or dual-status alien during the year.

    • Your filing status is married filing separately and your spouse itemizes deductions on his/her return.

    • An exemption for you can be claimed on another person's tax return.

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

    • ALL OF THE ABOVE.

    Correct Answer(s)
    A. You are a nonresident or dual-status alien during the year.
    A. Your filing status is married filing separately and your spouse itemizes deductions on his/her return.
    A. You are filing a return for a short tax year because of a change in your annual accounting period.
    Explanation
    Publication 17; Page 139

    Rate this question:

  • 11. 

    CHECK ALL THAT APPLY: If you are entitled to a standard deduction, why should you choose to itemize your deductions?

    • You should itemize your deductions if you paid large amounts of reimbursed medical and dental expenses during the year.

    • You should itemize your deductions if the amount of the standard deduction you an claim is limited.

    • You should itemize your deductions if your total itemized deductions is more than the standard deduction you are otherwise entitled to.

    • You should itemize your deductions if you do not qualify for the standard deduction.

    Correct Answer(s)
    A. You should itemize your deductions if the amount of the standard deduction you an claim is limited.
    A. You should itemize your deductions if your total itemized deductions is more than the standard deduction you are otherwise entitled to.
    A. You should itemize your deductions if you do not qualify for the standard deduction.
    Explanation
    Publication 17; Page 140

    Rate this question:

  • 12. 

    True or False: For tax year 2014 there is a limit on certain itemized deductions if a taxpayer's adjusted gross income (AGI) is more than $254,200 if single ($279, 650 or more if head of household, more than $305,050 if married filing jointly or qualifying widow(er), or $152,525 or more if married filing separately.  

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Publication 17; Page 140-Caution in third column

    Rate this question:

  • 13. 

    For 2014, if you use your car to do volunteer work for a qualified organization and you don't want to figure the actual cost of operating your vehicle, what amount may you deduct on your return for the standard mileage rate for this volunteer work?

    • 23 1/2 cents per mile

    • 56 cents per mile

    • 14 cents per mile

    • 22 cents per mile

    Correct Answer
    A. 14 cents per mile
    Explanation
    Publication 17; Page 162

    Rate this question:

  • 14. 

    True or False: If someone pays you mortgage interest of $600 or more (including certain points), they should send you Form 1098, Mortgage Interest Statement.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Publication 17; Page 157

    Rate this question:

  • 15. 

    True or False: A taxpayer has a son or daughter that he /she will claim as a dependent on his/her tax return. The taxpayer is not married and will not file a joint return. The taxpayer will be entitled to higher standard deduction if the dependent is age 65 or older or blind and the taxpayer does not itemize deductions.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Publication 17; Page 140

    Rate this question:

  • 16. 

    Interest is the amount you pay for the use of borrowed money. Of the different types of interest listed below, choose the item(s) that could be deducted as itemized deductions on Schedule A (Form 1040).

    • Home Mortgage Interest

    • Interest paid on loans used for personal purposes

    • Investment Interest

    • Student Loan Interest

    • Points

    • Mortgage Insurance Premiums

    Correct Answer(s)
    A. Home Mortgage Interest
    A. Investment Interest
    A. Points
    A. Mortgage Insurance Premiums
    Explanation
    Publication 17; Pages 152-159; Instructions for Schedule A

    Rate this question:

  • 17. 

    Home mortgage interest is generally any interest you pay on a loan secured by your main home or second home. Check the item(s) below that could be deducted as home mortgage interest on Schedule A of Form 1040.

    • Notary Fees

    • Points paid in connection with a loan secured by a second home

    • Qualified Mortgage Insurance Premiums

    • Prepaid Interest

    • Late Payment Penalty

    • Annual rental payments on redeemable ground rents

    • Mortgage Prepayment Penalty

    • Mortgage Interest Credit

    Correct Answer(s)
    A. Qualified Mortgage Insurance Premiums
    A. Late Payment Penalty
    A. Annual rental payments on redeemable ground rents
    A. Mortgage Prepayment Penalty
    Explanation
    Publication 17; Page 153

    Rate this question:

  • 18. 

    Check the medical and dental expenses below that would be includible in figuring a taxpayer's medical and dental expense deduction for tax year 2014.

    • Prescription Medication and insulin

    • Expenses of an organ donor

    • Medical insurance premiums for an employer-sponsored health insurance plan when the premiums are included in box 1 of your Form W-2.

    • Artificial limbs

    • Premiums for a life insurance policy

    • Fees for nursing services

    • Toothpaste and other toiletries purchased at a drug store

    • Eyeglasses and contact lenses

    • Funeral expenses for deceased spouse

    • Insurance reimbursements

    Correct Answer(s)
    A. Prescription Medication and insulin
    A. Expenses of an organ donor
    A. Medical insurance premiums for an employer-sponsored health insurance plan when the premiums are included in box 1 of your Form W-2.
    A. Artificial limbs
    A. Fees for nursing services
    A. Eyeglasses and contact lenses
    Explanation
    Publication 17; Pages 144-146

    Rate this question:

  • 19. 

    Check the tax(s) below that could be deducted on Schedule A (Form 1040) it the taxpayer were able to itemize deductions.

    • State & Local Income Taxes

    • State & Local General Sales Taxes

    • Inheritance Taxes

    • Real Estate Taxes

    • Federal Income Taxes

    • Gift & Estate Taxes

    • Foreign Income Taxes

    • Personal Property Taxes

    Correct Answer(s)
    A. State & Local Income Taxes
    A. State & Local General Sales Taxes
    A. Real Estate Taxes
    A. Foreign Income Taxes
    A. Personal Property Taxes
    Explanation
    Publication 17; Pages 148-152; Instructions for Schedule A

    Rate this question:

  • 20. 

    "Points" are certain charges paid or treated as paid by a borrower to obtain a home mortgage, or certain charges paid by the home seller to the lender to arrange financing for the buyer. Check the item(s) below that could be considered points if paid in connection with obtaining a home mortgage.

    • Loan Origination Fees

    • Loan Discount

    • Funding Fees

    • Loan Placement Fees

    • Notary Fees

    • Appraisal Fees

    Correct Answer(s)
    A. Loan Origination Fees
    A. Loan Discount
    A. Loan Placement Fees
    Explanation
    Publication 17; Pages 155 & 157

    Rate this question:

Quiz Review Timeline (Updated): Apr 14, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Apr 14, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 09, 2015
    Quiz Created by
    Lojones
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.