Test-Bank-for-Income-Tax-Fundamentals-2023-38th-Edition-by-Gerald-Whittenburg-Steven-Gill

Description

Chapter 1: The Individual Income Tax Return
1. A corporation is a reporting entity but not a tax-paying entity.
True False
2. Partnership capital gains and losses are allocated separately to each of the partners.
True False
3. Married taxpayers may double their standard deduction amount by filing separate
returns.
True False
4. An item is not included in gross income unless the tax law specifies that the item is
subject to taxation.
True False
5. For taxpayers who do not itemize deductions, the standard deduction amount is
subtracted from the taxpayer’s adjusted gross income.
True False
6. A taxpayer with self-employment income of $600 must file a tax return.
True False
7. A dependent child with earned income in excess of the available standard deduction
amount must file a tax return.
True False
8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750
must file a tax return.
True False