Which of the following is not a requirement to

Which of the following is not a requirement to qualify as a surviving spouse? 44.
Have not remarried a.
Have a child or stepchild who quali fi es as a dependent b.
Have been entitled to fi le a joint return with your spouse for the year of death c.
Own your home d.
Husband or wife must have died within the two preceding tax years e.
Which relative does not have to live in the same household as the taxpayer claiming head of household 45.
fi ling status?
Aunt a.
Son b.
Granddaughter c.
Father d.
Brother e.
Nellie Fox maintains her home in which she and her daughter reside. The daughter does not qualify as 46.
Nellie’s dependent. Nellie’s husband died the previous year. What is Nellie’s fi ling status for the year?
What is the amount of self-employment tax that would be paid by Andy for the year assuming he earned 47.
$97,200 while working as an employee of the University and another $20,000 from a sales business he
owns?
e.
A self-employed person is subject to the self-employment tax if self- employment taxable income is at 48.
least:
Which of the following is considered to be net earnings from self- employment? 49.
Capital gains a.
Wages received by an employee b.
Winning lottery ticket c.
Interest income from personal savings account d.
None of the above e.
The primary distinction between deductions for AGI and deductions from AGI is that the latter are 50.
primarily:
nonbusiness deductions. a.
business deductions. b.
standard deductions. c.
None of the above d.

416 CCH Federal Taxation—Basic Principles
Chapter 3 © 2010 CCH. All Rights Reserved.
SUPPLEMENTARY PROBLEMS—CHAPTER 3
Junior is a student at the local University. He is supported by his parents while going to school full time. 51.
Junior earns $2,000 from a part-time job. What is Junior’s taxable income for the year?
Mr. and Mrs. Acres were both over 65 last year before Mr. Acres died. They have no dependents. List the 52.
personal exemptions that Mrs. Acres may claim on this year’s tax return.
List the requirements that must be met in order to qualify as a head of household. 53.
How many years can surviving spouse status be claimed? 54.
Determine the self-employment tax for an individual who has $90,100 in wages, $4,000 in interest income, 55.
and $20,000 in self-employment income.

417 Testbank
© 2010 CCH. All Rights Reserved. Chapter 3
ANSWERS TO TRUE-FALSE QUESTIONS—CHAPTER 3
True. 1.
False. A multiple support agreement may be used to assign the personal exemption. 2.
True. 3.
False. Support is determined by the amount of money spent. 4.
False. Death during the year does not deny the dependency exemption so long as the individual quali fi ed as 5.
a dependent as of the date of death.
False. Scholarships are ignored in the support computation. 6.
True. 7.
False. A child, who is a full-time student, must be under age 24 if he or she has gross income over the 8.