Tax Chapter 2 Flashcards | Quizlet
43) The regular standard deduction is
available to which one of the following
D) an abandoned spouse
Page Ref.: I:2-12 and I:2-23 through I:2-24
44) Husband and wife, who live in a
common law state, are eligible to file a
joint return for 2011, but elect to file
separately. They do not have dependents.
Wife has adjusted gross income of $25,000
and has $2,200 of expenditures which
qualify as itemized deductions. She is
entitled to one exemption. Husband
deducts itemized deductions of $11,200.
What is the taxable income for the wife?
Income of wife $25,000
Minus: Itemized deductions ( 2,200)
Personal exemption ( 3,700)
Taxable Income $19,100
45) Lewis, who is single, is claimed as a
dependent on his parents' tax return. He
received $2,000 during the year in
dividends, which was his only income.
What is his standard deduction?
Explanation: A) For a dependent, the
standard deduction is the greater of
earned income plus $300 or $950.
Dividends are unearned income.
Page Ref.: I:2-12; Example I:2-6