1. Look at the Form 1040 you prepared for Rodolfo and Anna Ramirez. What is the amount on Form 1040, Line 38?

A. $ 32,143.
B. $ 19,059.
C. $ 13,084. 
D. $ 1,233.

2. Look at the Form 1040 you prepared for Rodolfo and Anna Ramirez. What is the amount on Form 1040, Line 40?

A. $ 32,143.
B. $ 19,059.
C. $ 19,911. 
D. $ 13,250.

3. If you are increasing your standard deduction by the amount of state or local sales or excise taxes, complete __________, attach it to your return and be sure to check the box on line 40b of Form 1040 or line 24b of Form 1040A.

A. Schedule A (Form 1040A or 1040).
B. Schedule L (Form 1040A or 1040).
C. Schedule E (Form 1040A or 1040). 
D. Form 2106.

4. You may benefit from itemizing your deductions on Schedule A (Form 1040) if you had net disaster loss from a federally declared disaster.

True False

5. The standard deduction for most taxpayers who do not itemize their deductions on Schedule A of Form 1040 is higher in 2009 than it was in 2008.

True False

6. Some of your itemized deductions may be limited if your adjusted gross income (AGI) is more than

A. $ 166,800 ($83,400 MFS).
B. $ 156,400 ($75,900 MFS).
C. $ 159,950 ($79,975 MFS). 
D. $ 195,500 ($97,900 MFS).

7. You must determine your filing status before you can determine your filing requirements,

A. And correct exemptions.
B. And health insurance deduction.
C. Standard deduction and correct tax. 
D. And itemized deductions.

8. Both you and your spouse must include all of your income, exemptions, and deductions on your return. In some cases, one spouse may be relieved of joint liability for tax, interest, and penalties on a joint return. The type of relief available is   

A. Innocent spouse relief.
B. Separation of liability.
C. Equitable relief. 
D. Any of the above.

9. Larry, 46, and Donna, 33, are filing a joint return for 2009. Neither is blind. They decide not to itemize their deductions. Their standard deduction is

A. $5,700.
B. $11,400.
C. $8,350. 
D. $3,650.

 10. Stanley, 48, and Rosalind, 39, are filing a joint return for tax year 2009. Stanley is blind at the end of 2009. Their standard deduction is

A. $ 5,700.
B. $ 12,500.
C. $ 7,100. 
D. $ 9,450.

11. If you elect to deduct state and local general sales taxes on your return, you must check box b on line 5 of Schedule A (Form 1040). To figure your deduction, you can use

A. Your actual expenses.
B. The optional sales tax tables.
C. The percentages at the end of Schedule A. 
D. Both A or B are correct.

12.  Sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate.

True False

13. If you checked the "yes" box and your local general sales tax rate changed during 2009, figure the rate to enter on line 3 by

A. Adding all the rates that were in effect for the whole year.
B. Multiplying the last tax rate that was in effect by a fraction.
C. Multiplying each tax rate for the period it was in effect by a fraction. 
D. Dividing each tax rate for the period it was in effect by the total number of days in the year (365 days).

14. Capers is a single woman, age 26. She will itemize her deductions for tax year 2009. Her total adjusted gross income was $187,300. Her total itemized deductions are $23,923. The following amounts are from Schedule A: line 4 $7,200, line 5 $668, line 6 $750, line 8 $465, line 10 $9,800, line 14 $3,200, line 15 $13,000, line 19 $1,500 and line 27 $340. What are her total itemized deductions allowed for federal?

A. $23,923.
B. $23,649.
C. $36,923. 
D. $0.

15. Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deductions.

True False

16. Lucy was single for tax year 2009 and will itemize her deductions. Her adjusted gross income (Form 1040 line 38) was $150,000. Her total itemized deductions are $11,978 of which are for the following amounts from federal Schedule A: line 5 $668.00, line 6 $950, line 8 $500, and line 14 $9,860.  What are her total itemized deductions allowed for Federal? 

A. $11,978.
B. $11,313.
C. $11,856.
D. $10,943.  

17. A dollar amount that depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer and reduces the amount of income on which you are taxed is

A. The standard deduction.
B. An itemized deduction.
C. A credit. 
D. A general deduction.

18. Toby, age 25, is a single man. He will itemize his deductions for tax year 2009. His adjusted gross income was $199,000 (Form 1040, line 38). He takes care of his nephew and provided all the support for him and meets all the tests to qualify for the head of household filing status. His total itemized deductions are $27,591 and they are the following amounts from federal Schedule A: line 5 $1,221.00, line 6 $950, line 8 $500, line 10 $10,000,line 13 $450, line 14 $10,450, line 19 $3,000, and line 27 $1,020.  What are his total itemize deductions allowed for federal? 

A. $27,591.
B. $26,739.
C. $17,141.
D. $0.

19. The standard deduction for an individual for whom an exemption can be claimed on another person's tax return is generally limited to

A. $950.
B. The individual's earned income for the year plus $300 (but not more than the regular standard deduction amount).
C. $5,700.  
D. The greater of A or B above.

20. Marvin is married to Clara and for 2009, due to some marital problems, they will file married filing separate. Clara will itemize her deductions of $11,000 because she had qualifying car expenses. Marvin wants to use the standard deduction on his return, because his total itemized deductions amount is only $4,100 for 2009 and it is less than the standard deduction. Since Clara will itemize her deductions,

A. Marvin has to use the standard deduction amount of $5,700.
B. Marvin also has to itemize his deductions and use the $4,100 amount.
C. Marvin can use his $5,700 standard deduction amount.  
D. Marvin should not file a return.