Question 1 of 60. What is federal taxable income? Income after deductions. Total income. The same as AGI.

AGI less standard deduction (or itemized deductions).

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Question 2 of 60.

Which of the following types of income is NOT specifically excluded from federal gross income?

Compensation for personal injuries.

Compensation for services, including fees, commissions, and other fringe benefits.

Federal income tax refunds.

Gifts and inheritances.

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Question 3 of 60.

Michael (65) and Anna (64) will file MFJ. Anna is blind. What will be the amount of their standard deduction on Form 1040?

$24,400

$25,700

$27,000

$28,300

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Question 4 of 60.

Which of these types of income may be fully nontaxable?

Worker’s compensation.

Vacation pay.

Pension income.

Commissions.

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Question 5 of 60.

If an employer pays the cost of disability insurance, are disability retirement payments as the result of an injury taxable?

Yes.

No.

Partially.

Possibly, depending on the circumstances.

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Question 6 of 60.

Which of these statements is incorrect concerning group-term life insurance provided by an employer?

In most cases, the cost of the group-term life insurance not exceeding $50,000 is not taxable.

The taxable portion of the cost of group-term life insurance is reported in box 12 of Form W-2 with code “C.”

The total cost of the group-term life insurance is reported in box 14 of Form W-2.

The taxable portion of the cost of group-term life insurance is reported in box 1 of Form W-2 as wages.

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Question 7 of 60.

Clergy qualified housing allowance is:

Included in gross income and subject to Social Security tax.

Excluded from gross income and from self-employment tax.

Excluded from gross income, but generally subject to self-employment tax.

Included in gross income, but subject to self-employment tax.

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Question 8 of 60.

Gifts and inheritances are:

Excluded from gross income.

Partially excluded from gross income.

Partially included in gross income.

Included in gross income.

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Question 9 of 60.

Which of these types of income is included in federal gross income?

Welfare payments.

Child support payments.

Federal income tax refunds.

Income from an interest in an estate or trust.

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Question 10 of 60.

Which is correct for meals and lodging provided by an employer?

Meals provided for the convenience of an employer are excluded from gross income, but lodging is not.

Meals and lodging provided for the convenience of the employer are excluded from gross income.

Lodging provided for the convenience of an employer is included in gross income, but meals are not.

Meals and lodging provided by an employer are always taxable.

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Question 11 of 60.

A Form W-2 has specific boxes to report withholding for how many types of taxes?

2

3

4

5

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Question 12 of 60.

When would an employer-provided vehicle become a taxable benefit?

It is always a taxable benefit.

When there is regular, personal use of the vehicle.

It will never be a taxable benefit.

When there is de minimis personal use.

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