The Tax Institute Quiz
Your Name (use a false name if you don't want anyone to know your score)
(True or False)
1. The cost of diet foods is a deductible medical expense if a taxpayer is directed by a doctor to lose weight as a treatment for a specific disease.
True
False
(True or False)
2. Nontaxable earned income, such as 401(k) contributions, is excluded from earned income for EIC purposes.
True
False
(True or False)
3. California does not tax interest earned from United States savings bonds although the fedral goverment does. You must make an adjustment on Schedule CA for interest from U.S. savings bonds.
True
False
4. Which of the following will not extend the statute of limitations on a tax return?
a. Omission of a significant amount of gross income.
b. Mutual consent of the IRS and the taxpayer.
c. Failure to pay the tax due with the tax return.
d. Failure to file a tax return.
5. Beginning in 2005, the charitable contribution deduction for a vehicle donated to charity is generally limited to the gross proceeds from its sale. The rule applies if the claimed value of the donated vehicle is more than:
a. $100
b. $200
c. $250
d. $500
6. For taxpayers with multiple homes, the regulations issued in late December 2002, relating to the exclusion of gain on the sale of a principal residence list several factors relevant to determining which home is the principal residence. All of the following are relevant factors except:
a. The amount of time the home is used.
b. The value of the homes.
c. The place of employment of the taxpayers.
d. The address used for tax returns.
7. Mortgage insurance premiums paid in 2007 in connection with home acquisition debt on a qualified home are:
a. Deductible as an adjustment to income on Form 1040.
b.Deductible as an itemized deduction on schedule A.
c. Deductible as a credit on Form 1040.
d. Not deductible.
8. John collects beverage containers as a hobby. During 2007 John sold $10,000 in aluminum cans to A&B Recycling Centers of America. What amount of the sold cans must John include in gross income for 2007?
a. $0 on Federal, $0 on State
b. $10,000 on Federal, $0 on State
c. $0 on Federal, $10,000 on State
d. $10,000 on Federal, $10,000 on State
9. The deduction for teachers for classroom materials is available for all of the following except:
a. Community College Counselors.
b. High School Principals.
c. Elementary School Instructors.
d. Kindergarten Teacher's aides.
(True or False)
10. Federal law and California law are different regarding medical expense deductions as itemized deductions and health insurance benefits for Domestic Partners.
True
False
