Alvin tells his client, Les that he may owe an underpayment penalty on this year’s taxes. Which of the statements below would prevent Les from owing an underpayment penalty?
Select one:
a. He fails to withhold enough income tax.
b. He fails to make required estimated tax payments.
c. He fails to make estimated tax payments on time.
d. He did not have a tax liability in the previous tax year.
Robert is single and 66 years old. He lives with his adult son and his wife. They claim Robert as a dependent. Robert receives Social Security and he also worked at Lowe’s and earned $3,000. Lowe’s withheld federal tax. Robert wants to file a return in order to receive a refund of the withholdings. His standard deduction for 2017 would be:
Select one:
a. $4,900
b. $3,350
c. $6,300
d. $7,850
Elaine sold stock this past year and has no idea as to where to report the sale of her stock on her tax return. Which of the following is the correct procedure of reporting a stock sale?
Select one:
a. Schedule D, then transfer information to the 1040.
b. Schedule D, then Form 8949, then transfer information to the 1040.
c. Form 8949, then transfer the information to the 1040.
d. Form 8949, then Schedule D, and then transfer information to the 1040.
There are 2 methods of signing a tax return that is to be electronically filed. The methods are the Self-Select PIN and Practitioner PIN. Which of the following is correct in regard to using the Practitioner PIN method?
Select one:
a. Everyone is eligible to use the Practitioner PIN method.
b. Signed Form 8879 is required and the taxpayer must create their own PIN.
c. Taxpayers who filed Form 1040-NR are not eligible to use the Practitioner PIN method.
d. Taxpayers must provide their prior year’s adjusted gross income to use the Practitioner PIN method.
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