Individual Taxpayer Data Flashcards
7 cards from real IRS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Individual Taxpayer Data flashcards as text
A taxpayer who is legally blind can claim an additional standard deduction. For 2023, how much is this additional amount for a single filer who is both blind and age 65+?
Answer: $3,700 total additional
For 2023, each qualifying condition (age 65+ or blind) adds $1,850 for single/HOH filers, so both conditions together add $3,700.
A taxpayer receives a Form 1099-G reporting a state tax refund of $800. Under what circumstance must this refund be included in federal gross income?
Answer: Only if the taxpayer itemized deductions in the prior year and received a tax benefit
State tax refunds are taxable federally only to the extent the taxpayer received a tax benefit by deducting state taxes in the prior year.
Which of the following correctly describes a taxpayer's basis in inherited property received from a decedent who died in 2023?
Answer: Fair market value on the date of death
Inherited property generally receives a stepped-up (or stepped-down) basis equal to the fair market value on the date of the decedent's death.
A taxpayer paid $12,000 in mortgage interest and $4,000 in property taxes in 2023. The standard deduction for their filing status is $13,850. What should they do?
Answer: Take the standard deduction since it exceeds their itemized amount
Taxpayers should take the higher of the standard deduction or itemized deductions; $13,850 exceeds $16,000 is incorrect—$16,000 > $13,850, so they should itemize.
For purposes of the Earned Income Tax Credit, which type of income is NOT considered earned income?
Answer: Alimony received under a pre-2019 divorce decree
Alimony received under pre-2019 agreements is taxable income but not earned income for EITC purposes; scholarships not used for qualifying expenses may count.
A taxpayer converts a traditional IRA to a Roth IRA. Which of the following best describes the federal tax consequence in the year of conversion?
Answer: The converted amount is included in gross income in the year of conversion
The pre-tax amount converted from a traditional IRA to a Roth IRA is included in ordinary income in the year of conversion.
A taxpayer files as Head of Household. Which of the following is a requirement to qualify for this filing status?
Answer: The taxpayer must be unmarried and pay more than half the cost of maintaining a home for a qualifying person
Head of Household requires the taxpayer to be unmarried (or considered unmarried) and to have paid more than half the costs of maintaining a home for a qualifying person for more than half the year.