Question

11.

In 2018, John earned $50,000 working as an employee, and won $5,000 in a state lottery. Also in 2018, John spent $400 for the purchase of lottery tickets. John elected the standard deduction on his 2018 income tax return. The amount of lottery winnings that should be included in John’s 2018 taxable income is:

A. $0.
B. $4,600.
C. $5,000.

12.	The standard deduction for married taxpayers filing jointly in 2018 is:

A. $24,000.
B. $18,000.
C. $12,000.

13.	Ben and Doris Jones are married and filed a joint 2018 return. Ben is 72 and blind. Doris is 70 and has normal vision. How many personal credits may they claim on their 2018 return?

A. Four.
B. Two.
C. None.

14.	Which one of the following statements describes the limitations applicable to the calculation of individual income taxes?

A. Personal exemptions are $0.
B. The standard deduction for an individual who may be claimed as a dependent by another taxpayer is the same as that of an individual who may not be so claimed.
C. The standard deduction may be reduced at certain levels of AGI.

15.	Which one of the following is a required test for determining the status of a person as a qualifying relative dependent?

A. The gross income test.
B. The passive-income test.
C. The blood-line DNA test.

Answer 1

Ans (11) (C) $ 5000

Explanation:

As per IRS,

All the winning amount of gambling should be included in gross income.

Here he has won $5000, so all of the amount would be included in gross income.