Intuit Academy Tax Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Intuit Academy Tax Exam with targeted quizzes. Utilize flashcards, detailed explanations, and practice multiple choice questions to ensure success and confidence on test day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is an acceptable filing status for Taxpayer A and Taxpayer B who married on December 31, 2021?

Married Filing Jointly
Married Filing Separately
Single
Head of Household

The correct answer is: Married Filing Jointly

Married Filing Jointly is an acceptable filing status for Taxpayer A and Taxpayer B who married on December 31, 2021, because the IRS considers them to be married for the entire year for tax purposes, even though they were married for only one day of that year. This allows them to combine their incomes, deductions, and credits, which often results in a lower overall tax liability than other filing statuses. Choosing this status can also enable Taxpayer A and Taxpayer B to qualify for various tax benefits and credits that are not available to those filing separately or as single taxpayers. For example, they may be eligible for a higher standard deduction, tax credits for dependents, and various deductions that phase out at higher income levels for those who file separately or as single. In contrast, the other choices such as Single and Head of Household do not apply because these statuses are only for unmarried individuals or those who meet specific criteria that does not relate to their marital status. Married Filing Separately could be a choice for some couples, but it often results in a higher tax bill and fewer benefits compared to filing jointly. Thus, Married Filing Jointly is indeed the most advantageous and acceptable filing status for them in this situation.