Which of the Following Would Disqualify a Taxpayer from Filing

question 127

Multiple Choice

Which of the following would disqualify a taxpayer from filing a Form 1040EZ?

• A)The taxpayer has total income of $74,000.
• B)The taxpayer has interest income of $500.
• C)The taxpayer is age 63.
• D)The taxpayer has one dependent.

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Definitions:

Creditor Litigation

Legal proceedings initiated by a creditor to collect debts owed by a debtor who has failed to make payments.

Chapter 7 Bankruptcy

A chapter of the Bankruptcy Code that provides for the liquidation of a debtor's non-exempt assets to pay off creditors.

Automatic Stay

A legal provision that temporarily stops lawsuits, foreclosures, garnishments, and all collection activity against a debtor the moment a bankruptcy petition is filed.

Secured Creditors

Creditors who have a legal right to seize specific assets of the borrower if the borrower fails to repay the debt as agreed.