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Exam 4: Individual Income Tax Overview dependents and Filing Status

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Question 61

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Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially.In 2018,Ed and Jane realized the following items of income and expense: $\begin{array}{l}\begin{array} { l } \text { Item }\\\text { Ed's Salary } \\\text { Jarne's Salary } \\\text { Murncipal bend interest income } \\\text { Qualified business income } \\\text { Alimoryy paid (for AGI deduction) } \\\text { Real property tax (fron AGI deduction) } \\\text { Charitable contributions (from AGI) }\end{array}\begin{array} { r } \text { Amount } \\35,000 \\70,000 \\400 \\1,000 \\( 7,000 ) \\( 10,000 ) \\( 15,000 )\end{array}\end{array}$ They also qualified for a $2,000 child tax credit.Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate).Finally,the 2018 standard deduction amount for MFJ taxpayers is $24,000. What is the couple's adjusted gross income?

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$99,000 se...

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Question 62

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Eric and Josephine were married in year 1.In year 2,Eric dies.The couple did not have any children.Assuming Josephine does not remarry,she may file as a qualifying widow in year 3.

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B) False

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Question 63

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When determining whether a child meets the qualifying child support test for the child's grandparents,scholarships earned by the child do not count as self-support provided by the child.

In February of 2017,Lorna and Kirk were married.During 2018,Lorna received $40,000 of compensation from her employer and Kirk received $30,000 of compensation from his employer.The couple together reported $2,000 of itemized deductions.Lorna and Kirk filed separately in 2018.What is Lorna's taxable income and what is her tax liability (use the applicable tax rate schedule and round your answer to the nearest whole number)?

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

Hannah,who is single,received a qualified dividend of $1,000.Hannah's marginal ordinary income tax rate is 28%.What amount of tax must she pay on the $1,000 dividend?

Which of the following shows the correct relationship among standard deduction amounts for the respective filing statuses?

In 2018,Brittany,who is single,cares for her father Raymond.Brittany pays the bills relating to Raymond's home.She also buys groceries and provides the rest of his support.Raymond has no gross income.Brittany received $45,000 of salary from her employer during the year.Brittany reports $3,000 of itemized deductions.What is Brittany's taxable income?

A taxpayer may qualify for the head of household filing status if she has no dependent children but pays more than half of the cost of maintaining a separate household for her dependent mother and/or father.

All of the following are for AGI deductions except:

An individual with gross income of $5,000 could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

All of the following are tests for determining qualifying relative status except ________.

Which of the following statements about a qualifying person for head of household filing status is true?

In June of year 1,Edgar's wife Cathy died and Edgar did not remarry during the year.What is his filing status for year 1 (assuming they did not have any dependents) ?

Charlotte is the Lucas family's 22-year-old daughter.She is a full-time student at an out-of-state university but plans to return home when the school year ends.During the year,Charlotte earned $4,000 of income working part-time.Her support totaled $30,000 for the year.Of this amount,Charlotte paid $7,000 with her own funds,her parents paid $14,000,and Charlotte's grandparents paid $9,000.Which of the following statements most accurately describes whether Charlotte's parents can claim Charlotte as a dependent?

The relationship requirement for qualifying relative includes cousins.

Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially.In 2018,Ed and Jane realized the following items of income and expense: $\begin{array}{l}\begin{array} { l } \text { Item }\\\text { Ed's Salary } \\\text { Jarne's Salary } \\\text { Municipal bond interest income } \\\text { Qualified business income } \\\text { Alimony paid (for AGI deduction) } \\\text { Real property tax (from AGI deduction) } \\\text { Charitable contributions (from AGI) }\end{array}\begin{array} { r } \text { Amourt } \\35,000 \\70,000 \\400 \\1,000 \\( 7,000 ) \\( 10,000 ) \\( 15,000 )\end{array}\end{array}$ They also qualified for a $2,000 child tax credit.Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate).Finally,the 2018 standard deduction amount for MFJ taxpayers is $24,000. What are the couple's taxes due or tax refund (use the tax rate schedules not tax tables)?

If an unmarried taxpayer is eligible to claim another as a dependent,the taxpayer is automatically eligible for the head of household filing status.

For filing status purposes,the taxpayer's marital status is determined at what point during the year?

The income tax base for an individual tax return is: