Question 1

In April of year 1, Martin left his wife Marianne. While the couple was apart, they were not legally divorced. Marianne found herself having to financially provide for the couple's only child (who qualifies as Marianne's dependent)  and to pay all the costs of maintaining the household. When Marianne filed her tax return for year 1, she filed a return separate from Martin. What is Marianne's most favorable filing status for year 1?

Accepted Answer

A)   Married filing separately.
B)   Single.
C)   Head of household.
D)   Qualifying widow.E) A) and B)
F) A) and C)

Question 2

An individual receiving $5,000 of tax exempt income during the year could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Accepted Answer

A) True 
 B)False

Question 3

Qualified dividends are taxed at the same rate as ordinary income.

Accepted Answer

A) True 
 B)False

Question 4

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Accepted Answer

A) True 
 B)False

Question 5

Joanna received $60,000 compensation from her employer, the value of her stock in ABC company appreciated by $5,000 during the year (but she did not sell any of the stock) , she received $30,000 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

Accepted Answer

A)   $60,000
B)   $65,000
C)   $95,000
D)   $97,000E) B) and C)
F) None of the above

Question 6

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.

Accepted Answer

A) True 
 B)False

Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

Correct Answer
verified

An individual receiving $5,000 of tax exempt income during the year could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Correct Answer
verified

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Correct Answer
verified

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.

Correct Answer
verified

Qualified dividends are taxed at the same rate as ordinary income.

Correct Answer
verified

Correct Answer
verified

Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

Correct AnswerverifiedShow Answer

An individual receiving $5,000 of tax exempt income during the year could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Correct AnswerverifiedShow Answer

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Qualified dividends are taxed at the same rate as ordinary income.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified