Question 1

Katy has one child,Dustin,who is 18 years old at the end of the year.Dustin lived at home for three months during the year before leaving home to work full time in another city.During the year,Dustin earned $15,000.Katy provided more than half of Dustin's support for the year.Which of the following statements regarding whether Katy may claim Dustin as a dependent for the current year is accurate?

Accepted Answer

A)  Dustin is a qualifying child of Katy.
B)  Dustin fails the residence test for a qualifying child but he is considered a qualifying relative of Katy.
C)  Dustin fails the support test for a qualifying relative.
D)  Dustin fails the gross income test for a qualifying relative.E) None of the above
F) C) and D)

Question 2

Jasmine and her husband,Arty,have been married for 25 years.In May of this year,the couple divorced.During the year,Jasmine provided all the support for herself and her 22-year-old child,Dexter,who lived in the same home as Jasmine for the entire year.Dexter is employed full time,earning $29,000 this year.What is Jasmine's most favorable filing status for the year?

Accepted Answer

A)  Single.
B)  Married filing separately.
C)  Surviving spouse.
D)  Head of household.E) C) and D)
F) All of the above

Question 3

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?

Accepted Answer

A)  Yes,Charlotte is a qualifying child of her parents.
B)  No,Charlotte fails the support test for both qualifying children and qualifying relatives.
C)  No,Charlotte does not pass the gross income test.
D)  Yes,Charlotte is a qualifying relative of her parents.E) B) and D)
F) All of the above

Question 4

If no one qualifies as the dependent of an unmarried taxpayer,the unmarried taxpayer may still be able to qualify for the head of household filing status.

Accepted Answer

A) True 
 B)False

Question 5

John Maylor is a self-employed plumber of John's John Service,his sole proprietorship.In the current year,John's John Service had revenue of $120,000 and $40,000 of business expenses.
John also received $2,000 of interest income from corporate bonds.
What is John's adjusted gross income,assuming he had no other income or expenses? (ignore any deduction for self-employment tax.)

Accepted Answer

$82,000,co...

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

Correct Answer
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Correct Answer
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$82,000,co...
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Correct Answer
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Correct Answer
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If no one qualifies as the dependent of an unmarried taxpayer,the unmarried taxpayer may still be able to qualify for the head of household filing status.

Correct Answer
verified

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

Correct AnswerverifiedShow Answer

Correct Answerverified$82,000,co...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If no one qualifies as the dependent of an unmarried taxpayer,the unmarried taxpayer may still be able to qualify for the head of household filing status.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
$82,000,co...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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