Exam 2: Determination of Tax

Juanita's mother lives with her.Juanita purchased clothing for her mother costing $1,000 and provided her with a room that Juanita estimates she could have rented for $4,000.Juanita spent $5,000 on groceries she shared with her mother.Juanita also paid $700 for her mother's health insurance coverage.How much of these costs is considered support?

Deborah,who is single,is claimed as a dependent on her parents' tax return.She had a part-time job during 2015 and earned $850 during the year,which was her only income.What is her standard deduction?

Tax returns from individual and C corporate taxpayers are due on the 15th day of the third month following the close of the tax year.

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

For each of the following taxpayers indicate the applicable filing status,the number of personal and dependency exemptions available,and the number of children who qualify for the child credit. a.Jeffrey is a widower,age 71,who receives a pension of $10,000,nontaxable social security benefits of $12,000,and interest of $2,000.He has no dependents. b.Selma is a single,full-time college student,age 20,who earned $6,800 working part-time.She has $1,700 of interest income and received $1,000 support from her parents. c.Olivia is married,but her husband left her three years ago and she has not seen or heard from him since.She supports herself and her six-year-old daughter.She paid all the household expenses.Her income consists of salary of $18,500 and interest of $800. d.Ruben is a single,full-time college student,age 20,who earned $6,800 working part-time.He has $250 of interest income and received $10,000 support from his parents. e.Cathy is divorced and received $12,000 alimony from her former husband and earned $35,000 working as an administrative assistant.She also received $2,500 of child support for her daughter who lives with her.Cathy filed the appropriate IRS form and gave up the dependency exemption to her former husband.

A legally married same-sex couple can file a joint return.

Keith,age 17,is a dependent of his parents.During 2016,he received $3,000 of dividend income.The parent's marginal rate is 28% and Keith's rate is 10%.Keith's tax is

A qualifying child of the taxpayer must meet the gross income test.

Shane and Alyssa (a married couple)have AGI of $345,000 in 2016.They bought a house this year and paid $16,000 of interest expense on the mortgage and paid $6,500 of property taxes.They will be allowed a deduction from AGI of

Lila and Ted are married and have AGI of $337,000 in 2016.They had their first children this year,twins.Lila and Ted will be allowed a deduction for personal and dependency exemptions of

Annisa,who is 28 and single,has adjusted gross income of $55,000 and itemized deductions of $5,000.In 2016,Annisa will have taxable income of

The standard deduction is the maximum amount of itemized deductions which may be claimed by a taxpayer,and is based on an individual's filing status,age,and vision.

A corporation has revenue of $350,000 and deductible business expenses of $240,000.What is the federal income tax,before credits?

Satish,age 11,is a dependent of his parents.His only source of income in 2016 is $3,000 of interest income on bonds given him by his grandparents.Satish's marginal rate is 10%,and his parent's marginal rate is 28%.Satish's tax is

A married taxpayer may file as head of household under the abandoned spouse provisions if all of the following are met except

Although exclusions are usually not reported on an individual's income tax return,interest income on state and local government bonds must be reported on the tax return.

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Nate and Nikki have three dependent children ages 12,15,and 17.Their modified AGI is $120,000.What is the amount of the child credit to which they are entitled?

Which of the following is not considered support for the dependent support test?

Edward,a widower whose wife died in 2013,maintains a household for himself and his 10-year-old daughter.Edward's most favorable filing status for 2016 is