Exam 4: Determination of Tax

Frank,age 17,received $4,000 of dividends and $1,500 from a part-time job.Frank is a dependent of his parents who are in the 28% percent bracket.Frank's 2015 taxable income is

Generally,itemized deductions are personal expenses specifically allowed by the tax law.

Husband and wife,who live in a common law state,are eligible to file a joint return for 2015,but elect to file separately.They do not have dependents.Wife has adjusted gross income of $25,000 and has $2,200 of expenditures which qualify as itemized deductions.She is entitled to one exemption.Husband deducts itemized deductions of $11,200.What is the taxable income for the wife?

Paul and Sally file a joint return showing $87,000 of AGI (with no exclusions under Secs.911,931,and 933).They have three dependent children ages 6,8,and 13.What is the amount of their child credit?

All of the following items are generally excluded from income except

When a spouse dies,the surviving spouse for the year of death

Dave,age 59 and divorced,is the sole support of his mother age 83,who is a resident of a local nursing home for the entire year.Dave's mother had no income for the year.Dave's filing status and exemptions claimed are

Tony supports the following individuals during the current year: Miranda,his former mother-in-law who lives in her own home and has no gross income; his cousin,Jeff,age 23,who is a full-time student,earns $7,000 during the year,and lives with Tony all year long; and Matt,age 22,who is Tony's brother,is a full-time student living on campus and earns $8,000 during the year.How many dependency exemptions may Tony claim?

Hannah is single with no dependents and has a salary of $102,000 for 2015,along with tax exempt interest income of $3,000 from a municipality.Her itemized deductions total $6,600. Required: Compute her taxable income

A child credit is a partially refundable credit.

The person claiming a dependency exemption under a multiple support declaration must provide more than 25% of the dependent's support.

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.

Form 4868,a six-month extension of time to file,allows a taxpayer to

Keith,age 17,is a dependent of his parents.During 2015,he received $3,000 of dividend income.The parent's marginal rate is 28% and Keith's rate is 10%.Keith's tax is

Amanda has two dependent children,ages 10 and 12.She earned $15,000 from her waitress job.How much of her child credit is refundable?

Taxable income for an individual is defined as

Blaine Greer lives alone.His support comes from the following sources: Assuming a multiple support declaration exists,which of the individuals may claim Blaine as a dependent?

Generally,in the case of a divorced couple,the parent who has physical custody of a child for the greater part of the year is entitled to the dependency exemption.

Paul and Hannah,who are married and file a joint return,are in the process of adopting a child who is born in December 2015.The child,a son,comes to live with them a week after his birth on December 12.The adoption is not finalized until February of 2016.What tax issues are present in this situation?

Lewis,who is single,is claimed as a dependent on his parents' tax return.He received $2,000 during the year in dividends,which was his only income.What is his standard deduction for 2015?