Exam 4: Determination of Tax

Indicate for each of the following the most favorable filing status for the 2015 tax year. a.Kenny died on March 2,2014.Marge,his wife,and Bart,their son,survive.Marge filed a joint return in 2014.Bart,age 18 in 2015,is a part-time college student and continues to live at home with his mother.He works part-time,earning $6,200.What is Marge's filing status in 2015? b.Alan Spaulding is single and provides over 50% support of his niece Alicia who lives with him all year long.Alan maintains the household and claims Alicia as a dependent.Alicia makes $3,600 at a part-time job.She is a full-time student,age 18.What is Alan's filing status? c.Lily,who was divorced on July 27,2014,provides 100% of the support for her parents who live in a nursing home in Kansas and have no income.What is Lily's filing status? d.Holly was abandoned by her husband Fletcher in September of the current year.She has not seen or communicated with him since then.What is Holly's filing status? e.Rick,whose wife died in December 2012,filed a joint tax return for 2012.He did not remarry,but has continued to maintain his home in which his two dependent children live.What is Rick's filing status for 2015?

If an individual with a marginal tax rate of 15% has a long-term capital gain,it is taxed at

The following information for 2015 relates to Emma Grace,a single taxpayer,age 18: a.Compute Emma Grace's taxable income assuming she is self-supporting. b.Compute Emma Grace's taxable income assuming she is a dependent of her parents.

Michelle,age 20,is a full-time college student with earned income from wages of $5,200 and interest income of $700.Michelle's parents provide more than half of Michelle's support.Michelle's 2015 taxable income is

The child credit is for taxpayers with dependent children under the age of

Charishma is a taxpayer with taxable income exceeding $500,000.She sells a stock for a $50,000 gain.She acquired the stock 13 months earlier.The gain will be taxed at a total tax rate of 20%.

The oldest age at which the "Kiddie Tax" could apply to a dependent child is

If an individual with a marginal tax rate of 39.6% has a long-term capital gain,it is taxed at

Nonresident aliens are allowed a full standard deduction.

The regular standard deduction is available to which one of the following taxpayers?

Artco Inc.is a C corporation.This year it earned $50,000 of taxable income and paid a $10,000 distribution (dividend)to Lily,its sole shareholder.Lily has a marginal tax rate of 25%.Due to the corporation's results and the distribution paid,the IRS will receive total taxes of

Parents must provide more than half the support of their child under the age of 19 in order to claim her as a dependent qualifying child.

Eliza Smith's father,Victor,lives with Eliza who is a single taxpayer.During the year,Eliza purchased clothing for her father costing $1,200 and provided him with a room that could have been rented for $6,000.In addition,Eliza spent $4,000 for groceries she shared with her father.Eliza purchased a new television for $900 which she placed in the living room for both her father and her use. What is the amount of support provided by Eliza to her father?

Avi and Rianna are considering marriage before year-end.They each earn a salary of about $150,000,have some investment income and some itemized deductions.What additional taxes will Avi and Rianna face as a married couple?

Sarah,who is single,maintains a home in which she,her 15-year old brother,and her 21-year-old niece live.Sarah provides the majority of the support for her brother,her niece,and her cousin,age 18,who is enrolled full-time at the university and lives in an apartment.While the niece and cousin have no income,her brother has a part-time job and earns $4,000 per year.How many personal and dependency exemptions may Sarah claim?

Anita,who is divorced,maintains a home in which she and her 16 year old daughter live.Anita provides the majority of the support for her daughter and for a son,age 23,who is enrolled part-time at the university and lives in the dorm.The son also works in the campus bookstore and earns spending money of $4,500.How many personal and dependency exemptions may Anita claim?

Vincent,age 12,is a dependent of his parents.During 2015,Vincent's earned income from wages is $2,600 and Vincent received $3,000 of interest income.The parent's marginal rate is 28% and Vincent's marginal rate is 10%.Vincent's tax is

Amber supports four individuals: Erin,her stepdaughter,who lives with her; Amy,her cousin,who lives in another state; Britney,her friend,who lives legally in Amber's home all year long; and Charlie,her father,who lives in another state.Assume that the dependency requirements other than residence are all met.How many personal and dependency exemptions may Amber claim?

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.

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?