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

Anna is a 21-year-old full-time college student (she plans on returning home at the end of the school year).Her total support for the year was $34,000 (including $8,000 of tuition).Anna covered $12,000 of her support costs out of her own pocket (from savings, she did not work)and she received an $8,000 scholarship that covered all of her tuition costs.Which of the following statements regarding who is allowed to claim Anna as an exemption is true?

Which of the following statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false?

If a taxpayer does not provide more than half the support of a child, that child cannot qualify as the taxpayer's qualifying child.

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

In June of Year 1, Edgar's wife, Cathy, died, and Edgar did not remarry during the year.What is his filing status for Year 1 (assuming they did not have any dependents)?

Which of the following statements is true?

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

In June of Year 1, Eric's wife, Savannah, died.Eric did not remarry during Year 1, Year 2, or Year 3.Eric maintains the household for his dependent daughter, Catherine, in Year 1, Year 2, and Year 3.Which is the most advantageous filing status for Eric in Year 2?

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.

Jamison's gross tax liability is $7,000.Jamison had $2,000 of available credits and he had $4,000 of taxes withheld by his employer.What are Jamison's taxes due (or taxes refunded)with his tax return?

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

The standard deduction amount varies by filing status.

Miguel, a widower whose wife died in Year 1, maintains a household for himself and his daughter, who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in Year 3?

Taxpayers who file as qualifying widows/widowers use a different tax rate schedule than taxpayers who are married filing jointly for tax purposes.

Which of the following statements regarding for AGI tax deductions is true?

All of the following are for AGI deductions except:

In addition to the individual income tax, individuals may be required to pay taxes imposed on tax bases other than the individual's regular taxable income.

Jan is unmarried and has no children, but she provides all of the financial support for her mother, who lives in an apartment across town.Jan's mother qualifies as Jan's dependent.Which is the most advantageous filing status available to Jan?

Which of the following statements about a qualifying person for head of household filing status is true?

For filing status purposes, the taxpayer's marital status is determined at what point during the year?