Exam 4: Personal and Dependency Exemptions; Filing Status; Determination of Tax for an Individual; Filing Requirements

Tax indexation

Fred, 19 years of age and single, is claimed as a dependent on his parents' return.He has decided not to go to college.The following information is derived from his tax return for 2012: Taxable interest and dividends \ 3,600 Salary from part-time job 2,500 Itemized deductions 1,270 Which of the following is false?

Which statement below is not true of single filing status?

Which statement concerning the statute of limitations is not true?

Under a multiple support agreement, A, who provided 55 percent of the support of his mother, may assign the exemption to his sister, L, who provided 25 percent of the support.

A multiple support agreement allows a group of individuals to divide the exemption amount so that each member of the group has a proportional share of the total exemption deduction for the common dependent.

When support is provided in a form other than a current cash expenditure (e.g., a home in which the dependent is living), it is the cost of the support item that is considered in determining whether the support test is met.

In what situation is a married person generally required to file separately?

F and B were divorced in 1996, their divorce decree gave custody of their child to B, and under a separate written agreement, B surrendered the dependency exemption to F for the current year.F paid child support of $800 in the current year.B provided the other support of $2,000 for their only child.What is B's filing status and her number of exemptions?

A taxpayer who files late and fails to get the proper extension must pay a penalty of 0.5 percent per month (up to a maximum of 25%), beginning with the due date of the tax return (usually April 15 for calendar year individuals) and ending with the date the return is filed.

A parent whose 12-year-old child's only income is interest of $4,100 may elect to report the income on his own return and pay the tax with that return.

V is 66 years of age and has good sight.V provided $8,000 of the support of his elderly mother, who lives in a rest home and whose only income is Social Security benefits of $6,200.What is V's filing status and how many exemptions may he claim?

A 16-year-old child with earned income of $8,000 cannot be claimed as a dependent on his or her parents' tax return.

A single woman whose only income is taxable interest of $2,900 and Social Security benefits of $7,300 for 2012 cannot qualify as a dependent of her son because she fails to meet the gross income test.

A taxpayer whose estimated tax due after withholding is less than $1,000 need not make estimated payments even if the other requirements are met.

J paid her 2012 taxes by filing quarterly estimated tax payments of $2,000 each.She requested an automatic extension of the filing due date in March, 2013, and in July filed her completed return showing total 2012 tax liability of $9,500.If she paid $8,400 in 2012 taxes, enclosed no money with Form 4868 in March, and enclosed $1,500 with Form 1040 in July, what interest or penalty does she not owe?

A person who receives more than one-half of his or her support in welfare payments from the state cannot qualify as a dependent of another individual.

Pat, age 12, received the following income in 2012: Dividends \ 2,900 Interest 1,900 Wages 500 She deposited all her income in a savings account.Pat is a U.S.citizen and lives with her parents, who provide the full $13,000 annual cost of her support.Which statement is false?

Which of the following is not true of the due date for the individual tax return?

A taxpayer who does not file a tax return is protected by a seven-year statute of limitations (i.e., the IRS cannot assess a deficiency after seven years).