Question 1

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

Accepted Answer

A qualifying child is not required to meet the gross income test. This test only applies to potential dependents who do not meet the qualifying child criteria.

Question 2

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

Accepted Answer

D)A person who is a dependent of another has a limited standard deduction.Married individuals filing separate returns when the other spouse itemizes and an individual filing a short period return may not take the standard deduction.The IRS follows the Supreme Court Windsor decision recognizing same sex marriages.

Question 3

When two or more people qualify to claim the same person as a dependent,a taxpayer who is entitled to the exemption through the qualified child rules has priority over a taxpayer who meets the requirements for other relatives.

Accepted Answer

According to IRS rules, when multiple people qualify to claim the same person as a dependent, a taxpayer who meets the qualified child rules has priority over a taxpayer who qualifies under the rules for other relatives.

Question 4

In 2016,the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

Accepted Answer

According to the IRS website, in 2016 the standard deduction for a married taxpayer filing a joint return and both spouses being 65 or older was $15,100. This is the closest match to the age and filing status given in the question.

Question 5

For purposes of the dependency exemption,a qualifying child may not provide more than one-half of his or her own support during the year.

Accepted Answer

This statement is true according to the IRS rules for claiming a dependent. A qualifying child must not have provided more than half of their own support during the year in order for someone else (such as a parent or guardian) to claim them as a dependent.

Question 6

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

Accepted Answer

Annisa's taxable income is her adjusted gross income minus her itemized deductions. Her adjusted gross income is $55,000 and her itemized deductions are $5,000, so her taxable income is $55,000 - $5,000 = $50,000. However, she is entitled to a standard deduction of $6,300, which is greater than her itemized deductions. Therefore, her taxable income is $55,000 - $6,300 = $48,700.

Question 7

Nonresident aliens are allowed a full standard deduction.

Accepted Answer

The answer of Nonresident aliens are allowed a full standard...

Question 8

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.

Accepted Answer

The IRS considers the parent with whom the child lived for the greater number of nights during the year as the custodial parent, and they are entitled to claim the dependency exemption on their taxes. However, the custodial parent may also choose to release the claim to the non-custodial parent if they wish to do so.

Question 9

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.

Accepted Answer

The key support criteria for qualifying child status is that the child cannot provide more than half of her own support.

Question 10

Which of the following types of itemized deductions are included in the category of miscellaneous expenses that are deductible only if the aggregate amount of such expenses exceeds 2% of the taxpayer's adjusted gross income?

Accepted Answer

Unreimbursed employee business expenses are included in the category of miscellaneous expenses that are deductible only if the aggregate amount of such expenses exceeds 2% of the taxpayer's adjusted gross income. Charitable contributions and medical expenses have their own specific rules for deductibility, while home mortgage interest expense is a separate category of itemized deduction with its own limitations.

Question 11

An individual who is claimed as a dependent by another person is not entitled to a personal exemption on his or her own return.

Accepted Answer

When a person is claimed as a dependent by another individual, they are not entitled to claim a personal exemption on their own tax return. The person claiming the dependent, however, may be entitled to claim an exemption for the dependent on their tax return.

Question 12

On June 1,2016,Ellen turned 65.Ellen has been a widow for five years and has no dependents.Her standard deduction is

Accepted Answer

In 2016, the standard deduction for a single filer was $6,300. Since Ellen is over 65, she qualifies for an additional standard deduction of $1,550, making her total standard deduction $7,850.

Question 13

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

Accepted Answer

The person claiming a dependency exemption under a multiple support declaration must provide at least 10% but not more than 50% of the dependent's support.

Question 14

The standard deduction may not be claimed by one married taxpayer filing a separate return if the other spouse itemizes deductions.

Accepted Answer

This is true according to the IRS rules. If one spouse itemizes deductions, then the other spouse must also itemize deductions, even if it results in a higher tax liability.

Question 15

In 2016,Brett and Lashana (both 50 years old)file a joint tax return claiming as a dependent their son who is blind.Their standard deduction is

Accepted Answer

The answer of In 2016,Brett and Lashana (both 50 years...

Question 16

The amount of Social Security tax paid by the taxpayer will be a consideration in determining the refundable component of the child care credit for larger families.

Accepted Answer

The amount of Social Security tax paid by the taxpayer is one of the factors that can affect the refundable portion of the child care credit, especially for larger families.

Question 17

An individual may not qualify for the dependency exemption as a qualifying child but may still qualify as a dependent.

Accepted Answer

An individual may not meet all of the criteria to be considered a qualifying child for the purpose of claiming the dependency exemption. However, they may still meet the criteria to be considered a dependent, such as meeting the support test.

Question 18

For purposes of the dependency exemption,a qualifying child must be under age 19,a full-time student under age 24,or a permanently and totally disabled child.

Accepted Answer

This statement is true. A qualifying child for the purposes of the dependency exemption must meet one of these three criteria.

Question 19

A child credit is a partially refundable credit.

Accepted Answer

A child credit, also known as the Child Tax Credit, is a partially refundable credit. This means that even if the credit is more than the taxpayer's tax liability, they may still receive a portion of the credit as a refund. The refundable portion is limited to $1,400 per child.

Question 20

One requirement for claiming a dependent as a qualifying relative is that the taxpayer provides more than 50 percent of the dependent's support (assuming it is not a multiple support agreement situation).

Accepted Answer

This is a true statement regarding the requirement for claiming a dependent as a qualifying relative. The taxpayer must provide more than 50 percent of the dependent's support, unless there is a multiple support agreement in place.

Quiz 2: Determination of Tax