Question 1

On June 1, 2015, Ellen turned 65. Ellen has been a widow for five years and has no dependents. Her standard deduction is

Accepted Answer

$6,300 + $1,550 = $7,850

Question 2

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

Accepted Answer

A son or daughter, or certain other family members, may exceed the age 19 or age 24 and full-time student status but may still be a dependent based on the qualifying relative criteria.

Question 3

In 2015 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

($15,100 = $12,600 + $1,250 + $1,250)

Question 4

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

Accepted Answer

The minimum support percentage for a person claiming the dependency exemption under the multiple support agreement is 10%.

Question 5

A child credit is a partially refundable credit.

Accepted Answer

Generally, the refundable credit is limited to 15% of the taxpayer's earned income in excess of $3,000. If the taxpayer has three or more children, a different limitation applies.

Question 6

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

Accepted Answer

The gross income test only applies to potential dependents who are not a qualifying child of the taxpayer.

Question 7

In 2015 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

Blindness of a dependent does not increase the standard deduction of the taxpayers.

Question 8

Annisa, who is 28 and single, has adjusted gross income of $55,000 and itemized deductions of $5,000. In 2015, Annisa will have taxable income of

Accepted Answer

11eac5e3_b0f1_dc33_a396_335efb6497f3_TB5639_00

Question 9

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

Tie-breaker rules favor the taxpayer who can claim the dependent under the qualifying child rules.

Question 10

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

Accepted Answer

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 11

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

If an individual does not qualify as a child, a key test is whether the taxpayer provides more than half of the individual's support.

Question 12

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 13

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

An otherwise qualifying child will no longer qualify if he provides more than half of his own support.

Question 14

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?

Accepted Answer

If one spouse on married filing separately returns itemizes deductions, the other spouse must also do so. 11eac5e3_b0f2_2a54_a396_077b2d2b3e28_TB5639_00

Question 15

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

Only one personal exemption is allowed for each person.

Question 16

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, along with tax advisor and preparation fees and expenses for producing investment income, are subcategories of the miscellaneous expenses subject to the 2% of AGI floor.

Question 17

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?

Accepted Answer

For a dependent, the standard deduction is the greater of earned income plus $350 or $1,050. Dividends are unearned income.

Question 18

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 custodial parent will take the dependency exemption for the child unless a parental release is signed.

Question 19

Charlie is claimed as a dependent on his parents' tax return in 2015. He received $8,000 during the year from a part-time acting job, which was his only income. What is his standard deduction?

Accepted Answer

For a dependent, the standard deduction is the greater of earned income plus $350 or $1,050, but no more than the current year regular standard deduction amount. For 2015, the maximum standard deduction for a single person is $6,300.

Question 20

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

Two primary considerations for qualifying child status are age and full-time student status. In addition, an otherwise eligible individual may qualify.

Quiz 2: Determination of Tax