Question 1

Anna is a qualifying child of her parents. However, she was recently married. Anna and her husband filed a joint return. If they had filed separately, Anna would have owed no taxes, though her husband would have owed just $5. Because Anna herself owed notaxes, her parents can still claim her as a dependent.

Accepted Answer

Once Anna is married and files a joint return, she generally cannot be claimed as a dependent by her parents unless the joint return is only filed to claim a refund and no tax liability would exist for either spouse if they had filed separate returns.

Question 2

The relationship test for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

Accepted Answer

The answer of The relationship test for qualifying relative requires...

Question 3

For purposes of the dependency exemption qualification, the test for qualifying children includes an age restriction but the test for qualifying relative does not.

Accepted Answer

The test for qualifying children includes an age restriction, but the test for qualifying relatives does not have an age restriction.

Question 4

An individual may be considered as a qualifying child of her parents and a qualifying child of her grandparents in the same year.

Accepted Answer

According to IRS rules, a child can be a qualifying child of both her parents and her grandparents in the same year if specific criteria are met. This is known as the multiple support agreement.

Question 5

In certain circumstances, a taxpayer who provides less than half the support of another may still be able to claim a dependency exemption for that person as a qualifyingrelative.

Accepted Answer

In some cases, a taxpayer who provides less than half the support of another may still claim a dependency exemption for that person as a qualifying relative if other requirements are met, such as the relative's income and relationship to the taxpayer.

Question 6

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Accepted Answer

According to the IRS, an individual cannot be both a qualifying relative and a qualifying child of the same taxpayer.

Question 7

To be considered a qualifying child of a taxpayer, the individual must be the son or daughter of the taxpayer.

Accepted Answer

While being a son or daughter is one way to qualify as a dependent child, the individual can also be a stepchild, foster child, sibling, or descendant of any of the aforementioned individuals. Additionally, the child must meet other criteria such as age, residency, and support.

Question 8

When determining whether a child meets the qualifying child support test for the parents, scholarships earned by the child do not count as self-support provided by the child.

Accepted Answer

Scholarships earned by the child do not count as self-support provided by the child for the purpose of determining whether the child meets the qualifying child support test for the parents.

Question 9

When determining whether a child meets the qualifying child support test for the child's grandparents, scholarships earned by the child do not count as self-support provided by the child.

Accepted Answer

The answer of When determining whether a child meets the...

Question 10

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

Accepted Answer

The answer of If a taxpayer does not provide more...

Question 11

An individual receiving $5,000 of tax exempt income during the year could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Accepted Answer

The test for a qualifying relative does not include an income limit related to tax-exempt income. The income test for a qualifying relative generally considers gross income that must be less than the annual exemption amount, but tax-exempt income is not included in this calculation.

Question 12

The relationship requirement for qualifying relative includes cousins.

Accepted Answer

Cousins do not meet the IRS criteria for a qualifying relative for tax purposes; the relationship must be closer, such as a child, sibling, parent, or another direct relative.

Question 13

A taxpayer who is claimed as a dependent on another's tax return may not claim any personal or dependency exemptions on his or her tax return.

Accepted Answer

This is because the person claimed as a dependent is already receiving a tax benefit through the person claiming them as a dependent.

Question 14

An individual with gross income of $5,000 could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Accepted Answer

A qualifying child must meet certain age, residency, support, and relationship requirements with the taxpayer claiming them. A gross income test is not required for a qualifying child. On the other hand, a qualifying relative must meet a gross income test in addition to other requirements, and their gross income cannot exceed a certain amount. So, an individual with a gross income of $5,000 could potentially meet the requirements to be a qualifying child, but they would exceed the gross income limit to be considered a qualifying relative.

Question 15

To determine filing status, a taxpayer's marital status is determined on January 1 of each tax year in question.

Accepted Answer

A taxpayer's marital status for the entire tax year is determined by their marital status on the last day of the tax year, December 31.

Question 16

A child who is her parents' qualifying child can claim a personal exemption for herself as long as her parents choose not to claim her as a dependent.

Accepted Answer

The answer of A child who is her parents' qualifying...

Question 17

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

Accepted Answer

According to the IRS, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence. This means that the child can still be considered a qualifying child for the purpose of the residence test.

Question 18

The relationship requirement is more broadly defined (includes more relationships) for a qualifying relative than it is for a qualifying child.

Accepted Answer

This is true. A qualifying relative can include relationships such as siblings, parents, grandparents, and more distant relatives, while a qualifying child must be a son, daughter, stepchild, foster child, or descendant of one of these.

Question 19

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

Accepted Answer

The answer of The test for a qualifying child includes...

Question 20

An individual may meet the relationship test to be a taxpayer's qualifying relative even if the individual has no family relationship with the taxpayer.

Accepted Answer

The relationship test for a qualifying relative does not require a family relationship. It can include individuals who have lived with the taxpayer for the entire year as a member of the household, as well as unrelated individuals who pass the other criteria for qualifying relatives.

Quiz 4: Individual Income Tax Overview, Exemptions, and Filing Status