Question 1

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 2

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.

Question 3

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 4

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 5

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

A) 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 6

Nonresident aliens are allowed a full standard deduction.

Accepted Answer

The standard deduction is not available to nonresident aliens.

Question 7

Annisa,who is 28 and single,has adjusted gross income of $55,000 and itemized deductions of $5,000.In 2017,Annisa will have taxable income of

Accepted Answer

A)
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Question 8

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 9

In 2017,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

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

Question 10

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 11

In 2017,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

C) ($15,200 = $12,700 + $1,250 + $1,250)

Question 12

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 13

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 14

Taquin,age 67 and single,paid home mortgage interest of $4,000,charitable contributions of $2,000 and property taxes of $3,000 in 2017.He has no dependents.In addition to the personal exemption,Taquin will claim a deduction from AGI of

Accepted Answer

D) The $1,550 deduction supplement for age or blindness only increases the standard deduction amount, not the itemized deductions allowed. In this case the increased standard deduction of $7,900 ($6,350 + $1,550) is less than the total itemized deductions of $9,000.

Question 15

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

Accepted Answer

In the case of a taxpayer with three or more qualifying children, the refund is limited to
the greater of 15% of the taxpayer's earned income in excess of $3,000 or the excess of the
taxpayer's Social Security tax paid over the taxpayer's earned income credit for the year.

Question 16

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

Accepted Answer

It if a married couple files separately and one spouse itemized deductions, the other spouse must also itemize.

Question 17

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 18

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 19

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 20

On June 1,2017,Ellen turned 65.Ellen has been a widow for five years and has no dependents.Her standard deduction is

Accepted Answer

C) $6,350 + $1,550 = $7,900

Quiz 2: Determination of Tax