Question 1

If an individual does not spend funds that have been received from another source (e.g. ,interest on municipal bonds),the unexpended amounts are not considered for purposes of the support test.

Accepted Answer

The funds are counted only if used for support purposes.

Question 2

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2014 is $16,000 ($12,400 + $1,200 + $1,200 + $1,200).

Accepted Answer

The standard deduction for a married couple filing jointly, both over age 65 and one spouse is blind, is $16,000 for tax year 2014 according to the IRS.

Question 3

In determining whether the gross income test is met for dependency exemption purposes,only the taxable portion of a scholarship is considered.

Accepted Answer

For the support test,all of the scholarship is disregarded.Scholarships are treated differently for purposes of the gross income test.

Question 4

Roy and Linda were divorced in 2013.The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents.If Roy furnished more than half of their support,he can claim them as dependents in 2014.

Accepted Answer

Not unless Linda consents.

Question 5

Albert buys his mother a TV.For purposes of meeting the support test,Albert cannot include the cost of the TV.

Accepted Answer

Capital expenditures can be considered in determining support.It is assumed that the TV is largely for the mother's use.

Question 6

For the year a spouse dies,the surviving spouse is considered married for the entire year for income tax purposes.

Accepted Answer

This statement is true according to the IRS. The surviving spouse retains their marital status for the entire year in which their spouse passed away.

Question 7

In 2014,Hal furnishes more than half of the support of his ex-wife and her father,both of whom live with him.The divorce occurred in 2013.Hal may claim the father-in-law and the ex-wife as dependents.

Accepted Answer

The father-in-law meets the relationship test,but the ex-wife does not.Except in the year of divorce,an ex-wife can be a dependent under the member of the household test.

Question 8

Debby,age 18,is claimed as a dependent by her mother.During 2014,she earned $1,100 in interest income on a savings account.Debby's standard deduction is $1,450 ($1,100 + $350).

Accepted Answer

Debby's standard deduction is the minimum allowed of $1,000.

Question 9

Benjamin,age 16,is claimed as a dependent by his parents.During 2014,he earned $700 at a car wash.
Benjamin's standard deduction is $1,350 ($1,000 + $350).

Accepted Answer

His standard deduction is the greater of $1,000 or $1,050 ($700 + $350).

Question 10

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

Accepted Answer

If Dan itemizes,Donna must itemize.

Question 11

A dependent cannot claim a personal exemption on his or her own return.

Accepted Answer

A dependent cannot claim a personal exemption on his or her own return, as the personal exemption is claimed by the person who is claiming the dependent.

Question 12

After her divorce,Hope continues to support her ex­husband's sister,Cindy,who does not live with her.Hope can claim Cindy as a dependent.

Accepted Answer

For purposes of the relationship test,divorce does not change "in­law" status.

Question 13

Katrina,age 16,is claimed as a dependent by her parents.During 2014,she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,950 ($5,600 earned income + $350).

Accepted Answer

Her standard deduction cannot exceed the regular standard deduction available to single persons (or $6,200 for 2014).

Question 14

Clara,age 68,claims head of household filing status.If she has itemized deductions of $10,250 for 2014,she should not claim the standard deduction.

Accepted Answer

The standard deduction yields $10,650 ($9,100 + $1,550).

Question 15

Derek,age 46,is a surviving spouse.If he has itemized deductions of $12,700 for 2014,Derek should not claim the standard deduction.

Accepted Answer

The standard deduction would only provide $12,400.

Question 16

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,600 for 2014,they should not claim the standard deduction.

Accepted Answer

The standard deduction provides $14,800 ($12,400 + $1,200 + $1,200).

Question 17

Monique is a resident of the U.S.and a citizen of France.If she files a U.S.income tax return,Monique cannot claim the standard deduction.

Accepted Answer

Either U.S.citizenship or residency will suffice in order to claim the standard deduction.Monique is not a nonresident alien.

Question 18

Butch and Minerva are divorced in December of 2014.Since they were married for more than one-half of the year,they are considered as married for 2014.

Accepted Answer

They must be married at the end of the year (unless one spouse dies)in order to be considered married.

Question 19

When separate income tax returns are filed by married taxpayers,one spouse cannot claim the other spouse as an exemption.

Accepted Answer

An exemption is allowed if the spouse has no gross income and is not claimed as a dependent by another.

Question 20

Using borrowed funds from a mortgage on her home,Leah provides 52% of her own support,while her sons furnished the rest.Leah can be claimed as a dependent under a multiple support agreement.

Accepted Answer

The sons do not provide more than half of their mother's support.In this situation,the mother is self­supporting.

Quiz 3: Tax Formula and Tax Determination;an Overview of Property Transactions

If an individual does not spend funds that have been received from another source (e.g. ,interest on municipal bonds),the unexpended amounts are not considered for purposes of the support test.

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2014 is $16,000 ($12,400 + $1,200 + $1,200 + $1,200).

In determining whether the gross income test is met for dependency exemption purposes,only the taxable portion of a scholarship is considered.

Roy and Linda were divorced in 2013.The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents.If Roy furnished more than half of their support,he can claim them as dependents in 2014.

Albert buys his mother a TV.For purposes of meeting the support test,Albert cannot include the cost of the TV.

For the year a spouse dies,the surviving spouse is considered married for the entire year for income tax purposes.

In 2014,Hal furnishes more than half of the support of his ex-wife and her father,both of whom live with him.The divorce occurred in 2013.Hal may claim the father-in-law and the ex-wife as dependents.

Debby,age 18,is claimed as a dependent by her mother.During 2014,she earned $1,100 in interest income on a savings account.Debby's standard deduction is $1,450 ($1,100 + $350).

Benjamin,age 16,is claimed as a dependent by his parents.During 2014,he earned $700 at a car wash. Benjamin's standard deduction is $1,350 ($1,000 + $350).

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

A dependent cannot claim a personal exemption on his or her own return.

After her divorce,Hope continues to support her exhusband's sister,Cindy,who does not live with her.Hope can claim Cindy as a dependent.

Katrina,age 16,is claimed as a dependent by her parents.During 2014,she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,950 ($5,600 earned income + $350).

Clara,age 68,claims head of household filing status.If she has itemized deductions of $10,250 for 2014,she should not claim the standard deduction.

Derek,age 46,is a surviving spouse.If he has itemized deductions of $12,700 for 2014,Derek should not claim the standard deduction.

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,600 for 2014,they should not claim the standard deduction.

Monique is a resident of the U.S.and a citizen of France.If she files a U.S.income tax return,Monique cannot claim the standard deduction.

Butch and Minerva are divorced in December of 2014.Since they were married for more than one-half of the year,they are considered as married for 2014.

When separate income tax returns are filed by married taxpayers,one spouse cannot claim the other spouse as an exemption.

Using borrowed funds from a mortgage on her home,Leah provides 52% of her own support,while her sons furnished the rest.Leah can be claimed as a dependent under a multiple support agreement.

Quiz 3: Tax Formula and Tax Determination;an Overview of Property Transactions

If an individual does not spend funds that have been received from another source (e.g. ,interest on municipal bonds),the unexpended amounts are not considered for purposes of the support test.

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2014 is $16,000 ($12,400 + $1,200 + $1,200 + $1,200).

In determining whether the gross income test is met for dependency exemption purposes,only the taxable portion of a scholarship is considered.

Roy and Linda were divorced in 2013.The divorce decree awards custody of their children to Linda but is silent as to who is entitled to claim them as dependents.If Roy furnished more than half of their support,he can claim them as dependents in 2014.

Albert buys his mother a TV.For purposes of meeting the support test,Albert cannot include the cost of the TV.

For the year a spouse dies,the surviving spouse is considered married for the entire year for income tax purposes.

In 2014,Hal furnishes more than half of the support of his ex-wife and her father,both of whom live with him.The divorce occurred in 2013.Hal may claim the father-in-law and the ex-wife as dependents.

Debby,age 18,is claimed as a dependent by her mother.During 2014,she earned $1,100 in interest income on a savings account.Debby's standard deduction is $1,450 ($1,100 + $350).

Benjamin,age 16,is claimed as a dependent by his parents.During 2014,he earned $700 at a car wash. Benjamin's standard deduction is $1,350 ($1,000 + $350).

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

A dependent cannot claim a personal exemption on his or her own return.

After her divorce,Hope continues to support her ex­husband's sister,Cindy,who does not live with her.Hope can claim Cindy as a dependent.

Katrina,age 16,is claimed as a dependent by her parents.During 2014,she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,950 ($5,600 earned income + $350).

Clara,age 68,claims head of household filing status.If she has itemized deductions of $10,250 for 2014,she should not claim the standard deduction.

Derek,age 46,is a surviving spouse.If he has itemized deductions of $12,700 for 2014,Derek should not claim the standard deduction.

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,600 for 2014,they should not claim the standard deduction.

Monique is a resident of the U.S.and a citizen of France.If she files a U.S.income tax return,Monique cannot claim the standard deduction.

Butch and Minerva are divorced in December of 2014.Since they were married for more than one-half of the year,they are considered as married for 2014.

When separate income tax returns are filed by married taxpayers,one spouse cannot claim the other spouse as an exemption.

Using borrowed funds from a mortgage on her home,Leah provides 52% of her own support,while her sons furnished the rest.Leah can be claimed as a dependent under a multiple support agreement.

After her divorce,Hope continues to support her exhusband's sister,Cindy,who does not live with her.Hope can claim Cindy as a dependent.