Question 1

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 true, according to the IRS rules. The taxpayer must provide more than half of the dependent's total support during the tax year in order to claim them as a qualifying relative.

Question 2

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 IRS rules, in order to be claimed as a dependent, a qualifying child cannot provide more than half of their own support during the year.

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 the IRS rules, if two or more people qualify to claim the same person as a dependent, the taxpayer who is entitled to the exemption through the qualified child rules has priority over a taxpayer who meets the requirements for other relatives. This is known as the tie-breaker rule.

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 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 5

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

Since Charlie is claimed as a dependent on his parents' tax return, he is not entitled to claim a personal exemption. However, he is still allowed to claim the standard deduction. In 2015, the standard deduction for a single taxpayer who is claimed as a dependent on someone else's tax return is $1,050 or the amount of earned income plus $350, whichever is greater. Since Charlie's earned income was $8,000, his standard deduction is $6,300 ($8,000 + $350).

Question 6

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

This is true according to IRS rules. However, the custodial parent can waive their right to claim the exemption and allow the non-custodial parent to claim it instead, with the proper documentation and agreement between both parties.

Question 7

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

Annisa's taxable income is $55,000 - $5,000 = $50,000. However, she is entitled to a standard deduction of $6,300, which reduces her taxable income to $50,000 - $6,300 = $43,700. However, since Annisa is single, she is entitled to an additional standard deduction of $1,000, which reduces her taxable income to $43,700 - $1,000 = $42,700. Therefore, Annisa's taxable income is $42,700.

Question 8

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 still qualify as a dependent if they meet the requirements for a qualifying relative, even if they don't meet the requirements for a qualifying child.

Question 9

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

The answer of In 2015 Brett and Lashana (both 50...

Question 10

A child credit is a partially refundable credit.

Accepted Answer

A child tax credit is partially refundable, which means that if the credit is larger than the amount of taxes owed, the taxpayer may be eligible to receive a refund for the difference up to $1,400 per child.

Question 11

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 12

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, such as job hunting expenses and work-related travel, are a type of miscellaneous expense that is subject to the 2% rule. Charitable contributions, medical expenses, and home mortgage interest expense are not included in this category.

Question 13

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

Ellen is 65 years old and qualifies for an additional standard deduction for being over 65. In 2015, the standard deduction for a single filer was $6,300, and the additional deduction for being over 65 was $1,550, totaling $7,850.

Question 14

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

According to the IRS, if someone is claimed as a dependent by another person, they are not allowed to claim a personal exemption on their own income tax return. The individual claiming the dependent is entitled to the exemption instead.

Question 15

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 is the definition of a qualifying child for the purpose of the dependency exemption as set out by the IRS.

Question 16

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

Accepted Answer

A qualifying child does not have to meet the gross income test. This test is only applicable for a qualifying relative. A qualifying child must meet other criteria such as age, relationship, residency, and support.

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

Lewis is claimed as a dependent on his parents' tax return, so his standard deduction is limited to the greater of $1,050 or the amount of his earned income plus $350. Since Lewis has no earned income, his standard deduction is $1,050.

Question 18

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

In 2015, the standard deduction for a married taxpayer filing a joint return and both spouses are 65 or older is $15,100.

Question 19

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

Accepted Answer

A same-sex couple married under New York state law is eligible for the regular standard deduction, as they are considered legally married for federal tax purposes.

Question 20

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

The answer of Husband and wife,who live in a common...

Quiz 4: Determination of Tax