Question 1

Ed is divorced and maintains a home in which he and a dependent friend live.Ed does not qualify for head of household filing status.

Accepted Answer

In order to qualify for head of household filing status, the taxpayer must be unmarried and provide more than half of the cost of maintaining a home for a qualifying person, such as a dependent child or relative. Since Ed is divorced and does not have a dependent child, he cannot qualify for head of household status.

Question 2

Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live.Crissa, age 22, earns $11,000 during 2019 as a model.Katelyn does not qualify for head of household filing status.

Accepted Answer

Katelyn does not qualify for head of household filing status because she is divorced and does not have a child who is under age 19 or a student.

Question 3

For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

Accepted Answer

Married persons filing separate tax returns have their own tax brackets and deductions, but they still have to follow specific rules and limitations, which are different from those who are single.

Question 4

For dependents who have income, special filing requirements apply.

Accepted Answer

Dependents who have income may still need to file their own tax return, depending on the amount and type of income. They may also need to report their income on their parent or guardian's tax return.

Question 5

Surviving spouse filing status begins in the year in which the deceased spouse died.

Accepted Answer

Surviving spouse filing status, also known as "qualifying widow(er) with dependent child" status, can be used for two years following the year of the spouse's death, provided the surviving spouse does not remarry and maintains a home for a dependent child.

Question 6

Married taxpayers who file separately cannot later (i.e., after the due date for filing) change to a joint return.

Accepted Answer

Married taxpayers who file separately have the option to amend their tax returns to file jointly within 3 years from the due date of the original return (excluding extensions).

Question 7

Currently, the top income tax rate in effect is not the highest it has ever been.

Accepted Answer

Historically, the top income tax rates have been much higher than they are currently, with rates exceeding 90% in the 1950s.

Question 8

The kiddie tax does not apply to a child whose earned income is more than one-half of his or her support.

Accepted Answer

This is true. The kiddie tax applies to unearned income of children under age 18 (or under age 24 if a full-time student). However, if the child's earned income (such as from a job) is more than one-half of their support, the kiddie tax would not apply.

Question 9

In determining the filing requirement based on gross income received, both additional standard deductions (i.e., age and blindness) are taken into account.

Accepted Answer

The filing requirement based on gross income does not take into account additional standard deductions for age or blindness; it is primarily determined by the gross income threshold, filing status, and age.

Question 10

Married taxpayers who file a joint return cannot later (i.e., after the filing due date) switch to separate returns for that year.

Accepted Answer

Once a joint return is filed, it cannot be changed to separate returns for that tax year.

Question 11

Since an abandoned spouse is treated as not married and has one or more dependent children, he or she qualifies for the standard deduction available to head of household.

Accepted Answer

This is true according to the IRS guidelines for determining filing status. An abandoned spouse with dependent children can file as head of household and claim the standard deduction associated with that status.

Question 12

Darren, age 20 and not disabled, earns $4,300 during 2019.Darren's parents cannot claim him as a dependent unless he is a full-time student.

Accepted Answer

For Darren's parents to claim him as a dependent at age 20 and not disabled, he must be a full-time student for at least five months of the year, according to IRS rules regarding qualifying child criteria.

Question 13

In terms of income tax consequences, abandoned spouses are treated the same way as married persons filing separate returns.

Accepted Answer

Abandoned spouses can be treated as unmarried for tax purposes and may qualify to use the head of household filing status, which often offers more favorable tax rates and benefits than filing as married filing separately.

Question 14

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Accepted Answer

The due date of an individual taxpayer's federal income tax return is April 15th, unless that date falls on a weekend or holiday, in which case it is the next business day.

Question 15

A taxpayer who itemizes uses Schedule A (Form 1040).

Accepted Answer

Taxpayers who itemize their deductions on their federal income tax return use Schedule A (Form 1040) to report those deductions.

Question 16

Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea.Kim can claim a dependent tax credit for his parents.

Accepted Answer

In the United States, for tax purposes, a dependent must be a U.S. citizen, U.S. national, or resident alien. Since Kim's parents are residents of Canada and citizens of Korea, they do not meet the criteria for him to claim a dependent tax credit.

Question 17

In January 2019, Jake's wife dies and he does not remarry.For tax year 2019, Jake may not be able to use the filing status available to married persons filing joint returns.

Accepted Answer

If Jake's wife died in January 2019 and he did not remarry, he cannot use the filing status of married filing jointly for tax year 2019. Instead, he would have to file as either a single taxpayer or as a qualifying widow(er) with dependent child, depending on his circumstances.

Question 18

Sarah furnishes more than 50% of the support of her son and daughter-in-law who live with her.If the son and daughter-in-law file a joint return, Sarah cannot claim them as dependents.

Accepted Answer

The answer of Sarah furnishes more than 50% of the...

Question 19

Lucas, age 17 and single, earns $6,000 during 2019.His parents cannot claim him as a dependent if he does not live with them.

Accepted Answer

According to the IRS rules, if Lucas is 17 and earns $6,000 during 2019, he is not a qualifying child dependent of his parents because he is too old (over age 16) and he earns more than the exemption amount ($4,200 in 2019). His parents may still be able to claim him as a qualifying relative dependent if he meets certain conditions, but one of them is that he must live with them for more than half the year. Therefore, if Lucas does not live with his parents, they cannot claim him as a dependent.

Question 20

In any given year, that year's Tax Tables are released by the IRS before the Tax Rate Schedules for that year.

Accepted Answer

The IRS typically releases Tax Rate Schedules before or at the same time as the Tax Tables for a given year, as the Tax Rate Schedules are fundamental in determining the tax brackets which then inform the more detailed calculations found in the Tax Tables.

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