Question 1

In 2013 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

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Question 2

Sarah,who is single,maintains a home in which she,her 15-year old brother,and her 21-year-old niece live.Sarah provides the majority of the support for her brother,her niece,and her cousin,age 18,who is enrolled full-time at the university and lives in an apartment.While the niece and cousin have no income,her brother has a part-time job and earns $4,000 per year.How many personal and dependency exemptions may Sarah claim?

Accepted Answer

C)Sarah may claim one personal exemption and two dependency exemptions for her niece and brother.Because her brother qualifies as her qualifying child for purposes of the dependency exemption,he does not have to meet the gross income test.Sarah may not claim her cousin as a dependent since her cousin does not live with her.

Question 3

On June 1,2013,Ellen turned 65.Ellen has been a widow for five years and has no dependents.Her standard deduction is

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Question 4

Ben,age 67,and Karla,age 58,have two children who live with them and for whom they provide total support.Their daughter is 21 years old,blind,is not a full-time student and has no income.Her twin brother is 21 years old,has good sight,is a full-time student and has income of $4,500.Ben and Karla can claim how many personal and dependency exemptions on their tax return?

Accepted Answer

Ben and Karla can claim 2 personal exemptions for themselves. They can also claim their blind daughter as a dependent, which counts as another exemption. Finally, they can claim their son as a dependent since he is a full-time student and under age 24, which counts as two more exemptions (one for the son being a dependent, and another for him being under age 24 and a full-time student). Therefore, they can claim a total of 4 exemptions for personal and dependency.

Question 5

Husband and wife,who live in a common law state,are eligible to file a joint return for 2013,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?

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Question 6

Cheryl is claimed as a dependent on her parents' tax return.She had a part-time job during 2013 and earned $4,900 during the year,in addition to $600 of interest income.What is her standard deduction?

Accepted Answer

Since Cheryl is claimed as a dependent on her parents' tax return, her standard deduction for 2013 is equal to the greater of $1,000 or her earned income plus $350, not to exceed the regular standard deduction amount of $6,100. In this case, Cheryl's earned income was $4,900, so her standard deduction is $5,200 (earned income + $350).

Question 7

Tony supports the following individuals during the current year: Miranda,his former mother-in-law who lives in her own home and has no gross income; his cousin,Jeff,age 23,who is a full-time student,earns $7,000 during the year,and lives with Tony all year long; and Matt,age 22,who is Tony's brother,is a full-time student living on campus and earns $8,000 during the year.How many dependency exemptions may Tony claim?

Accepted Answer

C)Miranda qualifies as Tony's dependent.She is related to him for tax purposes and does not have to live with him.Jeff earns too much gross income (more than the personal exemption amount)and cannot qualify as Tony's dependent.Although Matt earns more gross income than the personal exemption amount,he is considered Tony's qualifying child and,therefore,does not have to meet the gross income test.Therefore,Tony can claim two dependents.

Question 8

In 2013 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

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Question 9

Charlie is claimed as a dependent on his parents' tax return in 2013.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

As a dependent, Charlie's standard deduction for 2013 is $1,000 or his earned income plus $350, whichever is greater. In this case, his earned income was $8,000, so the calculation would be $8,000 + $350 = $8,350. However, since the maximum standard deduction for a dependent in 2013 was $6,100, that is the amount that Charlie would be able to deduct.

Question 10

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 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. Charitable contributions, medical expenses, and home mortgage interest expense are all itemized deductions but are not included in the category of miscellaneous expenses subject to the 2% floor.

Question 11

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

Accepted Answer

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has no gross income. This is because the personal exemption is based on a taxpayer's own income, and if the spouse has no gross income, they are not able to claim their own personal exemption.

Question 12

Annisa,who is 28 and single,has adjusted gross income of $55,000 and itemized deductions of $5,000.In 2013,Annisa will have taxable income of

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Question 13

John supports Kevin,his cousin,who lived with him throughout 2013.John also supports three other individuals who do not live with him:  Assume that Donna,Melissa,Morris and Kevin each earn less than $3,900.How many personal and dependency exemptions may John claim?

Accepted Answer

John can claim one personal exemption for himself and one for Kevin as a dependent. He can also claim one dependency exemption for each of Donna, Melissa, and Morris, totaling four additional exemptions. Therefore, the total number of personal and dependency exemptions John can claim is 5 (1 personal + 1 for Kevin + 3 dependencies).

Question 14

Anita,who is divorced,maintains a home in which she and her 16 year old daughter live.Anita provides the majority of the support for her daughter and for a son,age 23,who is enrolled part-time at the university and lives in the dorm.The son also works in the campus bookstore and earns spending money of $4,500.How many personal and dependency exemptions may Anita claim?

Accepted Answer

B)Anita will claim herself and her daughter who is a qualifying child.Anita's son does not qualify as her qualifying child because he fails the age test.He cannot qualify as her dependent under the general provisions because he fails the gross income test.

Question 15

Amber supports four individuals: Erin,her stepdaughter,who lives with her; Amy,her cousin,who lives in another state; Britney,her friend,who lives legally in Amber's home all year long; and Charlie,her father,who lives in another state.Assume that the dependency requirements other than residence are all met.How many personal and dependency exemptions may Amber claim?

Accepted Answer

C)Amber may claim one personal exemption and three (Erin,Britney,Charlie)dependency exemptions.Amy,her cousin,does not qualify because a cousin does not satisfy the relationship criteria and can only qualify as a dependent if she lives in the taxpayer's home all year long.Charlie,as a parent,does not have to live with the taxpayer.

Question 16

Deborah,who is single,is claimed as a dependent on her parents' tax return.She had a part-time job during 2013 and earned $850 during the year,which was her only income.What is her standard deduction?

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Question 17

A single taxpayer provided the following information for 2013:  What is taxable income?

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Question 18

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

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Question 19

Julia provides more than 50 percent of the support for three individuals: Theresa,an unrelated child who lives with Julia all year long; Margaret,Julia's cousin,who lives in another city; and Emma,Julia's daughter who lives in her own home.Each of the potential dependents earned less than $3,900.How many dependency exemptions can Julia claim on her 2013 tax return?

Accepted Answer

To claim a dependency exemption on her tax return, Julia must meet several requirements:

1. The individual must be a qualifying child or qualifying relative.
2. The individual must have a gross income of less than $3,900 (for tax year 2013).
3. Julia must provide more than 50% of the individual's support.

Theresa is a qualifying child because she lives with Julia all year long and meets other requirements (such as age and relationship). Margaret and Emma are both qualifying relatives because they are related to Julia and meet other requirements (such as income and support).

Therefore, Julia can claim two dependency exemptions on her tax return for Theresa and one of the qualifying relatives (either Margaret or Emma). She cannot claim a dependency exemption for both Margaret and Emma because she is only allowed one exemption for qualifying relatives who do not live with her.

Question 20

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?

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Quiz 4: Determination of Tax

In 2013 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