Question 1

In April of year 1,Martin left his wife Marianne.While the couple was apart,they were not legally divorced.Marianne found herself having to financially provide for the couple's only child (who qualifies as Marianne's dependent) and to pay all the costs of maintaining the household.When Marianne filed her tax return for year 1,she filed a return separate from Martin.What is Marianne's most favorable filing status for year 1?

Accepted Answer

Marianne's most favorable filing status is head of household because she provided more than half the costs of maintaining a household for her dependent child, and she filed separately from her husband under the abandoned spouse provision. Although she is still legally married, she qualifies as an abandoned spouse since Martin left and did not financially provide for their child or contribute to the household costs. Therefore, she is eligible to file as head of household.

Question 2

In year 1,Harold Weston's wife died.Since her death,he has maintained a household for their son Frank (age 3) ,his qualifying child.Which is the most advantageous filing status available to Harold in year 4?

Accepted Answer

The answer of In year 1,Harold Weston's wife died.Since her...

Question 3

Miguel,a widower whose wife died in year 1,maintains a household for himself and his daughter who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in year 3?

Accepted Answer

Miguel qualifies for the qualifying widower filing status in year 3. To qualify, he must have a dependent child and not have remarried since his spouse's death. This filing status allows him to use the more favorable tax rates for married couples filing jointly for two additional years after his spouse's death.

Question 4

Jasmine and her husband Arty have been married for 25 years.In May of this year,the couple divorced.During the year,Jasmine provided all the support for herself and her 22-year-old child Dexter who lived in the same home as Jasmine for the entire year.Dexter is employed full-time,earning $29,000 this year.What is the Jasmine's most favorable filing status for the year?

Accepted Answer

The answer of Jasmine and her husband Arty have been...

Question 5

For filing status purposes,the taxpayer's marital status is determined at what point during the year?

Accepted Answer

A taxpayer's marital status is determined as of December 31st of the tax year. This means that if the taxpayer was married on December 31st, they are considered married for the entire year, even if they got divorced or widowed earlier in the year. Conversely, if the taxpayer was single on December 31st, they are considered single for the entire year, even if they got married later in the year.

Question 6

Sullivan's wife Susan died four years ago.Sullivan has not remarried and he maintains a home for his dependent child Sammy.In 2013,Sullivan received $70,000 of salary from his employer and he paid $6,000 of itemized deductions.What is Sullivan's taxable income for 2013?

Accepted Answer

The answer of Sullivan's wife Susan died four years ago.Sullivan...

Question 7

Sam and Tacy have been married for 25 years.They have filed a joint return every year of their marriage.They have two sons Christopher and Zachary.Christopher is 19 years old and Zachary is 14 years old.Christopher lived in his parents' home from January through August and he lived in his own apartment from September through December.During the year,Christopher attended college for one month before dropping out.Christopher's living expenses totaled $12,000 for the year.Of that,Christopher paid $5,000 from income he received while working a part time job.Sam and Tacy provided the remaining $7,000 of Christopher's support.Zachary lived at home the entire year and did not earn any income.How many personal and dependency exemptions are Sam and Tacy entitled to claim for the year and for whom are they allowed to claim the exemption(s) ?

Accepted Answer

The answer of Sam and Tacy have been married for...

Question 8

In April of year 1,Martin left his wife Marianne.The couple has two children under the age of 15.While the couple was apart,they were not legally divorced.Marianne remained in the home and paid all the costs of maintaining the home for the remainder of the year.Assuming the couple does not file jointly,which of the following statements regarding filing status is true?

Accepted Answer

Marianne may qualify to file as head of household if one of the children stays with her. Martin may qualify as head of household if the other child goes with him and he pays more than half the costs of maintaining the household for him and his child.

Question 9

In February of 2012,Lorna and Kirk were married.During 2013,Lorna received $40,000 of compensation from her employer and Kirk received $30,000 of compensation from his employer.The couple together reported $2,000 of itemized deductions.Lorna and Kirk filed separately in 2013.What are Lorna's taxable income and tax liability (use the applicable tax rate schedule) ?

Accepted Answer

The answer of In February of 2012,Lorna and Kirk were...

Question 10

By the end of year 1,Harold and Jamie Allred had been married for 30 years and have filed a joint return every year of their marriage.Their three sons,Jacob,Larry,and Andi,are ages 13,16,and 23 respectively and all live at home and are fully supported by their parents.Andi is employed full-time,earning $17,000 in year 1.How many exemptions are Harold and Jamie entitled to claim?

Accepted Answer

The answer of By the end of year 1,Harold and...

Question 11

Mason and his wife Madison have been married for five years.Jaxon,who is 18 years old and unrelated to Mason and Madison,has been living with Mason and Madison for the last two years.In May of year 1,Mason and Madison divorced.Mason and Jaxon stayed in the home and Madison moved out.During year 2,Mason provided all of Jaxon's support and Jaxon lived in the home for all of year 2.Jaxon did not earn any income during year 2.What is Mason's most favorable filing status for year 2?

Accepted Answer

The answer of Mason and his wife Madison have been...

Question 12

Which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year for filing status purposes?

Accepted Answer

The correct requirement for a married taxpayer to be treated as unmarried at the end of the year for filing status purposes is that the spouse must not live in the taxpayer's home during the last six months of the year. Therefore, option D is incorrect as it only mentions that the spouse does not live in the taxpayer's home at all during the year, without specifying the last six months. Options A, B, and C are all valid requirements.

Quiz 4: Individual Tax Overview

In year 1,Harold Weston's wife died.Since her death,he has maintained a household for their son Frank (age 3) ,his qualifying child.Which is the most advantageous filing status available to Harold in year 4?

Miguel,a widower whose wife died in year 1,maintains a household for himself and his daughter who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in year 3?

For filing status purposes,the taxpayer's marital status is determined at what point during the year?

Sullivan's wife Susan died four years ago.Sullivan has not remarried and he maintains a home for his dependent child Sammy.In 2013,Sullivan received $70,000 of salary from his employer and he paid $6,000 of itemized deductions.What is Sullivan's taxable income for 2013?

Which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year for filing status purposes?