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Exam 9: Individuals As the Taxpayer

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Question 51

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Matching Regarding classification as a dependent, classify each statement in one of the four categories: a. Could be a qualifying child. b. Could be a qualifying relative. c. Could be either a qualifying child or a qualifying relative. d. Could be neither a qualifying child nor a qualifying relative. -A half-brother who lives with taxpayer.

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Question 52

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During 2019, Lisa (age 66) furnished more than 50% of the support of the following persons: ∙ Her current husband who has no income and is not claimed by anyone else as a dependent. ∙ Her stepson (age 19) who lives with her and earns $6,000 as a dance instructor.He dropped out of school a year ago. ∙ Her ex-husband who does not live with her.The divorce occurred two years ago. ∙ Her former brother-in-law who does not live with her. Presuming that all other dependency tests are met, on a separate return how many dependents may Lisa claim?

A) Two
B) Three
C) Four
D) Five
E) None of these

F) A) and E)
G) A) and D)

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Question 53

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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.

Which of the following, if any, is a deduction for AGI?

The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

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.

Match the statements that relate to each other.Note: Choice k.may be used more than once. a.Available to a 70-year-old father claimed as a dependent by his son. b.Equal to tax liability divided by taxable income. c.The highest income tax rate applicable to a taxpayer. d.Not eligible for the standard deduction. e.No one qualified taxpayer meets the support test. f.Taxpayer's ex-husband does not qualify. g.A dependent child (age 18) who has only unearned income. h.Highest applicable rate is 37%. i.Applicable rate could be as low as 0%. j.Maximum rate is 28%. k.No correct match provided. -Additional standard deduction

During 2019, Sandeep had the following transactions: Sandeep's AGI is:

Matching Regarding classification as a dependent, classify each statement in one of the four categories: a. Could be a qualifying child. b. Could be a qualifying relative. c. Could be either a qualifying child or a qualifying relative. d. Could be neither a qualifying child nor a qualifying relative. -A cousin who does not live with taxpayer.

Match the statements that relate to each other.Note: Some choices may be used more than once. a.Not available to 65-year old taxpayer who itemizes. b.Exception for U.S.citizenship or residency test (for dependency exemption purposes). c.Largest basic standard deduction available to a dependent who has no earned income in 2019. d.Considered for dependency purposes. e.Qualifies for head of household filing status. f.A child (age 15) who is a dependent and has only earned income. g.Considered in applying gross income test (for dependency exemption purposes). h.Not considered in applying the gross income test (for dependency exemption purposes). i.Unmarried taxpayer who can use the same tax rates as married persons filing jointly. j.Exception to the support test (for dependency exemption purposes). k.A child (age 16) who is a dependent and has only unearned income of $4,500.l.No correct match provided. -Resident of Canada or Mexico

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

Roy and Linda divorced in 2018.The divorce decree awards custody of their children (all under age 17) to Linda but is silent as to who is entitled to treat them as dependents for purposes of claiming the child tax credit.If Roy furnished more than half of their support, he can claim the child tax credit for them in 2019.

After Ellie moves out of the apartment she had rented as her personal residence, she recovers her damage deposit of $1,000.The $1,000 is not income to Ellie.

The additional Medicare taxes assessed on high-income individuals carry differing tax rates depending on the tax base.

Millie, age 80, is supported during the current year as follows: During the year, Millie lives in an assisted living facility.Under a multiple support agreement, indicate which parties can qualify to claim Millie as a dependent.

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

In which of the following situations, if any, may the individual not be claimed as a dependent of the taxpayer?

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

An above-the-line deduction refers to a deduction for AGI.

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.