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Under what circumstances, if any, may an ex-spouse be claimed as a dependent?

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As an ex-spouse does not meet the relati...

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Match the statements that relate to each other. Note: Choice l. may be used more than once. -Basic standard deduction


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.
D) Considered for dependency exemption 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.

M) G) and H)
N) I) and K)

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Match the statements that relate to each other. Note: Choice l. may be used more than once. -Kiddie tax may be imposed


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 39.6%.
I) Applicable rate could be as low as 0%.
J) Maximum rate is 28%.
K) Income from foreign sources is not subject to tax.
L) No correct match provided.

M) G) and L)
N) C) and L)

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Albert buys his mother a TV. For purposes of meeting the support test, Albert cannot include the cost of the TV.

A) True
B) False

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Pedro is married to Consuela, who lives with him. Both are U.S. citizens and residents of Nebraska. Pedro furnishes all of the support of his parents, who are citizens and residents of Mexico. He also furnishes all of the support of Consuela's parents, who are citizens and residents of El Salvador. Consuela has no gross income for the year. If Pedro files as a married person filing separately, how many personal and dependency exemptions can he claim on his return?

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Four. A personal exemption for Pedro and...

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Maude's parents live in another state and she cannot claim them as her dependents. If Maude pays their medical expenses, can she derive any tax benefit from doing so? Explain.

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If Maude could otherwise claim...

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Katrina, age 16, is claimed as a dependent by her parents. During 2016, she earned $5,600 as a checker at a grocery store. Her standard deduction is $5,950 ($5,600 earned income + $350).

A) True
B) False

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In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?


A) In arriving at AGI, a taxpayer must elect between claiming deductions for AGI and deductions from AGI.
B) In arriving at taxable income, a taxpayer must elect between claiming deductions for AGI and deductions from AGI.
C) If a taxpayer has deductions for AGI, the standard deduction is not available.
D) In arriving at taxable income, a taxpayer must elect between deductions for AGI and the standard deduction.
E) None of these.

F) None of the above
G) A) and B)

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Match the statements that relate to each other. Note: Choice l. may be used more than once. -Relationship test (for dependency exemption purposes)


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 39.6%.
I) Applicable rate could be as low as 0%.
J) Maximum rate is 28%.
K) Income from foreign sources is not subject to tax.
L) No correct match provided.

M) I) and K)
N) K) and L)

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Regarding the Tax Tables applicable to the Federal income tax, which of the following statements is correct?


A) For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules.
B) The Tax Tables will always yield the same amount of tax as the Tax Rate Schedules.
C) Taxpayers can elect as to whether the use the Tax Tables or the Tax Rate Schedules.
D) The Tax Tables can be used by an estate but not by a trust.
E) No correct answer given.

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

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Which of the following items, if any, is deductible?


A) Parking expenses incurred in connection with jury duty-taxpayer is a dentist.
B) Substantiated gambling losses (not in excess of gambling winnings) from state lottery.
C) Contributions to mayor's reelection campaign.
D) Speeding ticket incurred while on business.
E) Premiums paid on personal life insurance policy.

F) A) and E)
G) B) and E)

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Buddy and Hazel are ages 72 and 71 and file a joint return. If they have itemized deductions of $14,600 for 2016, they should not claim the standard deduction.

A) True
B) False

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Regarding dependency exemptions, classify each statement in one of the four categories: -A son lives with taxpayer and earns $3,000.


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.

E) None of the above
F) B) and C)

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Adjusted gross income (AGI) sets the ceiling or the floor for certain deductions. Explain and illustrate what this statement means.

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By a ceiling what is meant is that the d...

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Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions.

A) True
B) False

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Derek, age 46, is a surviving spouse. If he has itemized deductions of $12,900 for 2016, Derek should not claim the standard deduction.

A) True
B) False

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In 2016, Ed is 66 and single. If he has itemized deductions of $7,400, he should not claim the standard deduction alternative.

A) True
B) False

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After her divorce, Hope continues to support her ex-husband's sister, Cindy, who does not live with her. Hope can claim Cindy as a dependent.

A) True
B) False

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Sylvia, age 17, is claimed by her parents as a dependent. During 2016, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Sylvia's taxable income is:


A) $4,200 - $4,550 = $0.
B) $6,200 - $5,700 = $500.
C) $6,200 - $4,550 = $1,650.
D) $6,200 - $1,000 = $5,200.
E) None of these.

F) B) and E)
G) C) and D)

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

A) True
B) False

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