Exam 4: Individual Income Tax Overview dependents and Filing Status

Taxpayers are generally allowed to claim deductions for expenditures unless a specific tax provision indicates the expenditure is not deductible.

Which of the following is not an itemized deduction?

Which of the following statements regarding dependents is true?

Which of the following relationships does NOT pass the relationship test for a qualifying child?

All of the following represents a type or character of income except:

From AGI deductions are generally more valuable to taxpayers than for AGI deductions.

Tax credits are generally more valuable than tax deductions because tax credits reduce a taxpayer's gross tax liability dollar for dollar while tax deductions do not.

For purposes of the qualifying child residence test,a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

For AGI deductions are commonly referred to as deductions "below the line."

Which of the following statements regarding realized income is true?

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year,the taxpayer will qualify for head of household filing status.

If no one qualifies as the dependent of an unmarried taxpayer,the unmarried taxpayer may still be able to qualify for the head of household filing status.

Which of the following series of inequalities is generally most accurate?

In order to be a qualifying relative of another,an individual's gross income must be less than ________.

All of the following are tests for determining qualifying child status except the ________.

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

The relationship test for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

Which of the following statements regarding tax credits is true?

For AGI deductions are commonly referred to as deductions "above the line."

Madison's gross tax liability is $9,000.Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer.What is Madison's taxes due (or taxes refunded)with her tax return?