Exam 4: Individual Income Tax Overview, Exemptions, and 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.

In year 1, the Bennetts' 25-year-old daughter, Jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. In previous years, Jane has never worked and her parents have always been able to claim her as a dependent. In year 1, a kind neighbor offers to pay for all of Jane's educational and living expenses. Which of the following statements is most accurate regarding whether Jane's parents would be allowed to claim an exemption for Jane in year 1 assuming the neighbor pays for all of Jane's support?

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.

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

Which of the following is NOT a from AGI deduction?

Greg is single. During 2014, he received $60,000 of salary from his employer. That was his only source of income. He reported $3,000 of for AGI deductions, $7,000 of itemized deductions. The 2014 standard deduction amount of a single taxpayer is $6,200 and the 2014 exemption amount is $3,950. What is Greg's taxable income?