Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

In 2014, Brittany, who is single, cares for her father Raymond. Brittany pays the bills relating to Raymond's home. She also buys groceries and provides the rest of his support. Raymond has no gross income. Brittany received $45,000 of salary from her employer during the year. Brittany reports $3,000 of itemized deductions. What is Brittany's taxable income?

Jennifer and Stephan are married at year end and they file separate tax returns. If Jennifer itemizes deductions on her return, Stephan must also itemize deductions on his return even if his itemized deductions don't exceed his standard deduction.

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.

To determine filing status, a taxpayer's marital status is determined on January 1 of the tax year in question.

The income tax base for an individual tax return is:

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

Lebron received $50,000 of compensation from his employer and he received $400 of interest from a municipal bond. What is the amount of Lebron's gross income from these items?

Jeremy and Annie are married. During the year Jeremy dies. When Annie files her tax return for the year in which her husband dies, she may file under the married filing jointly filing status even if she does not remarry.

Jane is unmarried and has no children, but provides more than half of her mother's financial support. Jane's mother lives in an apartment across town and has a part-time job earning $5,000 a year. Which is the most advantageous filing status available to Jane?

It is generally more advantageous from a tax perspective for a married couple to file separately than it is for them to file jointly.

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

Which of the following statements about a qualifying person for head of household filing status is true?

Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

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

Filing status determines all of the following except ____________

Anna is a qualifying child of her parents. However, she was recently married. Anna and her husband filed a joint return. If they had filed separately, Anna would have owed no taxes, though her husband would have owed just $5. Because Anna herself owed no taxes, her parents can still claim her as a dependent.

What is the couple's taxable income?

Which of the following statements regarding for AGI tax deductions is true?

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

In June of year 1, Jake's wife Darla died. The couple did not have any children and Jake did not remarry in year 1 or year 2. Which is the most favorable filing status for Jake in year 2?