Exam 4: Individual Tax Overview

In certain circumstances,a married taxpayer who files separately may qualify for the head of household filing status.

Which of the following statements regarding realized income is true?

Sheri and Jake Woodhouse have one daughter,Emma,who is 16 years old.They also have taken in Emma's friend,Harriet,who has lived with them since February of the current year and is also 16 years of age.The Woodhouses have not legally adopted Harriet but Emma often refers to Harriet as "her sister." The Woodhouses provide all of the support for both girls,and both girls live at the Woodhouse residence.Which of the following statements is true regarding the dependency exemptions (and the reason for the exemptions) Sheri and Jake may claim for the current year for these girls?

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

A taxpayer may qualify for the head of household filing status even if she does not have any dependent children.

Taxpayers who file as qualifying widows/widowers are treated exactly the same for tax purposes in all respects as taxpayers who are married filing jointly for tax purposes.

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

Which of the following is not an itemized deduction?

The relationship requirement for qualifying relative includes cousins.

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

Mason and his wife Madison have been married for five years.Jaxon,who is 18 years old and unrelated to Mason and Madison,has been living with Mason and Madison for the last two years.In May of year 1,Mason and Madison divorced.Mason and Jaxon stayed in the home and Madison moved out.During year 2,Mason provided all of Jaxon's support and Jaxon lived in the home for all of year 2.Jaxon did not earn any income during year 2.What is Mason's most favorable filing status for year 2?

Eric and Josephine were married in year 1.In year 2,Eric dies.The couple did not have any children.Assuming Josephine does not remarry,she may file as a qualifying widow in year 3.Josephine does not qualify for the qualifying widow filing status because there is no dependent child involved.

Char and Russ Dasrup have one daughter,Siera,who is 16 years old.In November of last year,the Dasrup's took in Siera's 16 year old friend,Angela,who has lived with them ever since.The Dasrup's have not legally adopted Angela but Siera often refers to Angela as "her sister." The Dasrup's provide all of the support for both girls,neither girl receives any income during the year,and both girls live at the Dasrup's residence.Which of the following statements is true regarding the dependency exemptions (and the reason for the exemptions) Char and Russ may claim for the current year for these girls?

Katy has one child,Dustin,who is 18 years old at the end of the year.Dustin lived at home for three months during the year before leaving home to work full-time in another city.During the year,Dustin earned $15,000.Katy provided more than half of Dustin's support for the year.Which of the following statements regarding whether Katy may claim Dustin as a dependent for the current year is accurate?

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

In addition to the individual income tax,individuals may be required to pay taxes imposed on tax bases other than the individual's regular taxable income.

A taxpayer who is claimed as a dependent on another's tax return may not claim any personal or dependency exemptions on his or her tax return.

Itemized deductions and the standard deduction are deductions from AGI but deductions for personal and dependency exemptions are deductions for AGI.

Which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year for filing status purposes?

Charlotte is the Lucas family's 22-year-old daughter.She is a full-time student at an out-of-state university but plans to return home when the school year ends.During the year,Charlotte earned $4,000 of income working part-time.Her support totaled $30,000 for the year.Of this amount,Charlotte paid $7,000 with her own funds,her parents paid $14,000,and Charlotte's grandparents paid $9,000.Which of the following statements most accurately describes whether Charlotte's parents can claim a dependency exemption for Charlotte?