Question 1

If a taxpayer does not provide more than half the support of a child, that child cannot qualify as the taxpayer's qualifying child.

Accepted Answer

The answer of If a taxpayer does not provide more...

Question 2

An individual may meet the relationship test to be a taxpayer's qualifying relative even if the individual has no family relationship with the taxpayer.

Accepted Answer

The relationship test for a qualifying relative is based on a set of criteria that includes living with the taxpayer for the entire year, having a gross income level below a specified amount, and not being claimed as a dependent by another taxpayer. Family relationship is not a requirement for meeting the relationship test. The relationship test does not require a family relationship, but rather looks at factors such as whether the individual lived with the taxpayer for the entire year, had a gross income below a certain threshold, and received more than half of their support from the taxpayer.

Question 3

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

Accepted Answer

According to IRS rules, a taxpayer who is claimed as a dependent on someone else's tax return cannot claim any dependents on their own tax return. This is true. If someone is claimed as a dependent on another person's tax return, they cannot claim any dependents on their own tax return.

Question 4

An individual may be considered as a qualifying child of her parents and a qualifying child of her grandparents in the same year.

Accepted Answer

According to IRS rules, an individual may be considered a qualifying child of both her parents and her grandparents for different purposes, such as for claiming dependent exemptions and certain tax credits. However, only one taxpayer may claim the individual as a dependent in any given tax year. This is true if the individual meets the qualifying child criteria for both her parents and her grandparents, such as if she lives with her grandparents for more than half the year and her grandparents provide more than half of her support. Both her parents and grandparents can claim her as a dependent in this case.

Question 5

To determine filing status, a taxpayer's marital status is determined based on the number of days the taxpayer was married during the year compared to the number of days they were not married.

Accepted Answer

A taxpayer's marital status for the entire tax year is determined by their marital status on the last day of the year (December 31).

Question 6

The relationship requirement is more broadly defined (includes more relationships)for a qualifying relative than for a qualifying child.

Accepted Answer

This is true. A qualifying relative can include relationships such as grandparents, siblings, and in-laws, while a qualifying child must meet specific age, residency, and support requirements. This is true. The IRS has a specific set of criteria for determining a qualifying relative, which includes a variety of possible relationships beyond just children, such as parents, siblings, nieces/nephews, and even cousins. In contrast, a qualifying child must meet more specific requirements related to age, residency, support, and other factors.

Question 7

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

Accepted Answer

According to IRS Publication 501, a child's temporary absence from the taxpayer's home to attend school full time is considered as living in the taxpayer's home during the absence for the purpose of the qualifying child residence test. According to the IRS, a child's temporary absence from the taxpayer's home to attend school full time is counted as though the child lived in the taxpayer's home during the absence for purposes of the qualifying child residence test.

Question 8

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

Accepted Answer

The answer of The test for a qualifying child includes...

Question 9

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.

Accepted Answer

Once Anna is married and files a joint return, she generally cannot be claimed as a dependent by her parents unless the joint return is only filed to claim a refund and no tax liability would exist for either spouse if they had filed separate returns.

Question 10

When determining whether a child meets the qualifying child support test for the parents, scholarships earned by the child do not count as self-support provided by the child.

Accepted Answer

Scholarships earned by the child do not count as self-support when evaluating the qualifying child support test for the parents. Scholarships earned by the child do not count towards the child's self-support when determining whether they meet the qualifying child support test for the parents.

Question 11

An individual with gross income of $6,000 could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Accepted Answer

To qualify as a qualifying relative, the individual's gross income must be less than $4,300 (for 2020). Therefore, an individual with a gross income of $6,000 would not qualify as a qualifying relative. However, the criteria for being a qualifying child includes age, relationship, residency, support, and a few other factors, but gross income is not one of them. A qualifying child must meet certain criteria related to age, relationship, support, and residency. In this scenario, it is possible for the individual to meet all of these criteria and be claimed as a qualifying child by another taxpayer. However, to be considered a qualifying relative, the individual must not meet the criteria to be claimed as a qualifying child, and must also meet additional criteria related to income and support. In this scenario, the individual's income would be too high to meet the income criteria for being a qualifying relative.

Question 12

To be considered a qualifying child of a taxpayer, the individual must be the son or daughter of the taxpayer.

Accepted Answer

While being a son or daughter of the taxpayer is one way to qualify, there are other criteria that must also be met in order for an individual to be considered a qualifying child, such as age, residency, and support. While a son or daughter can be a qualifying child, there are other qualifying criteria that an individual must meet, such as age, residency, and financial dependency.

Question 13

The relationship requirement for qualifying relative includes cousins.

Accepted Answer

Cousins do not meet the IRS criteria for a qualifying relative for tax purposes; the relationship must be closer, such as a child, sibling, parent, or another direct relative.

Question 14

The test for qualifying child includes an age restriction but the test for qualifying relative does not.

Accepted Answer

The test for qualifying child includes age restrictions, such as the child must be under 19 years old or under 24 and a full-time student. However, the test for qualifying relative does not have an age restriction. The test for qualifying child includes an age restriction, meaning the child must be under a certain age, while the test for qualifying relative does not have any age restrictions.

Question 15

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

Accepted Answer

The answer of The relationship test for qualifying relative requires...

Question 16

An individual receiving $6,000 of tax-exempt income during the year could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

Accepted Answer

To qualify as a qualifying child of another taxpayer, the individual must meet certain tests related to age, relationship, support, and residence. Tax-exempt income does not disqualify them from being a qualifying child. On the other hand, to qualify as a qualifying relative, the individual's gross income must be less than the exemption amount, which is $4,300 for 2020. Therefore, an individual receiving $6,000 of tax-exempt income would not meet the income test for a qualifying relative, but may still meet the tests for a qualifying child. This statement is not necessarily true. Whether or not an individual can qualify as a qualifying child or qualifying relative depends on various factors beyond just their tax-exempt income, such as the relationship between the individual and the taxpayer, the amount of support provided, and other factors outlined in the IRS guidelines. Therefore, it is not accurate to assume that a certain level of tax-exempt income automatically determines eligibility as a qualifying child or relative.

Question 17

When determining whether a child meets the qualifying child support test for the child's grandparents, scholarships earned by the child do not count as self-support provided by the child.

Accepted Answer

The answer of When determining whether a child meets the...

Question 18

In certain circumstances, a taxpayer who provides less than half the support of another may still be able to claim that person as a dependent as a qualifying relative.

Accepted Answer

The IRS recognizes a qualifying relative test for determining if someone can be claimed as a dependent, and providing more than half of the person's support is only one factor. Other factors include the person's relationship to the taxpayer, their gross income, and how much support they receive from others. If the person meets all the criteria for a qualifying relative, the taxpayer may still be able to claim them as a dependent even if they provide less than half the support. According to IRS rules, a taxpayer may claim a person as a dependent as a qualifying relative if certain conditions are met, even if the taxpayer provides less than half the support. These conditions include the person having a certain relationship to the taxpayer, such as a child, parent, sibling, or certain other relative, and having a gross income below a certain level.

Question 19

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Accepted Answer

This is because the criteria for qualifying as a qualifying relative and a qualifying child are mutually exclusive. A qualifying relative must meet certain financial support and relationship criteria, while a qualifying child must meet age, residency, and support criteria. Therefore, it is not possible for an individual to meet both sets of criteria at the same time. This is because the qualifying relative and qualifying child tests have different criteria and cannot overlap.

Question 20

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

Accepted Answer

It is generally more advantageous for a married couple to file jointly as they can claim more deductions and credits together, and may have a lower combined tax rate than if they filed separately. However, there may be specific circumstances where filing separately could be beneficial, such as if one spouse has high medical expenses or significant itemized deductions. It is important to consult a tax professional to determine the best filing status for your specific situation. It is generally more advantageous for a married couple to file jointly as they can take advantage of certain deductions and credits that are not available to those who file separately. Additionally, filing jointly often results in a lower tax rate overall.

Quiz 4: Individual Income Tax Overview, Dependents, and Filing Status