Question 1

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Accepted Answer

The answer of In order to qualify to file as...

Question 2

A married taxpayer may file as head of household under the abandoned spouse provisions if all of the following are met except

Accepted Answer

The statement "the taxpayer must have been married for at least two years" is incorrect. The abandonment of the spouse is the only requirement, and there is no minimum duration of the marriage that must be met. The other options (A, B, and C) are correct requirements for a person to file as head of household under the abandoned spouse provisions.

Question 3

Elise,age 20,is a full-time college student with earned income from wages of $4,400 and interest income of $500.Elise's parents provide more than half of her support.Elise's 2015 taxable income is

Accepted Answer

The answer of Elise,age 20,is a full-time college student with...

Question 4

Keith,age 17,is a dependent of his parents.During 2015,he received $3,000 of dividend income.The parent's marginal rate is 28% and Keith's rate is 10%.Keith's tax is

Accepted Answer

The answer of Keith,age 17,is a dependent of his parents.During...

Question 5

In October 2014,Joy and Paul separated and have not lived with each other since,but they are still legally married.They do not file a joint return.Joy supports their children after the separation and pays the cost of maintaining their home.Joy's filing status in 2014 and 2015 is,respectively,

Accepted Answer

Joy and Paul are still legally married, but they are not living together, so they cannot file a joint return. Joy is supporting their children and maintaining their home, which could qualify her for head of household status. However, since she is still legally married, she must use the married filing separately status. Therefore, her filing status in 2014 and 2015 would be married filing separately, and she may also qualify for head of household status.

Question 6

To qualify as an abandoned spouse,the taxpayer is not required to

Accepted Answer

The answer of To qualify as an abandoned spouse,the taxpayer...

Question 7

Vincent,age 12,is a dependent of his parents.During 2015,Vincent's earned income from wages is $2,600 and Vincent received $3,000 of interest income.The parent's marginal rate is 28% and Vincent's marginal rate is 10%.Vincent's tax is

Accepted Answer

The answer of Vincent,age 12,is a dependent of his parents.During...

Question 8

Carter dies on January 1,2014.A joint return election is made in 2014 and Marjorie properly qualifies as a surviving spouse for the two following years.Marjorie has one child that she claims as a dependent for this same period.The number of personal and dependency exemptions allowed Marjorie in 2014 and in 2015 is,respectively

Accepted Answer

The answer of Carter dies on January 1,2014.A joint return...

Question 9

Dave,age 59 and divorced,is the sole support of his mother age 83,who is a resident of a local nursing home for the entire year.Dave's mother had no income for the year.Dave's filing status and exemptions claimed are

Accepted Answer

To qualify for head of household status, Dave must have paid more than half the cost of keeping up a home for himself and a qualifying dependent, which in this case is his mother. Since his mother lived in a nursing home, the cost of keeping up a home would include any expenses he paid for maintaining his own residence. Dave can claim two exemptions, one for himself and one for his dependent mother. Therefore, the best choice would be C) Head of household and two exemptions.

Question 10

Which of the following dependent relatives does not have to live in the same household as the taxpayer who is claiming head of household filing status?

Accepted Answer

The answer of Which of the following dependent relatives does...

Question 11

Frank,age 17,received $4,000 of dividends and $1,500 from a part-time job.Frank is a dependent of his parents who are in the 28% percent bracket.Frank's 2015 taxable income is

Accepted Answer

The answer of Frank,age 17,received $4,000 of dividends and $1,500...

Question 12

In 2012,Leo's wife died.Leo has two small children,ages 2 and 4,living at home whom he supports entirely.Leo does not remarry and is not claimed as a dependent on another's return during any of this period.In 2013,2014,and 2015,Leo's most advantageous filing status is,respectively

Accepted Answer

In 2013 and 2014, Leo qualifies as a surviving spouse, allowing him to use the married filing jointly tax rates. In 2015, he qualifies as head of household since he maintains a home for his dependent children.

Question 13

The filing status in which the rates increase most rapidly is

Accepted Answer

C)The rates on the married filing a separate return schedule increases more rapidly than other individual rate schedules.

Question 14

The oldest age at which the "Kiddie Tax" could apply to a dependent child is

Accepted Answer

The answer of The oldest age at which the "Kiddie...

Question 15

Michelle,age 20,is a full-time college student with earned income from wages of $5,200 and interest income of $700.Michelle's parents provide more than half of Michelle's support.Michelle's 2015 taxable income is

Accepted Answer

The answer of Michelle,age 20,is a full-time college student with...

Question 16

Sally divorced her husband three years ago and has not remarried.Since the divorce she has maintained her home in which she and her now sixteen-year-old daughter reside.The daughter is a qualified child.Sally signed the dependency exemption over to her ex-spouse by filing the appropriate IRS form.What is Sally's filing status for the current year and how many exemptions may she claim?

Accepted Answer

Sally can file as head of household since she is unmarried, has a dependent child living with her for more than half the year, and pays for more than half of the household expenses. She can claim one exemption for her daughter as a qualified child.

Question 17

The following information for 2015 relates to Emma Grace,a single taxpayer,age 18:  a.Compute Emma Grace's taxable income assuming she is self-supporting.
b.Compute Emma Grace's taxable income assuming she is a dependent of her parents.

Accepted Answer

The answer of The following information for 2015 relates to...

Question 18

Liz and Bert divorce and Liz receives custody of their child.Bert is ordered by the court to pay child support of $10,000 per year,and Liz files the appropriate IRS form to allow Bert to claim the dependency exemption for the child.If Liz maintains the home in which she and her child live,her filing status and exemptions claimed will be

Accepted Answer

Since Liz maintains the home in which she and her child live, she can file as head of household and claim one exemption for her child. She cannot claim the dependency exemption for herself since she allowed Bert to claim it.

Question 19

Edward,a widower whose wife died in 2012,maintains a household for himself and his daughter who qualifies as his dependent.Edward's most favorable filing status for 2015 is

Accepted Answer

Edward can qualify as head of household since he is unmarried, maintains a household for his dependent daughter, and has paid more than half the cost of keeping up the household for the year. This filing status generally provides a lower tax rate and a higher standard deduction than filing as single.

Question 20

Satish,age 11,is a dependent of his parents.His only source of income in 2015 is $3,000 of interest income on bonds given him by his grandparents.Satish's marginal rate is 10%,and his parent's marginal rate is 28%.Satish's tax is

Accepted Answer

Satish's interest income is subject to the "kiddie tax" rules. The first $1,050 is tax-free, the next $1,050 is taxed at Satish's rate of 10%, and the remaining $900 is taxed at his parents' rate of 28%. Therefore, the tax is $0 + $105 + $252 = $357.

Quiz 4: Determination of Tax