Question 1

Suri,age 8,is a dependent of her parents and has unearned income of $6,000.She must file her own tax return.

Accepted Answer

The answer of Suri,age 8,is a dependent of her parents...

Question 2

When a spouse dies,the surviving spouse for the year of death

Accepted Answer

The surviving spouse may file a married filing jointly return for the year of the spouse's death, regardless of when during the year the death occurred.

Question 3

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 4

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 5

Which filing status reaches the 37% marginal rate at the lowest level of taxable income?

Accepted Answer

Among the given options, married filing separately and single taxpayers reach the highest marginal tax rate of 37% at the lowest taxable income level of $518,401. Surviving spouse and head of household have a higher standard deduction and wider tax brackets, which means they can earn more taxable income before reaching the 37% tax bracket. Married couples filing jointly have an even larger standard deduction and wider tax brackets, making it the most beneficial filing status for tax purposes.

Question 6

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 correct statement is "the taxpayer must have been married for at least one day during the year." There is no requirement that the taxpayer must have been married for at least two years.

Question 7

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

A surviving spouse does not need to have shared the same household with the decedent as of the date of death to qualify for this filing status.

Question 8

Tom and Alice were married on December 31 of last year.What is their filing status for last year?

Accepted Answer

Tom and Alice were married before the end of the year, so they can choose to file as married filing jointly or married filing separately. They cannot file as single, as they were married for the entire year. Option C and D are incorrect as they do not accurately reflect their filing status.

Question 9

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 daughter's dependent status over to her ex-spouse by filing the appropriate IRS form.What is Sally's filing status for the current year?

Accepted Answer

Sally qualifies as head of household since she has maintained a home for herself and a dependent child for more than half the year and is unmarried. Even though she signed over her daughter's dependency status to her ex-spouse, she still qualifies as head of household as long as the daughter lived with her for more than half the year.

Question 10

Divya is age 22 and a full-time student with $8,000 of income from part-time and summer jobs and $2,600 of interest and dividend income.The total cost of her support for the year is $15,000.Divya is not subject to the kiddie tax.

Accepted Answer

Since Divya is 22 years old, she is no longer considered a "kiddie" and therefore not subject to the kiddie tax. The fact that she has $10,600 of income does not change this.

Question 11

In October 2019,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 2019 and 2020 is,respectively

Accepted Answer

Joy and Paul are still legally married, but they are not living with each other since October 2019. Therefore, they cannot file a joint return. As Joy is the one supporting their children and paying the cost of maintaining their home, she qualifies for the head of household status. However, as she is still legally married, she cannot file as a single taxpayer. Thus, the best choice for Joy's filing status in 2019 and 2020 is Married Filing Separately and Head of Household.

Question 12

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 2019 taxable income is

Accepted Answer

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

Question 13

You may choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return.Which of the following facts would prevent you from being considered married for filing purposes?

Accepted Answer

If your divorce became final by the end of the tax year, you are considered unmarried for filing purposes.

Question 14

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 2019 taxable income is

Accepted Answer

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

Question 15

Edward,a widower whose wife died in 2016,maintains a household for himself and his 10-year-old daughter.Edward's most favorable filing status for 2019 is

Accepted Answer

Edward can qualify as head of household because he is unmarried, maintains a household for himself and his dependent child, and provides more than half of the household's support. The surviving spouse status is only available for the two years following the year of the spouse's death, so it is not applicable in this case. Single filing status does not take into consideration Edward's qualifying dependent child and may result in a higher tax liability. Married filing jointly is not applicable since Edward's spouse passed away.

Question 16

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

A father does not have to live in the same household as the taxpayer for the taxpayer to claim head of household filing status.

Question 17

Tobe is a 22-year-old college student with $5,000 of interest income and $6,000 of earned income.Kiddie tax will apply to him if

Accepted Answer

The answer of Tobe is a 22-year-old college student with...

Question 18

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 is

Accepted Answer

Dave can file as head of household because he is unmarried, provided more than half the cost of keeping up a home for the tax year, and has a qualifying person (his mother) who lived with him for more than half the year. Even though his mother is in a nursing home, she still counts as living with him if she lived in a facility which provides care for individuals who are unable to care for themselves due to physical, mental or emotional reasons.

Question 19

In 2016,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 2017,2018,and 2019,Leo's most advantageous filing status is,respectively

Accepted Answer

In 2017 and 2018, Leo qualifies as a surviving spouse, allowing him to use the married filing jointly rates. In 2019, he qualifies as head of household since he still supports his children.

Question 20

If a 13-year-old has earned income of $500 and interest and dividends of $2,500,all of the income can be reported on the parent's return.

Accepted Answer

The earned income of $500 can be reported on the parent's return, but the interest and dividends of $2,500 must be reported on a separate tax return for the 13-year-old, as it exceeds the limit for which a child's investment income can be reported on their parent's return.

Quiz 18: Determination of Tax