Question 1

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. For example, a qualifying child must be related to the taxpayer, must be under the age of 19 (or 24 if a full-time student), and must live with the taxpayer for more than half of the year. A qualifying relative, on the other hand, can be any age and does not have to live with the taxpayer, but must meet certain income and support requirements.

Question 2

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 tax year 2020. Therefore, an individual with a gross income of $6,000 would not qualify as a qualifying relative but could still meet the other criteria to be considered a qualifying child.

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

The age restriction is a requirement for a dependent to be considered a qualifying child, but not for a qualifying relative.

Question 5

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

Accepted Answer

While being the son or daughter of the taxpayer is one way to qualify as a dependent, there are other criteria that must also be met such as age, relationship, residency, support, and citizenship.

Question 6

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 does not require a family relationship, but rather considers if the individual lives with the taxpayer for the entire year or if certain support requirements are met.

Question 7

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

The test for a qualifying relative does not include an income limit related to tax-exempt income; it focuses on the gross income test, which for 2023 is $4,500 or less of taxable income. Tax-exempt income is not considered in this calculation, so having $6,000 of tax-exempt income does not automatically disqualify someone from being a qualifying relative.

Question 8

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 may include relationships such as siblings, parents, grandparents, and others, while a qualifying child is limited to specific relationships such as a son, daughter, stepchild, adopted child, or foster child.

Question 9

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 10

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

This is possible if the grandparents meet all the requirements for claiming a qualifying child, such as providing more than half of her support and meeting the relationship, age, and residency tests. However, only one person can claim the child as a dependent in a given year, so the parents and grandparents would need to coordinate and decide who will claim her.

Question 11

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

This is true for certain situations, such as if the other person's gross income is below a certain threshold and they meet other qualifying relative criteria.

Question 12

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 are not considered as self-support provided by the child for the purpose of determining whether the child meets the qualifying child support test for the parents.

Question 13

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

A child can still qualify as a taxpayer's qualifying child if the taxpayer does not provide more than half of the child's support, as long as other criteria such as relationship, age, residency, and joint return tests are met.

Question 14

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 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

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

In most cases, it is more beneficial for a married couple to file jointly. This is because the standard deduction and certain tax credits are typically higher for couples filing jointly. However, there may be situations where filing separately could be advantageous, such as if one spouse has a high amount of medical expenses or if one spouse owes back taxes. It is recommended that couples consult with a tax professional to determine the best filing status for their specific situation.

Question 17

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 18

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

If someone is claimed as a dependent on another person's tax return, they cannot claim any dependents on their own tax return.

Question 19

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 20

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, "Temporary absences for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time lived at home." Therefore, a child's temporary absence to attend school full time is counted as time lived at home for the purpose of the qualifying child residence test.

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