Exam (elaborations)
TAX4001 - Exam 3 (FINAL) (1)
- Course
- Institution
TAX4001 - Exam 3 (FINAL) (1)
[Show more]
Seller
Follow
topgradesdr
Reviews received
Content preview
TAX4001 - Exam 3 (FINAL)True or false? An individual who is married on December 31st can elect to file a joint
return. - ANS-True.
Two individuals got married on January 1st and divorced on December 30th. What is
their filing status? - ANS-Single.
A married couple has 1 dependent child. The husband passed away this year. What is
the filing status for the wife for this year? What about the year afterwards? -
ANS-Married filing jointly for this year and next year.
=====Explanation=======
Surviving spouse for the first two taxable years.
This year = married filing jointly.
year after = married filing jointly.
An individual who is unmarried on the last day of the year has a filing status of
_____________. - ANS-Single.
Mrs. and Mrs. White provide a home not only for their 15-year old son Jake, but also for
their 17-year old niece Karen, who has lived with her aunt and uncle for 4-years. This
year, both Jake and Karen had jobs, and their earnings represented less than 50% of
their financial support for the year. Are Jake and Karen considered dependents? -
ANS-Yes.
=====Explanation=======
The qualifications for a dependent are:
1) Dependent can't provide more than 1/2 of their own financial support for the year.
2) Must live in same place as the taxpayer for more than 1/2 of the year.
3) Dependent must be less than 19-years old, or if they're a student, they have to be
less than 24-years old.
, 4) The dependent can't file a joint tax return with a spouse (unless it was filed only to
refund a claim).
Lastly, it's important to note that dependents can be the taxpayer's children,
descendants, sisters/brothers, and their sisters/brothers descendants (nieces and
nephews). So dependents aren't limited to just the taxpayer's children -- it's actually a
big category.
Mr. Wiggen provides a home for his 23-year old son Richard, and Richard's 19-year old
wife Colleen. Richard is a full-time student at a local university. Colleen earns the
minimum wage at her job, so Mr. Wiggen provides about 80% of the couple's financial
support. Richard and Colleen filed a joint income tax return this year only to receive a
refund. Are Richard and Colleen considered dependents? - ANS-Richard is a
dependent. Colleen is not.
=====Explanation=======
Richard meets the definition of qualifying child even though he is married. He is a
student less than 24-years old, and does not contribute more than 1/2 of his own
financial support for the year. He filed a joint tax return, but it was only for refund
purposes, so he can still qualify as a dependent.
What are the standard deduction amounts?
A) Married Filing Jointly
B) Surviving Spouse
C) Married Filing Separately
D) Head of Household
E) Single - ANS-A) $24,400
B) $24,400
C) $12,200
D) $18,350
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller topgradesdr. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now