Qualifying relative - Study guides, Class notes & Summaries

H&R Block Final review|Graded A+ Tony (28) and Adam (27) are cousins and lived in the same home throughout 2017. Adam only earned $2,500 in 2017. Tony earned $25,000 in 2017. What test does he meet? Adam meets the relationship and member of household test for Tony, since Adam lived with Tony the entire year. Tony may be able to claim Adam as a qualifying relative dependent. Note: Being cousins alone will not meet the relationship test for qualifying relative, because a cousin is not list...

HR Block 2023 Scenarios Exam Questions and Answers Carolyn earned $52,000 as a full-time employee in 2018. Due to procrastination and denial, she did not prepare her 2018 income tax return until June 23, 2019. Carolyn did not file the return until August 1, 2019. She did not request an extension of time to file. Her return showed a balance due of $1,500. What is her penalty? - ANS ️️ The IRS assesses a late filing penalty for four months. Carolyn's penalty is $300 [5% x 4 x $1,500]. ...

HRB FINAL EXAM |Complete Questions with 100% Correct Answers What is the Difference between earned income and unearned income? Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions alimony, unemp...

Solution Manual with Appendix For Income Tax Fundamentals 2023, 41st Edition By Gerald E. Whittenburg, Steven Gill-Group 1 – Multiple Choice Questions 1-1 1. D The income tax includes elements of social and economic policy (LO 1.1) 2. C The income tax was authorized by the 16th Amendment in 1913 (LO 1.1) 3. C The 1040A and 1040-EZ no longer exist and the 1120 is for corporations (LO 1.2) 4. D Partnerships use Form 1065 to report income tax information. A partner will report ...

H & R Block Income Tax Final Exam Review (Latest 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A Q: For MACRS purposes, you need to divide real property into two categories. What are they? Answer: Land, which is not depreciated, and structures, which are depreciated. Q: For tax purposes, when is a person's marital status determined? Answer: On the last day of the tax year, or the date of death. Q: How are deductible property expenses deter...

1. Ethan claimed the Earned Income Tax Credit for the past several years. The IRS audited his returns and disallowed the EITC in 2019. The IRS also found that Ethan claimed the EITC due to reckless disregard of the EITC rules. For how many tax years is Ethan barred from claiming the EITC? Ethan cannot claim the EITC for: A. 1 year. B. 2 years. C. 3 years. D. 4 years. - Answer-1. The answer is B. Ethan will not be allowed to claim the credit for at least two tax years. There are special r...

H&R Block 2018 Scenarios Exam Questions With Solutions Rhonda married Jake in 2018. Jake has not been paying on his student loans and they are in default. He owes a few thousand dollars on them still. Rhonda is not legally obligated to pay his student loans. She worked all year and had income tax withheld. She wants to receive her portion of their tax refund. What should she do? Rhonda would file Form 8379 with their tax return to request her injured spouse allocation. Ron (35) and S...

Some types of income do not need to be reported anywhere on a federal tax return. This includes all of the following EXCEPT: A.) Most medical insurance proceeds B.) Worker's compensation paid to an employee who was injured on the job. C.) Welfare benefits D.) Unemployment compensation correct answer: D.) Unemployment compensation Which of the following is considered earned income? A.) Interest from a bank account. B.) Unemployment compensation C.) Income from farming D.) Gambling Wi...

LSU ACCT 3221 Chapter 2 | Questions and Answers True/False: The federal individual income tax returns are the 1040ES, 1040A and 1040. False True/False: The tax code defines adjusted gross income (AGI) as gross income minus a list of permitted deductions. True True/False: The amount of tax liability for a taxpayer depends on many factors, including the filing status of the taxpayer. True True/False: A married couple can file a joint return if they are married and if both have earned income. Fal...

H&R Block Midterm Review Questions with Complete Solutions Which of the following is considered earned income? C a) Interest from a bank b) Unemployment compensation c) Income from farming d) Gambling winnings The tax on income that comes entirely from wages under $100,000 is determined according to the: A a) Tax Tables b) Tax Computation Worksheet c) Qualified Dividends and Capital Gain Tax Worksheet d) Schedule D Tax Worksheet Which of the following shows these numbers round...