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Exam 4: Individual Income Tax Overview,dependents,and Filing Status

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Question 31

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In certain circumstances,a married taxpayer who does not file a joint tax return with her spouse may qualify for the head of household filing status.

A) True
B) False

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Question 32

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Hannah,who is single,received a qualified dividend of $1,000.Hannah's marginal ordinary income tax rate is 32 percent.What amount of tax must she pay on the $1,000 dividend?

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$150 ($1,0...

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Question 33

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Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

Which of the following statements regarding tax credits is true?

Miguel,a widower whose wife died in Year 1,maintains a household for himself and his daughter,who qualifies as his dependent.Miguel did not remarry.What is the most favorable filing status that Miguel qualifies for in Year 3?

Which of the following relationships does NOT pass the relationship test for a qualifying child?

Taxpayers are allowed to claim a child tax credit for their qualifying children and certain other qualifying dependents.

Jane and Ed Rochester are married with a 2-year-old child,who lives with them and whom they support financially.In 2019,Ed and Jane realized the following items of income and expense: They also qualified for a $2,000 child tax credit.Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate).Finally,the 2019 standard deduction amount for MFJ taxpayers is $24,400. What is the couple's adjusted gross income?

Tax credits reduce taxable income dollar for dollar.

Which of the following types of income are not considered ordinary income?

In Year 1,the Bennetts' 25-year-old daughter,Jane,is a full-time student at an out-of-state university but she plans to return home after the school year ends.In previous years,Jane has never worked and her parents have always been able to claim her as a dependent.In Year 1,a kind neighbor offers to pay for all of Jane's educational and living expenses.Which of the following statements is most accurate regarding whether Jane's parents would be allowed to claim Jane as a dependent for Year 1,assuming the neighbor pays for all of Jane's support?

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

If an unmarried taxpayer provides more than half the support for a cousin who lives in the taxpayer's home for the entire year,the taxpayer will qualify for head of household filing status.

Itemized deductions and the standard deduction are deductions from AGI but the deduction for qualified business income is a deduction for AGI.

The income tax base for an individual tax return is:

An individual with gross income of $5,000 could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.

All of the following are for AGI deductions except:

Catherine de Bourgh has one child,Anne,who is 18 years old at the end of the year.Anne lived at home for seven months during the year before leaving home to attend State University for the remaining five months of the year.During the year,Anne earned $6,000 while working part time.Catherine provided 80 percent of Anne's support and Anne provided the rest.Which of the following statements regarding whether Anne is Catherine's qualifying child for the current year is correct?

In 2019,Brittany,who is single,cares for her father,Raymond.Brittany pays the bills relating to Raymond's home.She also buys groceries and provides the rest of his support.Raymond has no gross income.Brittany received $45,000 of salary from her employer during the year.Brittany reports $3,000 of itemized deductions.What is Brittany's taxable income?

Which of the following is not a filing status?