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Chapter 3 - Problems - Jan 16

Chapter 3 - Problems - Jan 16 - 1 Chapter 3 Problems...

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1 Chapter 3 – Problems Problem 31 – Standard Deductions for Dependents NOTE: all are dependents on someone else’s return Greater of 850 or Earned income + $300 but not to exceed regular standard deduction a) 850 vs. 5,100 + 300 = $5,400 but limited to $5,350 b) 850 vs. 3,600 + 300 = $3,900 c) 850 vs. 600 + 300 = $900 d) 850 vs. 500 + 300 = 800 so $850 e) 850 vs. 2,000 + 300 = 2,300 + 1,300 = $3,600 Problem 32 – Qualifying Child & Qualifying Relative a) Qualifying Child – can’t be Qualifying Relative due to the Gross Income Test b) Both QC and QR c) Qualifying Relative. A mother can’t be a Qualifying Child d) Both QC and QR e) Qualifying Relative. Can’t be Qualifying Child because of Abode Test f) Qualifying Relative g) Qualifying Relative h) Both i) Both j) Qualifying Relative. Can’t be Qualifying Child due to Abode Test Problem 35 – Number of Dependency Exemptions; QC & QR a) Three. Niece & son are qualifying children. The cousin is not a qualifying child since doesn’t satisfy the relationship test. However, the cousin is a qualifying relative since he lives is a member of the taxpayer’s household for the entire tax year.
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