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Unformatted text preview: Basic Scenarios 1-1 The frst fve short scenarios are designed to measure key competencies related to dependency exemptions and related tax benefts. These frst fve scenarios do not require you to prepare a tax return. Read each scenario careFully and use your training and reFerence tools to answer the questions aFter the scenario. Basic Scenario 1: Elizabeth Ripon Interview Notes • Theresa, who is single, lost her job in 2009. She and her eight-year-old son Julian moved in with a Friend oF the Family, Elizabeth. Theresa and Julian lived there the entire year oF 2010. • Julian’s Father died in 2007. • Elizabeth paid all the cost oF keeping up her home. • Elizabeth, who is single, provided all oF Theresa’s and Julian’s support during 2010. • Elizabeth’s total earned income in 2010 was $42,000. • Neither Theresa nor Julian received any income in 2010. • Elizabeth, Theresa, and Julian are U.S. citizens and have valid social security numbers. Basic Scenario 1: Test Questions Directions Using your resource materials and the above interview notes, answer the Following questions. 1.1 Does Elizabeth qualiFy For Head oF Household fling status? a. Yes, because she provided over halF the cost oF keeping up her home. b. No, because she does not have a qualiFying person to use this fling status. 1.2 Whom can Elizabeth claim as dependents? a. Elizabeth cannot claim any dependents. b. She can only claim Theresa because Julian is Theresa’s qualiFying child. c. She can only claim Julian because oF the age requirements For dependency. d. She can claim both Julian and Theresa as dependents since they both meet the tests For qualiFying relative. 2010 6744 Test – Basic Course Basic Scenarios 1-2 Basic Scenario 2: Sarah Pope Interview Notes • Sarah is 23 years old, single, and a full-time student. • Sarah lived with her parents all year and did not pay rent or household bills. • Sarah did not provide over half of her own support. • In 2010, Sarah worked at a department store and earned $6,500, which was her total income for the year. • Sarah’s federal income tax withholding was $500. • Sarah and her parents are U.S. citizens and have valid social security numbers. Basic Scenario 2: Test Questions Directions Using your resource materials and the above interview notes, answer the following questions. 2.1 On Form 13614-C, Part I, question 13, Sarah checked the box “Unsure” if someone else could claim her as a dependent. What action should you take to determine if Sarah can claim her own personal exemption? a. Tell her to go home and ask her parents if they claimed her. b. Refer to Pub 4012, go over Table 1: Dependency Exemption for Qualifying Child, and explain that her parents would be entitled to claim her exemp- tion....
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This note was uploaded on 12/09/2011 for the course ACC 331 taught by Professor Sagel during the Spring '11 term at S. Alabama.
- Spring '11