CHAPTER 2 T - F MULTI CHOICE PRACTICE QUIZZES

CHAPTER 2 T - F MULTI CHOICE PRACTICE QUIZZES - 1. Jorge...

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Unformatted text preview: 1. Jorge and Shira have a child on December 30, 2010. The amount of the 2010 dependency exemption for the baby is: Your Answer: The couple is entitled to a full $3,650 dependency exemption for the newborn. Exemptions are not prorated for a partial year. 2. This year, Freda Kester was fully supported by the following persons: If a multiple support agreement exists, who may claim Freda as a dependent? Your Answer: Together Son, Daughter and Sister reach the >50% threshold, but of these family members, only Daughter and Sister provide > 10%, and they are eligible. The friend is not a family member and therefore not eligible. 3. When determining whether a dependent meets the support test, all of the following items are taken into account for total support except: Your Answer: 4. Travis, who is single, maintains a home in which he and his unmarried, 28-year-old cousin, Oliver, live for the entire year. Oliver has no income, and Travis supports him. Travis' filing status and number of exemptions are: Your Answer: Oliver qualifies as Travis' dependent (assuming he meets the gross income, joint return and citizenship tests) because he lives with him all year, and Travis provides his support. Oliver is not a "qualifying relative" for purposes of Head of Household status, so Travis will file as "Single." 5. Rowena Johnson contributes $5,000 to the support of her 18 year-old son. He earned $9,000 in wages last year and spent $8,000 on a car. He saved the rest. Rowena has contributed what percentage of her son's support? Your Answer: Only amounts actually spent towards support are counted. Capital items are counted in full in the year expended. The son has provided more than half of his own support and will not qualify as a dependent. 6. Oscar's wife, Judy, left him in early April and did not return. Oscar, who did not divorce Judy, remained the sole support of their infant son. What is Oscar's most favorable filing status assuming he does not want to file Married-Joint, and what is the number of exemptions he is allowed? Your Answer: Oscar qualifies as an abandoned spouse. 7. Tessa Rowe, single since her husband's death in 2008, provides a home for her fifteen-year-old daughter. What is Tessa's filing status for 2010? Your Answer: Tessa qualifies for the more favorable surviving spouse status because the current tax year is within two years after the death of her spouse and she is maintaining a household for a dependent child. The surviving spouse status will allow her to use the married filing for a dependent child....
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CHAPTER 2 T - F MULTI CHOICE PRACTICE QUIZZES - 1. Jorge...

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