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

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Question 71

True/False

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The relationship requirement is more broadly defined (includes more relationships)for a qualifying relative than for a qualifying child.

A) True
B) False

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Question 72

Multiple Choice

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Charlotte is the Lucas family's 22-year-old daughter.She is a full-time student at an out-of-state university but plans to return home when the school year ends.During the year, Charlotte earned $4,000 of income working part time.Her support totaled $30,000 for the year.Of this amount, Charlotte paid $7,000 with her own funds, her parents paid $14,000, and Charlotte's grandparents paid $9,000.Which of the following statements most accurately describes whether Charlotte's parents can claim Charlotte as a dependent?

A) Yes, Charlotte is a qualifying child of her parents.
B) No, Charlotte fails the support test for both qualifying children and qualifying relatives.
C) No, Charlotte does not pass the gross income test.
D) Yes, Charlotte is a qualifying relative of her parents.

E) A) and D)
F) A) and C)

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Question 73

Multiple Choice

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Char and Russ Dasrup have one daughter, Siera, who is 16 years old.In November of last year, the Dasrups took in Siera's 16-year-old friend Angela, who has lived with them ever since.The Dasrups have not legally adopted Angela but Siera often refers to Angela as her "sister." The Dasrups provide all of the support for both girls, neither girl receives any income during the year, and both girls live at the Dasrups' residence.Which of the following statements is true regarding whom Char and Russ may claim as dependents for the current year?

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: $\begin{array} { l r } \text { Item}&\text { Amount } \\\text { Ed's Salary } & 35,000\\\text { Jarie's Salary } & 70,000 \\\text { Muricipal bond interest income } &400 \\\text { Qualified business income } & 1,000 \\\text { Alimony paid for AGI deduction) } &( 7,000 ) \\\text { Real property tax (from AGI deduction) } & ( 10,000 ) \\\text { Charitable contributions (from AGI) } &( 15,000 ) \\\end{array}$ 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?

In April of Year 1, Martin left his wife, Marianne.The couple has two children under the age of 15.While the couple was apart, they were not legally divorced.Marianne remained in the home and paid all the costs of maintaining the home for the remainder of the year.Assuming the couple does not file jointly, which of the following statements regarding filing status is true?