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Chapter 04 Individual Income Tax Overview, Exemptions, and Filing Status

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Question;Chapter 04;Individual Income Tax Overview, Exemptions, and Filing;Status;True / False Questions;1. Relative;to for AGI deductions, from AGI deductions tend to relate to items that are;more personal in nature.;True False;2. Taxpayers;need not include an income item in gross income unless there is a specific tax;provision requiring the taxpayer to include the income item in gross income.;True False;3. The;standard deduction amount for married filing separately taxpayers (MFS) is less;than the standard deduction amount for married filing jointly taxpayers.;True False;4. Taxpayers;are generally allowed to claim deductions for expenditures unless a specific;tax provision indicates the expenditure is not deductible.;True False;5. From AGI;deductions are generally more valuable to taxpayers than for AGI deductions.;True False;6. From AGI;deductions are commonly referred to as deductions "below the line.;True False;7. For AGI;deductions are commonly referred to as deductions "below the line.;True False;8. For AGI;deductions are commonly referred to as deductions "above the line.;True False;9. Itemized;deductions and the standard deduction are deductions from AGI but deductions;for personal and dependency exemptions are deductions for AGI.;True False;10. The;standard deduction amount varies by filing status.;True False;11. Taxpayers;are allowed to deduct more for each personal exemption they claim than for each;dependency exemption they claim.;True False;12. A personal;automobile is a capital asset.;True False;13. The;character of income determines the rate at which the income is taxed.;True False;14. Inventory;is a capital asset.;True False;15. Qualified;dividends are taxed at the same rate as ordinary income.;True False;16. Certain;types of income are taxed at a lower rate than ordinary income.;True False;17. In;addition to the individual income tax, individuals may be required to pay taxes;imposed on tax bases other than the individual's regular taxable income.;True False;18. Tax;credits reduce taxable income dollar for dollar.;True False;19. Tax;credits are generally more valuable than tax deductions because tax credits;reduce a taxpayer's gross tax liability dollar for dollar while tax deductions;do not.;True False;20. Taxpayers;may prepay their tax liability through withholdings and through estimated tax;payments.;True False;21. In certain;circumstances, a taxpayer who provides less than half the support of another;may still be able to claim a dependency exemption for that person as a;qualifying relative.;True False;22. A child;who is her parents' qualifying child can claim a personal exemption for herself;as long as her parents choose not to claim her as a dependent.;True False;23. A taxpayer;who is claimed as a dependent on another's tax return may not claim any;personal or dependency exemptions on his or her tax return.;True False;24. Anna is a;qualifying child of her parents. However, she was recently married. Anna and;her husband filed a joint return. If they had filed separately, Anna would have;owed no taxes, though her husband would have owed just $5. Because Anna herself;owed no taxes, her parents can still claim her as a dependent.;True False;25. To be;considered a qualifying child of a taxpayer, the individual must be the son or;daughter of the taxpayer.;True False;26. For purposes;of the qualifying child residence test, a child's temporary absence from the;taxpayer's home for attending school full-time is counted as though the child;lived in the taxpayer's home during the absence.;True False;27. An;individual may never be considered as both a qualifying relative and a;qualifying child of the same taxpayer.;True False;28. An;individual may be considered as a qualifying child of her parents and a;qualifying child of her grandparents in the same year.;True False;29. An;individual may meet the relationship test to be a taxpayer's qualifying;relative even if the individual has no family relationship with the taxpayer.;True False;30. When;determining whether a child meets the qualifying child support test for the;parents, scholarships earned by the child do not count as self support provided;by the child.;True False;31. When;determining whether a child meets the qualifying child support test for the;child's grandparents, scholarships earned by the child do not count as self;support provided by the child.;True False;32. 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.;True False;33. An;individual receiving $5,000 of tax exempt income during the year could qualify;as a qualifying child of another taxpayer but could not qualify as a qualifying;relative of another taxpayer.;True False;34. The;relationship requirement is more broadly defined (includes more relationships);for a qualifying relative than it is for a qualifying child.;True False;35. The;relationship requirement for qualifying relative includes cousins.;True False;36. The;relationship requirement for qualifying relative requires the potential;qualifying relative to have a family relationship with the taxpayer.;True False;37. The test;for qualifying children includes an age restriction but the test for qualifying;relative does not.;True False;38. The test;for a qualifying child includes a gross income restriction while the test for;qualifying relative does not.;True False;39. If a;taxpayer does not provide more than half the support of a child, that child;cannot qualify as the taxpayer's qualifying child.;True False;40. To;determine filing status, a taxpayer's marital status is determined on January 1;of the tax year in question.;True False;41. It is;generally more advantageous from a tax perspective for a married couple to file;separately than it is for them to file jointly.;True False;42. It is;generally more advantageous from a nontax perspective for a married couple to;file separately than it is for them to file jointly.;True False;43. Jeremy and;Annie are married. During the year Jeremy dies. When Annie files her tax return;for the year in which her husband dies, she may file under the married filing;jointly filing status even if she does not remarry.;True False;44. Jennifer;and Stephan are married at year end and they file separate tax returns. If;Jennifer itemizes deductions on her return, Stephan must also itemize;deductions on his return even if his itemized deductions don't exceed his;standard deduction.;True False;45. Bonnie and;Ernie file a joint return. Bonnie works and receives income during the year but;Ernie does not. If the couple files a joint tax return, Ernie is responsible;for paying any taxes due if Bonnie is unable to pay the taxes.;True False;46. Eric and;Josephine were married in year 1. In year 2, Eric dies. The couple did not have;any children. Assuming Josephine does not remarry, she may file as a qualifying;widow in year 3.;True False;47. Taxpayers;who file as qualifying widows/widowers are treated exactly the same for tax;purposes in all respects as taxpayers who are married filing jointly for tax;purposes.;True False;48. A taxpayer;may qualify for the head of household filing status even if she does not have;any dependent children.;True False;49. A taxpayer;may qualify for the head of household filing status if she has no dependent;children but pays more than half of the cost of maintaining a separate;household for her dependent mother and/or father.;True False;50. 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.;True False;51. If an;unmarried taxpayer is able to claim a dependency exemption for another;individual, the taxpayer is automatically eligible for the head of household;filing status.;True False;52. Charles;who is single, pays all of the costs of maintaining a home for himself and;Damarcus. Charles and Damarcus have no family relationship but Damarcus lives;with Charles for the entire year. Damarcus qualifies as a qualifying relative;for Charles (Charles claims a dependency exemption for Damarcus on his tax;return). Charles qualifies for head of household filing status.;True False;53. In certain;circumstances, a married taxpayer who files separately may qualify for the head;of household filing status.;True False;54. If no one;qualifies as the dependent of an unmarried taxpayer, the unmarried taxpayer may;still be able to qualify for the head of household filing status.;True False;Multiple Choice Questions;55. The income;tax base for an individual tax return is;A. Realized;income from whatever source derived.;B. Gross;income.;C. Adjusted;gross income.;D. Adjusted;gross income minus from AGI deductions.;56. Which of;the following series of inequalities is generally most accurate?;A. Gross;income? adjusted gross income? taxable income;B. Adjusted;gross income? gross income? taxable income;C. Adjusted;gross income? taxable income? gross income;D. Gross;income? taxable income? adjusted gross income;57. Which of;the following statements regarding realized income is true?;A. Taxpayers;need not include realized income in gross income unless a specific provision of;the tax code requires them to do so.;B. Realized;income requires some type of transaction or exchange with a second party.;C. Once;income is realized it may not be excluded from gross income.;D. None of;these statements is true.;58. Which of;the following statements regarding exclusions and/or deferrals is false?;A. Exclusions;are favorable because taxpayers never pay tax on income that is excluded.;B. Interest;income from municipal bonds is excluded from gross income.;C. Deferrals;are income items taxpayers realize in one year but include in gross income in a;subsequent year.;D. An income;item need not be realized in order to qualify as an exclusion item.;59. Sally;received $50,000 of compensation from her employer and she received $400 of;interest from a corporate bond. What is the amount of Sally's gross income from;these items?;A. $0;B. $400;C. $50,000;D. $50,400;60. Lebron;received $50,000 of compensation from his employer and he received $400 of;interest from a municipal bond. What is the amount of Lebron's gross income;from these items?;A. $0;B. $400;C. $50,000;D. $50,400;61. Joanna;received $60,000 compensation from her employer, the value of her stock in ABC;company appreciated by $5,000 during the year (but she did not sell any of the;stock), she received $30,000 of life insurance proceeds from the death of her;husband. What is the amount of Joanna's gross income from these items?;A. $60,000;B. $65,000;C. $95,000;D. $97,000;62. Which of;the following statements regarding tax deductions is false?;A. Taxpayers;are not entitled to any deductions unless specific provisions in the tax code;allow the deductions.;B. Deductions;can be labeled as deductions above the line or deductions below the line.;C. From AGI;deductions tend to be associated with business activities while for AGI;deductions tend to be associated with personal activities.;D. The;standard deduction is a from AGI deduction.;63. Which of;the following statements regarding for AGI tax deductions is true?;A. Taxpayers;subtract for AGI deductions from gross income to determine AGI.;B. A;taxpayer may deduct for AGI deductions only if the deductions exceed the;taxpayer's standard deduction amount.;C. A;taxpayer may deduct for AGI deductions only if the deductions exceed the taxpayer's;deductible exemption amounts.;D. A;taxpayer may deduct for AGI deductions only if the deductions exceed the;taxpayer's itemized deductions.;64. All of the;following are for AGI deductions except;A. Moving;expenses.;B. Rental;and royalty expenses.;C. Business;expenses for a self-employed taxpayer.;D. Charitable;contributions.;65. Which of;the following is NOT a from AGI deduction?;A. Standard;deduction;B. Itemized;deduction;C. Personal;exemption;D. None of;these. All of these are from AGI deductions;66. Which of;the following is not an itemized deduction?;A. Alimony;paid;B. Medical;expenses;C. Personal;property taxes paid on a personal use automobile;D. Charitable;contributions;67. Which of;the following shows the correct relationship among standard deduction amounts;for the respective filing statuses?;A. Single;Head of Household > Married Filing Jointly;B. Married;Filing Jointly > Married Filing Separately > Head of Household;C. Married;Filing Jointly > Head of Household > Single;D. Head of;Household > Married Filing Separately > Married Filing Jointly;68. Which of;the following statements regarding exemptions is correct?;A. Personal;exemptions are more valuable than dependency exemptions.;B. Taxpayers;filing a married filing joint return are limited to two exemptions on their tax;returns.;C. Exemption;amounts are considered to be for AGI deductions.;D. Taxpayers;subtract exemption deductions from adjusted gross income in determining taxable;income.;69. Which of;the following types of income are not considered ordinary income?;A. Compensation;income;B. Net;long-term capital gains (in excess of short-term capital losses);C. Qualified;dividend income;D. Both;compensation income and qualified dividend income;E. Both net;long-term capital gains (in excess of short-term capital losses) and qualified;dividend income;70. All of the;following represents a type or character of income except;A. Tax;exempt;B. Capital;C. Qualified;dividend;D. Normal;71. Which of;the following statements is true;A. Income;character determines the tax year in which the income is taxed.;B. Income;character depends on the taxpayer's filing status.;C. Qualified;dividend income is taxed at a lower rate than the same amount of ordinary;income.;D. A;taxpayer selling a capital asset at a gain recognizes ordinary income.;72. Which of;the following statements regarding tax credits is true?;A. Tax;credits reduce taxable income dollar for dollar.;B. Tax;credits provide a greater tax benefit the greater the taxpayer's marginal tax;rate.;C. Tax;credits reduce taxes payable dollar for dollar.;D. None of;these statements is true.;73. Jamison's;gross tax liability is $7,000. Jamison had $2,000 of available credits and he;had $4,000 of taxes withheld by his employer. What is Jamison's taxes due (or;taxes refunded) with his tax return?;A. $5,000;taxes due.;B. $1,000;taxes due.;C. $1,000;tax refund.;D. $3,000;taxes due.;74. Madison's;gross tax liability is $9,000. Madison had $3,000 of tax credits available and;she had $8,000 of taxes withheld by her employer. What is Madison's taxes due;(or taxes refunded) with her tax return?;A. $0 taxes;due and $0 tax refund.;B. $6,000;taxes due.;C. $2,000;tax refund.;D. $1,000;taxes due.;75. Which of;the following statements regarding personal and dependency exemptions is false?;A. A married;couple filing jointly may claim two personal exemptions.;B. To;qualify as a dependent of another, an individual must be a resident of the;United States.;C. An;individual who qualifies as a dependent of another taxpayer may not claim a;personal exemption.;D. An;individual cannot qualify as a dependent of another as a qualifying relative;taxpayer if the individual's gross income exceeds the exemption amount.;76. Which of;the following statements regarding personal and dependency exemptions is true?;A. To;qualify as a dependent of another, an individual must be a resident of the;United States.;B. To;qualify as a dependent of another, an individual may not file a joint return;with the individual's spouse under any circumstance.;C. To;qualify as a dependent of another, an individual must have a family;relationship with the other person.;D. To;qualify as a dependent of another, an individual must be either a qualifying;child or a qualifying relative of the other person.;77. All of the;following are tests for determining qualifying child status except the ______.;A. gross;income test;B. age test;C. support;test;D. residence;test;78. Which of;the following relationships does NOT pass the relationship test for a;qualifying child?;A. Stepsister's;daughter;B. Half-brother;C. Cousin;D. Stepsister;79. Anna is a;21-year-old full-time college student (she plans on returning home at the end;of the school year). Her total support for the year was $34,000 (including;$8,000 of tuition). Anna covered $12,000 of her support costs out of her own;pocket (from savings, she did not work) and she received an $8,000 scholarship;that covered all of her tuition costs. Which of the following statements;regarding who is allowed to claim Anna as an exemption is true?;A. Even if;Anna's parents provided the remaining $14,000 of support for Anna ($34,000;minus $12,000 minus $8,000), they would not be able to claim her as a;dependent.;B. Even if;Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000;minus $12,000 minus $8,000) they would not be able to claim her as a dependent.;C. Because;she provided more than half her own support, Anna may claim a personal;exemption for herself.;D. None of;these statements is true.;80. 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 a dependency exemption for Charlotte?;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.;81. 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 an exemption for Jane in year 1 assuming the neighbor pays for all of;Jane's support?;A. No, Jane;must include her neighbor's gift as income and thus fails the gross income test;for a qualifying relative.;B. Yes;because she is a full-time student and does not provide more than half of her;own support, Jane is considered her parent's qualifying child.;C. No, Jane;is too old to be considered a qualifying child and fails the support test of a;qualifying relative.;D. Yes;because she is a student, her absence is considered as "temporary.;Consequently she meets the residence test and is a considered a qualifying;child of the Bennetts.;82. Sheri and;Jake Woodhouse have one daughter, Emma, who is 16 years old. They also have;taken in Emma's friend, Harriet, who has lived with them since February of the;current year and is also 16 years of age. The Woodhouses have not legally;adopted Harriet but Emma often refers to Harriet as "her sister." The;Woodhouses provide all of the support for both girls, and both girls live at;the Woodhouse residence. Which of the following statements is true regarding;the dependency exemptions (and the reason for the exemptions) Sheri and Jake;may claim for the current year for these girls?;A. One;exemption for their daughter Emma as a qualifying child but no exemption for;Harriet.;B. One;exemption for Emma as a qualifying child and one exemption for Harriet as a;qualifying child.;C. One;exemption for Emma as a qualifying child and one exemption for Harriet as a;qualifying relative.;D. None of;these statements is true.;83. Char and;Russ Dasrup have one daughter, Siera, who is 16 years old. In November of last;year, the Dasrup's took in Siera's 16 year old friend, Angela, who has lived;with them ever since. The Dasrup's have not legally adopted Angela but Siera;often refers to Angela as "her sister." The Dasrup's provide all of;the support for both girls, neither girl receives any income during the year;and both girls live at the Dasrup's residence. Which of the following;statements is true regarding the dependency exemptions (and the reason for the;exemptions) Char and Russ may claim for the current year for these girls?;A. One;exemption for their daughter Siera as a qualifying child but no exemption for;Angela.;B. One;exemption for Siera as a qualifying child and one exemption for Angela as a;qualifying child.;C. One;exemption for Siera as a qualifying child and one exemption for Angela as a;qualifying relative.;D. None of;these statements is true.;84. In order;to be a qualifying relative of another, an individual's gross income must be;less than ________.;A. the;applicable standard deduction amount;B. the;personal and dependency exemption amount;C. one-half;of the individual's support;D. None of;these;85. 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 rest 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?;A. Anne is a;qualifying child of Catherine.;B. Anne is;not a qualifying child of Catherine because she fails the gross income test.;C. Anne is;not a qualifying child of Catherine because she fails the residence test.;D. Anne is;not a qualifying child of Catherine because she fails the support test.;86. Katy has;one child, Dustin, who is 18 years old at the end of the year. Dustin lived at;home for three months during the year before leaving home to work full-time in;another city. During the year, Dustin earned $15,000. Katy provided more than;half of Dustin's support for the year. Which of the following statements;regarding whether Katy may claim Dustin as a dependent for the current year is;accurate?;A. Yes;Dustin is a qualifying child of Katy.;B. Yes;Dustin fails the residence test for a qualifying child but he is considered a;qualifying relative of Katy.;C. No;Dustin fails the support test for a qualifying relative.;D. No;Dustin fails the gross income test for a qualifying relative.;87. William;and Charlotte Collins divorced in November of year 1. William moved out and;Charlotte remained in their house with their 10-month-old daughter Autumn.;Diana, Charlotte's mother, lived in the home and acted as Autumn's nanny for;all of year 1. William provided 70% of Autumn's support, Diana provided 20%;and Charlotte provided 10%. When the time came to file their tax returns for;year 1, William, Charlotte, and Diana each wanted to claim Autumn as a;dependent. Their respective AGIs for year 1 were $50,000, $35,000, and $52,000.;Who has priority to claim Autumn as a dependent?;A. William;B. Charlotte;C. Diana;D. They must;negotiate amongst themselves.;88. All of the;following are tests for determining qualifying relative status except ______.;A. relationship;test;B. gross;income test;C. support;test;D. residence;test;89. Which of;the following statements regarding the difference between the requirements for;a qualifying child and the requirements for a qualifying relative is false?;A. The;relationship requirement is more broadly defined (more inclusive) for qualifying;relatives than for qualifying children.;B. Qualifying;children are subject to age restrictions while qualifying relatives are not.;C. The;support test for qualifying relatives focuses on the support the potential;dependent self provides while the support test for qualifying children focuses;on the support the taxpayer provides.;D. Qualifying;relatives are subject to a gross income restriction while qualifying children;are not.;90. Earl and;Lawanda Jackson have been married for 15 years. They have no children. Ned, who;is an old friend from high school, has been living with the Jacksons during the;current year. Which of the following is a true statement regarding whether the;Jacksons can claim a dependency exemption for Ned in the current year?;A. If Ned;moved into the Jackson's home in June and he lived there for the remainder of;the year, he may qualify as the Jackson's qualifying relative.;B. Assume;that Ned originally moved into the Jackson's home two years ago and he has;lived there ever since. If, this year, Ned earned $3,000 at a part time job and;he received $5,000 in municipal bond interest, he may qualify as the Jackson's;dependent as long as the Jacksons provided more than half his support.;C. If Ned;lived in the Jackson's home for the entire year, he will qualify as their;dependent no matter who provided his support.;D. If Ned is;over 19 or he is not a full-time student, he cannot qualify as the Jackson's;dependent.;91. Michael;Diane, Karen, and Kenny provide support for their mother Janet who is 75 years;old. Janet lives by herself in an apartment in Los Angeles. Janet's gross;income for the year is $3,000. Janet provides 10% of her own support, Michael;provides 40% of Janet's support, Diane provides 8% of Janet's support, Karen;provides 10% of Janet's support, and Kenny provides the remaining 32% of;Janet's support. Under a multiple support agreement, who may claim a dependency;exemption for Janet as a qualifying relative?;A. Michael;Diane, Karen, and Kenny;B. Michael;Karen, and Kenny;C. Michael;and Kenny;D. Michael;92. Filing;status determines all of the following except;A. the;applicable standard deduction amount.;B. the;appropriate tax rate schedule or tax table.;C. the standard;amount of each personal and dependency exemption.;D. the AGI;threshold for reductions in certain tax benefits.;93. Which of;the following is not a filing status?;A. Head of;household;B. Unmarried;C. Qualifying;widow or widower;D. Married;filing jointly;94. Lydia and;John Wickham filed jointly in year 1. They divorced in year 2. In late year 2;the IRS discovered that the Wickham's underpaid their year 1 taxes by $2,000.;Both Lydia and John worked in year 1 and received equal income but John had;$2,000 less tax withheld than did Lydia. Who is legally liable for the tax;underpayment?;A. Lydia.;B. John.;C. Both;Lydia and John.;D. Neither;Lydia nor John.;95. In June of;year 1, Edgar's wife Cathy died and Edgar did not remarry during the year. What;is his filing status for year 1 (assuming they did not have any dependents)?;A. Married;filing jointly;B. Single;C. Qualifying;widower;D. Head of;household;96. In June of;year 1, Eric's wife Savannah died. Eric did not remarry during year 1, year 2;or year 3. Eric maintains the household for his dependent daughter Catherine in;year 1, year 2, and year 3. Which is the most advantageous filing status for;Eric in year 2?;A. Head of;household.;B. Qualifying;widower.;C. Single.;D. Married;filing separately.;97. Which of;the following statements about a qualifying person for head of household filing;status is true?;A. One;individual (who is a qualifying person) may qualify more than one taxpayer for;head of household filing status.;B. The;taxpayer is required to live with a qualifying person for the entire year in;order to qualify for head of household filing status.;C. A;taxpayer's parent cannot be a qualifying person for purposes of determining;head of household filing status.;D. A;qualifying person must have a family relationship with the taxpayer in order;for the qualifying person to qualify the taxpayer for head of household filing;status.;98. In June of;year 1, Jake's wife Darla died. The couple did not have any children and Jake;did not remarry in year 1 or year 2. Which is the most favorable filing status;for Jake in year 2?;A. Married;filing separately;B. Single;C. Head of;household;D. Qualifying;widower;99. Jan is;unmarried and has no children, but she provides all of the financial support;for her mother, who lives in an apartment across town. Jan's mother qualifies;as Jan's dependent. Which is the most advantageous filing status available to;Jan?;A. Single;B. Head of;household;C. Qualifying;individual;D. Surviving;single;100. Jane is;unmarried and has no children, but provides more than half of her mother's;financial support. Jane's mother lives in an apartment across town and has a;part-time job earning $5,000 a year. Which is the most advantageous filing;status available to Jane?;A. Single;B. Head of;household;C. Qualifying;individual;D. Surviving;single;101. In April of;year 1, Martin left his wife Marianne. While the couple was apart, they were;not legally divorced. Marianne found herself having to financially provide for;the couple's only child (who qualifies as Marianne's dependent) and to pay all;the costs of maintaining the household. When Marianne filed her tax return for;year 1, she filed a return separate from Martin. What is Marianne's most;favorable filing status for year 1?;A. Married;filing separately.;B. Single.;C. Head of;household.;D. Qualifying;widow.;102. 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?;A. No matter;the post separation residence(s) of the children, both spouses must file as;married filing separately.;B. No matter;the post separation residence(s) of the children, Martin must file as married;filing separately but Marianne may qualify to file as head of household.;C. No matter;the post separation residence(s) of the children, Marianne must file as married;filing separately but Martin may qualify to file as head of household.;D. Depending;on the post separation residence(s) of the children, both spouses may qualify;to file as head of household.;103. Which of;the following is not a requirement for a married taxpayer to be treated as;unmarried at the end of the year for filing status purposes?;A. The;taxpayer claims a dependency exemption for a child.;B. The;taxpayer pays more than half the costs of maintaining his or her home for the;entire year and the home is the principal residence for a dependent qualifying;child for more than half the year.;C. The;taxpayer files a tax return separate from the other spouse.;D. The;spouse does not live in the taxpayer's home at all during the year.;104. For filing;status purposes, the taxpayer's marital status is determined at what point;during the year?;A. the;beginning of the year;B. the end;of the year;C. the;middle of the year;D. None of;these;105. In year 1;Harold Weston's wife died. Since her death, he has maintained a household for;their son Frank (age 3), his qualifying child. Which is the most advantageous;filing status available to Harold in year 4?;A. Married;filing joint;B. Surviving;spouse;C. Qualifying;widower;D. Head of;household;106. Mason and;his wife Madison have been married for five years. Jaxon, who is 18 years old;and unrelated to Mason and Madison, has been living with Mason and Madison for;the last two years. In May of year 1, Mason and Madison divorced. Mason and;Jaxon stayed in the home and Madison moved out. During year 2, Mason provided;all of Jaxon's support and Jaxon lived in the home for all of year 2. Jaxon did;not earn any income during year 2. What is Mason's most favorable filing status;for year 2?;A. Single;B. Married;filing separately;C. Surviving;spouse;D. Head of;household;107. 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?;A. Single;B. Qualifying;widower;C. Head;household;D. Married;filing separately;108. Jasmine and;her husband Arty have been married for 25 years. In May of this year, the;couple divorced. During the year, Jasmine provided all the support for herself;and her 22-year-old child Dexter who lived in the same home as Jasmine for the;entire year. Dexter is employed full-time, earning $29,000 this year. What is;the Jasmine's most favorable filing status for the year?;A. Single;B. Married;filing separately;C. Surviving;spouse;D. Head of;household;Ess

 

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