Unit 02 - Determining Filing Status and Residency

True or false: For IRS purposes, temporary absences does not include detention in a juvenile facility.

False, per a list of temporary absences

True or false: For IRS purposes, temporary absences does not include hospitalization.

False, per a list of temporary absences

True or false: For IRS purposes, temporary absences does not include medical care.

False, per a list of temporary absences

True or false: For IRS purposes, temporary absences does not include vacation.

False, per a list of temporary absences

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home do not include home insurance.

False, per a list of valid and invalid head of household expenses

The general order of filing statuses providing the most benefits to least is: Married Filing Jointly, Qualifying Surviving Spouse, ______, Single, Married Filing Separately.

Head of Household

_______ is a filing status for unmarried taxpayers who have maintained a home for a qualifying person, such as a child or a parent.

Head of household

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home do not include transportation.

True

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home do not include vacations.

True

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home include food.

True

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home include home repairs.

True

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home include property taxes.

True

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home include rent.

True

True or false: Having a dependent cousin does not qualify a taxpayer for HOH filing status.

True

True or false: Having a dependent stepsibiling qualifies a taxpayer for HOH filing status.

True

True or false: If a taxpayer has a non-resident alien spouse and disregards her to file as HOH, she cannot be the qualifying person. There must be another dependent.

True

True or false: If a taxpayer's only dependent is a Registered Domestic Partner, he cannot file HOH status.

True

True or false: If a taxpayer's qualifying person is a dependent parent, the taxpayer can file as HOH even if the parent does not live with the taxpayer.

True

True or false: Spouses can file a joint return even if only one spouse had income.

True

True or false: The IRS recognizes common-law marriages.

True

True or false: To qualify for QSS filing, the taxpayer must have a qualified dependent.

True

True or false: Typically, a married couple will pay more tax on a combined basis when filing separately than they would by filing jointly.

True

True or false: Welfare payments are not considered amounts that the taxpayer provides to maintain a home.

True

True or false: It is possible for a married taxpayer to file as Head of Household.

True - if the taxpayer meets the requirements to be "considered unmarried"

"A taxpayer is considered single for the entire tax year if, on the last day of the tax year, he or she was: - _______ - Legally separated under a decree of divorce or separate maintenance - Legally divorced by the end of the year"

Unmarried

For a married taxpayer to be considered unmarried for HOH purposes, there are 4 requirements. One of them is to file a(n) ______ return from/with the other spouse.

separate

"A taxpayer is considered single for the entire tax year if, on the last day of the tax year, he or she was: - Unmarried - Legally ______ under a decree of divorce or separate maintenance - Legally divorced by the end of the year"

separated

"Taxpayers can file jointly if they are married as of December 31 and either: - Live together as married spouses - Live together in a common-law marriage recognized in the state where they now reside or in the state where the common law marriage began - Live apart but are not legally separated or divorced - Are _____ under an interlocutory (not final) divorce decree"

separated

"The MFS status is for taxpayers who are married and either: - Choose to file ______ returns - Do not agree to file a joint return"

separate

A special exception to the rule that married taxpayers cannot change filing status before the unextended deadline when amending returns is that a personal representative can change from a joint return, elected by the surviving spouse, to a separate return for the decedent for up to _____ after the filing deadline.

1 year

For each of the ___ years following the year of a spouse's death, the surviving spouse can use the Qualifying Surviving Spouse filing status if the survivor has a qualifying dependent and does not remarry.

2

To change from separate returns to a joint return, married taxpayers must file an amended return using Form 1040-X, and may do so at any time within ___ years from the due date of the separate returns.

3

There are ____ filing statuses.

5

The United States recognizes foreign marriages performed in ______, including same-sex marriages.

Canada

In general, a taxpayer's marital status on the date ______ determines their marital status for the entire year.

December 31

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home do not include mortgage interest.

False, per a list of valid and invalid head of household expenses

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home do not include utilities.

False, per a list of valid and invalid head of household expenses

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home include education.

False, per a list of valid and invalid head of household expenses

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home include life insurance.

False, per a list of valid and invalid head of household expenses

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home include medical treatment.

False, per a list of valid and invalid head of household expenses

True or false: A taxpayer cannot qualify for Head of Household if their dependent is their own parent.

False. A dependent parent qualifies.

True or false: Having a dependent stepchild does not qualify a taxpayer for HOH filing status.

False. A stepchild qualifies.

True or false: Federal law allows Registered Domestic Partners to file a joint return.

False. Currently, federal law does not allow them to.

True or false: A foster child does not qualify for HOH filing status even if placed in the home by a government agency.

False. Foster children count if placed in the home by a government agency.

True or false: For MFS filers, if one spouse itemizes deductions, the other can take the Standard Deduction.

False. If one itemizes, the other must too.

True or false: If a taxpayer's dependent parent dies early in the year, the taxpayer cannot file as HOH.

False. It only matters that the taxpayer provided more than half of the parent's expenses during the time s/he was alive that year.

True or false: The default filing status for a married couple is Married Filing Jointly.

False. MFJ must be elected, because both spouses must agree to sign a joint return.

True or false: Having a dependent niece or nephew does not qualify a taxpayer for HOH filing status.

False. Nieces and nephews qualify.

True or false: Married taxpayers can file Single or Head of Household.

False. They are only allowed to file MFJ or MFS.

True or false: A taxpayer may only file as HOH for a child who was born or died during the year if the child was alive for more than half the year.

False. They can file regardless of how long the baby was alive that year as long as they meet the other requirements.

True or false: If a child is born and dies so quickly that the parent was unable to get a Social Security number for the baby, the parent would be unable to qualify as HOH.

False. They can still qualify for HOH as long as they meet the other requirements.

True or false: If a taxpayer is eligible to use more than one filing status, they must use the one that results in the highest tax.

False. They can use whichever they want, but should use the one that results in the lowest tax.

A qualifying surviving spouse receives the same standard deduction and uses the same tax brackets as _____ filers.

Married Filing Jointly

The general order of filing statuses providing the most benefits to least is: ______, Qualifying Surviving Spouse, Head of Household, Single, Married Filing Separately.

Married Filing Jointly

If a surviving spouse remarries before the end of the year, the deceased spouse's return must be filed _____.

Married Filing Separately

If one spouse does not wish to file jointly, then both spouses must default to ______.

Married Filing Separately

The general order of filing statuses providing the most benefits to least is: Married Filing Jointly, Qualifying Surviving Spouse, Head of Household, Single, _______.

Married Filing Separately

The general order of filing statuses providing the most benefits to least is: Married Filing Jointly, ______, Head of Household, Single, Married Filing Separately.

Qualifying Surviving Spouse

________ is the least common filing status.

Qualifying Surviving Spouse

The general order of filing statuses providing the most benefits to least is: Married Filing Jointly, Qualifying Surviving Spouse, Head of Household, _____, Married Filing Separately.

Single

True or false: A non-custodial parent can file as HOH if the custodial parent agrees to let the non-custodial parent file as HOH.

True

True or false: A taxpayer can qualify for Head of Household if their dependent is a married offspring.

True

True or false: A widowed taxpayer may use the married filing jointly status and file jointly with their deceased spouse, if the taxpayer's spouse died during the year and the taxpayer has not remarried as of the end of the year.

True

True or false: For IRS purposes, temporary absences includes business reasons.

True

True or false: For IRS purposes, temporary absences includes college.

True

True or false: For IRS purposes, temporary absences includes military service.

True

True or false: For IRS purposes, temporary absences includes summer camp.

True

True or false: For the purpose of determining head of household filing status, valid household expenses used to calculate whether a taxpayer is paying more than half the cost of maintaining a home do not include clothing.

True

The qualifying person for the HOH filing status must generally be related to the taxpayer either by blood, _______, or marriage.

adoption

The qualifying person for the HOH filing status must generally be related to the taxpayer either by ______, adoption, or marriage.

blood

"Taxpayers can file jointly if they are married as of December 31 and either: - Live together as married spouses - Live together in a(n) ______ marriage recognized in the state where they now reside or in the state where the ______ marriage began - Live apart but are not legally separated or divorced - Are separated under an interlocutory (not final) divorce decree"

common law

For the MFS filing status, various _____ are either not allowed or they are more limited than on a joint return.

credits

A taxpayer's marital status is determined on the last day of the year, unless he dies, in which case it is determined on the date of ____.

death

A taxpayer who is married to a non-resident alien spouse may elect to file as HOH by _______ the non-resident alien spouse even if they lived together all year long.

disregarding

"A taxpayer is considered single for the entire tax year if, on the last day of the tax year, he or she was: - Unmarried - Legally separated under a decree of divorce or separate maintenance - Legally ______ by the end of the year"

divorced

For a married taxpayer to be considered unmarried for HOH purposes, there are 4 requirements. One of them is to be able to claim a(n) ______ for the child.

exemption

The IRS uses a taxpayer's _______ to determine filing requirements, standard deductions, eligibility for certain credits, and the amounts of tax owed.

filing status

"The head of household status is available to taxpayers who meet all of the following requirements: - The taxpayer must be single, divorced, legally separated, or considered unmarried on the last day of the year. - The taxpayer must have paid more than ____ the cost of keeping up a home for the year. - The taxpayer must have had a qualifying person living in his home for more than half the year."

half

"The head of household status is available to taxpayers who meet all of the following requirements: - The taxpayer must be single, divorced, legally separated, or considered unmarried on the last day of the year. - The taxpayer must have paid more than half the cost of keeping up a home for the year. - The taxpayer must have had a qualifying person living in his home for more than ____ the year."

half

For a married taxpayer to be considered unmarried for HOH purposes, there are 4 requirements. One of them is pay more than _____ the cost of keeping up a home for the tax year for more than _____ the year.

half

For the MFS filing status, the exemption amount for the alternative minimum tax is _____ that which is allowed on a joint return.

half

For the MFS filing status, the standard deduction is _____ the amount allowed on a joint return and cannot be claimed if the taxpayer's spouse itemizes deductions.

half

True or false: To qualify for QSS filing, the taxpayer must have furnished over ____ the cost of keeping up the qualifying child's home for the entire year.

half

A taxpayer who qualifies to file as ______ will usually have a lower tax rate than a single or MFS taxpayer and will receive a higher standard deduction.

head of household

Higher or lower: For the MFS filing status, tax rates are generally _____ at the same levels of taxable income than those applicable to MFJ.

higher

One reason married taxpayers may file MFS is if one spouse has a large tax liability they incurred before marriage and they live in a state that does not recognize _____ spouse provisions.

injured

"The MFS status is for taxpayers who are married and either: - Choose to file separate returns - Do not agree to file a(n) _____ return"

joint

True or false: To qualify for QSS filing, the taxpayer must have been eligible to file a(n) _____ return in the year the spouse died.

joint

Only a(n) _____ marriage is recognized for IRS purposes and not any other type of civil union or registered domestic partnership.

legal

True or false: To qualify for QSS filing, the taxpayer must not have _______ before the end of the year.

remarried

"Taxpayers can file jointly if they are married as of December 31 and either: - Live together as married spouses - Live together in a common-law marriage recognized in the state where they now reside or in the state where the common law marriage began - Live apart but are not ______ separated or divorced - Are separated under an interlocutory (not final) divorce decree"

legally

The MFS status may benefit a taxpayer who wants to be responsible only for their own tax, or if it results in _____ tax than filing a joint return.

less

The qualifying person for the HOH filing status must generally be related to the taxpayer either by blood, adoption, or ______.

marriage

"Taxpayers can file jointly if they are married as of December 31 and either: - Live together as ______ spouses - Live together in a common-law marriage recognized in the state where they now reside or in the state where the common law marriage began - Live apart but are not legally separated or divorced - Are separated under an interlocutory (not final) divorce decree"

married

"The head of household status is available to taxpayers who meet all of the following requirements: - The taxpayer must be single, divorced, legally separated, or considered unmarried on the last day of the year. - The taxpayer must have paid more than half the cost of keeping up a home for the year. - The taxpayer must have had a qualifying _____ living in his home for more than half the year."

person

"The head of household status is available to taxpayers who meet all of the following requirements: - The taxpayer must be _____, divorced, legally separated, or considered unmarried on the last day of the year. - The taxpayer must have paid more than half the cost of keeping up a home for the year. - The taxpayer must have had a qualifying person living in his home for more than half the year."

single

For a married taxpayer to be considered unmarried for HOH purposes, there are 4 requirements. One of them is to not live with the _____ during the last 6 months of the year.

spouse

For the MFS filing status, neither spouse can deduct _____ interest.

student loan

Extended or unextended: If wanting to amend their return, married taxpayers generally cannot change from a joint return to a separate return after the ______ due date of the return.

unextended

A U.S. resident or U.S. citizen who is married to a non-resident alien can elect to file a joint return as long as both spouses agree to be taxed on their ______ income.

worldwide