CFP - Income Tax Planning: Filing Status/Standard Deductions Quizzes

C. Single; $14,250. ($12,550 + $1,700)

Ursula's divorce from her husband Boris became final on December 30 of the current year. Ursula's children lived with her for the first four months of the current year, but moved in with their father after Ursula was declared legally blind. Ursula did not contribute anything to the cost of maintaining the household when the children were living with her husband. Ursula is 40 years old. What filing status can Ursula use during the current year and what is her standard deduction? A. Married Filing Jointly; $26,450. B. Head of Household; $20,500. C. Single; $14,250. D. Single; $12,550.

B. $26,450 ($25,100 + $1,350; bc Alberto is 65 y/o)

Alberto (age 65) and Stephanie (age 58) are raising their grandson, Jackson, who is blind and qualifies as their dependent. What is Alberto and Stephanie's standard deduction in 2021 if they file a joint income tax return? A. $25,100 B. $26,450 C. $26,800 D. $27,800

B. $4,550. (basic standard deduction is equal to her earned income plus $350)

Josie is 17 years old and qualifies as a dependent for her parents. Josie earned $4,200 in wages and $900 in interest income during the current year. What is Josie's basic standard deduction for the current year? A. $4,200. B. $4,550. C. $5,100. D. $6,350.

D. $15,950 ($12,550 + $1,700 for being blind + $1,700 for being 65 or older)

Karen is single, blind, and 72 years old. What is her total standard deduction? A. $12,550 B. $13,900 C. $14,250 D. $15,950

A. $25,100 (additional standard deductions for age and blindness are allowed only for the T/P and spouse, and not for their dependents)

Linus (age 64) and Karen (age 63) are raising their granddaughter, Marie, who qualifies as their dependent. Marie is blind. Linus and Karen file a joint return in the current year. What is their standard deduction? A. $25,100 B. $26,450 C. $26,800 D. $27,800

I, II and III.

Maria and Orlando are married taxpayers who file their income tax return jointly. They have asked you to explain to them how the current law will affect their 2021 tax filing. You tell them: I. Their standard deduction is $25,100. II. Their deduction is 200% of a single tax filer. III. The maximum taxable income in the 22% bracket for MFJ filers will be twice the amount as for single filers.

II and III only.

Michelle's husband passed away in January this year. She does not remarry and still maintains a residence for herself and her son who is 10 years old. When she is filing her tax return for this year she may file as: I. Single II. Married filing jointly III. Married filing separately IV. Qualifying widower

B. Nancy will use the married filing jointly status, and Oliver will use the married filing separately status.

Nancy and Oliver had been married for 25 years when Oliver died suddenly in February of the current year. Although Nancy was deeply depressed about Oliver's death, she knew that Oliver would want her to move on with her life and she began dating again. It wasn't long before Nancy was swept off of her feet by Paul. After a romantic weekend in the Catskills, Paul and Nancy got married in November of the current year. What filing status will be used for Nancy and Oliver for the current year? A. Nancy and Oliver must both use the single filing status. B. Nancy will use the married filing jointly status, and Oliver will use the married filing separately status. C. Nancy and Oliver will both use the married filing jointly status. D. Nancy will use the surviving spouse filing status, and Oliver will use the married filing jointly status.

C. Head of Household, because Ralph's mother qualifies as a dependent.

Ralph is not married and does not have any children. However, Ralph is a very good son and provides more than half of the cost of maintaining a very nice apartment and the necessary expenses for his mother. Which of the following filing statuses should Ralph use and why? A. Single, because Ralph is not married. B. Single, because Ralph does not have any qualifying children. C. Head of Household, because Ralph's mother qualifies as a dependent. D. Head of Household, because Ralph's mother is a qualifying child.

C. $29,150 ($25,100 + ($1,350 × 3))

Trevor (age 66) and Susan (age 67 and blind) file a joint return for 2021. What is their standard deduction? A. $25,100 B. $27,700 C. $29,150 D. $30,200

IV only.

Which of the following is not a requirement that must be satisfied in order for a legally married taxpayer to use the head of household filing status? I. The taxpayer must file a separate tax return from the spouse. II. The taxpayer must furnish over one-half of the cost of maintaining the household. III. The spouse must not be a member of the household during the last six months of the tax year. IV. The taxpayer must be legally separated from the spouse.

D. Violet, who is a non-citizen spouse but files MFJ.

Which of the following taxpayers can use the standard deduction? A. Zeke, who files a separate return from his wife Yasmine. Yasmine itemizes deductions on her return. B. Xavier, who is a nonresident alien. C. William, who files a tax return for less than 12 months because he changed his annual accounting period. D. Violet, who is a non-citizen spouse but files MFJ.

C. Wilma can file as a head of household for this year.

Wilma is married to Herb, who abandoned her five years ago. She has not seen or communicated with him since June of that year. She maintains a household in which she and her two young dependent children live. Which of the following statements about Wilma's filing status in this year is correct? A. Wilma can use the rates for single taxpayers for this year. B. Wilma can file a joint return with Herb for this year. C. Wilma can file as a head of household for this year. D. Any of the above.