Ch. 4

Elroy, who is single, has taken over the care of his mother Irene in her old age. Elroy pays the bills relating to Irene's home. He also buys all her groceries and provides the rest of her support. Irene has no gross income. Assume the original facts except that Elroy has taken over the care of his grandmother, Renae, instead of his mother. What is Elroy's filing status?

Single

Juan and Bonita are married and have two dependent children living at home. This year, Juan is killed in an avalanche while skiing.

Single

David and Lily Fernandez have determined their tax liability on their joint tax return to be $3,100. They have made prepayments of $2,240 and also have a child tax credit of $2,000. What is the amount of their tax refund or taxes due?

Description Amount total Tax $3,100 Prepayment $2,240 Child tax Credit $2,000 Tax Refund $1,140

Elroy, who is single, has taken over the care of his mother Irene in her old age. Elroy pays the bills relating to Irene's home. He also buys all her groceries and provides the rest of her support. Irene has no gross income. What is Elroy's Filing Status?

Head of household

Juan and Bonita are married and have two dependent children living at home. This year, Juan is killed in an avalanche while skiing. What is Bonita's filing status this year?

Married filing jointly

Aishwarya's husband passed away in 2021. She needs to determine whether Jasmin, her 17-year-old stepdaughter, who is single, qualifies as her dependent in 2022. Jasmine is resident but not a citizen of the United States. She lived in Aishwarya's home from June 15 through December 31, 2022. Aishwarya provided more than half of Jasmine's support for 2022. Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 is Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $5,000 for the year?

No

John and Tara Smith are married and have lived in the same home for over 20 years. John's uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any—his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim's support by providing him with lodging valued at $5,000 and food valued at $2,200. Assume the original facts except that Tim earned $10,000 and used all the funds for his own support. Are the Smiths able to claim Tim as a dependent?

No

John and Tara Smith are married and have lived in the same home for over 20 years. John's uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any—his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim's support by providing him with lodging valued at $5,000 and food valued at $2,200. Assume the original facts except that Tim is a friend of the family and not John's uncle.

No

The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents' home for three months of the year, and he was away at school for the rest of the year. He received $9,850 in scholarships this year for his outstanding academic performance and earned $5,010 of income working a part-time job during the year. The Samsons paid a total of $5,280 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support. Assume the original facts except substitute Jason's grandparents for his parents. Determine whether Jason's grandparents can claim Jason as a dependent.

No

The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents' home for three months of the year, and he was away at school for the rest of the year. He received $9,850 in scholarships this year for his outstanding academic performance and earned $5,010 of income working a part-time job during the year. The Samsons paid a total of $5,280 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support. Assume the original facts except that Jason earned $5,710 while working part-time and used this amount for his support. Can Samsons claim Jason as their dependent?

No

Juan and Bonita are married and have two dependent children living at home. This year, Juan is killed in an avalanche while skiing.

Qualifying Widow

Elroy, who is single, has taken over the care of his mother Irene in her old age. Elroy pays the bills relating to Irene's home. He also buys all her groceries and provides the rest of her support. Irene has no gross income. Assume the original facts except that Elroy's mother, Irene, lives with him and receives an annual $5,900 taxable distribution from her retirement account. Elroy still pays all the costs to maintain the household. What is his filing status?

Single

Aishwarya's husband passed away in 2021. She needs to determine whether Jasmin, her 17-year-old stepdaughter, who is single, qualifies as her dependent in 2022. Jasmine is resident but not a citizen of the United States. She lived in Aishwarya's home from June 15 through December 31, 2022. Aishwarya provided more than half of Jasmine's support for 2022. Is Aishwarya allowed to claim Jasmine as a dependent for 2022?

Yes

Aishwarya's husband passed away in 2021. She needs to determine whether Jasmin, her 17-year-old stepdaughter, who is single, qualifies as her dependent in 2022. Jasmine is resident but not a citizen of the United States. She lived in Aishwarya's home from June 15 through December 31, 2022. Aishwarya provided more than half of Jasmine's support for 2022. Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 if Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $2,500 for the year?

Yes

John and Tara Smith are married and have lived in the same home for over 20 years. John's uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any—his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim's support by providing him with lodging valued at $5,000 and food valued at $2,200. Are the Smiths able to claim Tim as a dependent?

Yes

John and Tara Smith are married and have lived in the same home for over 20 years. John's uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any—his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim's support by providing him with lodging valued at $5,000 and food valued at $2,200. Assume the original facts except that Tim is a friend of the family and not John's uncle and Tim lived with the Smiths for the entire year.

Yes

The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents' home for three months of the year, and he was away at school for the rest of the year. He received $9,850 in scholarships this year for his outstanding academic performance and earned $5,010 of income working a part-time job during the year. The Samsons paid a total of $5,280 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support. Assume the original facts except that Jason's grandparents, not the Samsons, provided Jason with the $5,280 worth of support. Can the Samson (Jason's parents) claim Jason as their dependent?

Yes

The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents' home for three months of the year, and he was away at school for the rest of the year. He received $9,850 in scholarships this year for his outstanding academic performance and earned $5,010 of income working a part-time job during the year. The Samsons paid a total of $5,280 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support. Can the Samson claim Jason as their dependent?

yes