VITA Final

Jenny married Rick in April of the tax year. Neither can be claimed as a dependent on another's tax return. Both worked and earned gross income for the tax year. They claim both of their personal exemptions on their joint tax return.

True

A taxpayer's spouse can be claimed as a personal exemption as long as the taxpayers are married by ____________ of the tax year and cannot be claimed as dependents on another person's tax return.

December 31

Some taxpayers must use either Form 1040A or Form 1040EZ instead of Form 1040, depending on their specific tax requirements.

False

The taxpayer's spouse can be claimed as a dependency exemption.

False

True or False: Keith and Kathy are married with dependent children. They must be covered under the same policy or plan to satisfy the individual shared responsibility provision.

False

True or False: Only volunteers who prepare and review tax returns are required to complete the Volunteer Standards of Conduct Training and certification.

False

True or False: Volunteers are generally held liable for the tax returns they prepare at VITA/TCE sites

False

Cindy's husband died on August 19 of the tax year. Cindy has no dependents and has not remarried. She should file as:

Married Filing Jointly

Ryan and Julie were married on December 29. They should file as:

Married Filing Jointly

To claim a personal exemption, the taxpayer must be able to answer ______ to the intake question, "Can anyone claim you or your spouse on their tax return?"

No

Two types of exemptions

Personal and Depedency

Becky and Frank were divorced on December 29. They have no children or other dependents and have not remarried. Their filing status should be:

Single

Tom's wife died on October 20, 2012. Tom has no dependents and has not remarried. Tom should file as:

Single

Individuals who are not required to file a tax return should file a return if they can claim the earned income credit.

True

True or False: Sandy is covered under health insurance offered by her spouse's employer; therefore, she has minimum essential coverage.

True

True or False: Volunteers are not required to complete a return if they have concerns about the accuracy of information provided by the taxpayer or other concerns.

True

Personal exemptions are reflected in the ______ section of the tax software and on Form ______, page 1.

Exemption; 1040

Exemptions ______ the taxpayer's taxable income

reduce

A driver's license can be used to verify a taxpayer's social security number and correct name spelling.

False

Are capital gains and capital gain distributions the same thing?

No. A capital gain occurs when the OWNER of a mutual fund (or capital asset) sells shares in the fund (or property) for more than its cost and realizes a profit. A capital gain distribution occurs when the mutual fund sells assets for more than their costa and distributes the realized gain to the shareholders

Mr. Ray Jackson's intake and interview sheet shows that his wife died during the tax year. He did not check a box for the question "Can anyone claim you or your spouse on their tax return?" You interview Mr. Jackson using the Interview Tips for Personal Exemptions in the Volunteer Resource Guide. Follow the conversation and think about how to complete lines 6a and 6b on Mr. Jackson's tax return. Based on this information, Mr. Jackson can claim _____.

Personal exemption foor both him and for his wife. Because the Jacksons were married at the time of Mrs. Jackson's death, Mr. Jackson is filing a join return and no one else can claim either of them as deependents, Mr. Jackson can claim a personal exemption for his deceased wife along with a personal exemption for himself

Anne's husband died on February 28, 2013. Anne has not remarried, but she has an 18-year-old dependent son. Anne's filing status should be:

Qualifying Widow(er) with Dependent Child

Bob is 27 years old. No one can claim him as a dependent. His gross income was $17,000 during the tax year. Based only on this information, Bob is required to file a tax return.

True

Janice is 18 years old and a full-time student. She comes into the Volunteer Tax Office with some questions about her tax return. She says that she is claimed as a dependent on her parents' tax return. Over the summer, she worked full time in a clothing boutique. Janice wants to file Form 1040EZ to report this income. How many exemptions will you indicate for Janice on her tax return?

Zero; since Janice is claimed as a dependent on her parent's tax return, she cannot claim herself as an exemption. Therefore, her total nnumber of exemptions is zerio,

A taxpayer whose spouse died during the tax year (can/cannot) _____ generally claim the person exemption for the deceased spouse.

can

Taxpayers who are divorced or legally separated at the end of the tax year (can/cannot) ____ claim their (former) spouse as an exemption.

cannot

Capital gain distributions are also called:

capital gain dividends

Claiming an incorrect number of exemptions is a _________ error

common