Lesson 1 - Filing a Tax Return *

If the taxpayer is the custodial parent, he or she can use Form 8332 - Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent to make the written declaration to release a claim to an exemption for a child to the noncustodial parent. Although the exemption amount is zero for tax year 2019, this release allows the noncustodial parent to claim all the following tax benefits except: A. Earned Income Tax Credit B. Child Tax Credit C. Additional Child Tax Credit D. Credit for Other Dependents

A. Earned Income Tax Credit

If the taxpayer obtains a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce he or she intends to and does, in fact, remarry each other in the next tax year, the taxpayer and his or her spouse must file file as......................

married individuals in both years

If the taxpayer obtains a court decree of annulment, which holds that no valid marriage ever existed, he or she is considered(___________) even if he or she filed joint returns for earlier years.

unmarried

If the taxpayer is divorced under a final decree by the last day of the year. He or she is considered to be ............

unmarried for the whole year.

Agnes Green was a single, calendar year taxpayer. She died on March 6, 2019. Her final income tax return must be filed by which date (not including weekends, holidays or automatic extensions)? A. April 15, 2019 B. January 1, 2020 C. March 6, 2020 D. April 15, 2020

A. April 15, 2019

Rick and Tina are married and filing a joint tax return. Their two children under age 18 and Tina's mother lived with them all year. During 2019, Rick and Tina provided all the support for their children and more than half of the support for Tina's mother. The children each had interest income of less than $400. Tina's mother received $4,500 from a taxable pension, $2,500 of dividends, and $2,000 of interest income. How many personal exemptions can Rick and Tina claim on their Federal income tax return? A. 0 B. 3 C. 4 D. 5

A. 0 There will be no personal exemption amount for 2020. The personal exemption amount remains zero under the Tax Cuts and Jobs Act (TCJA).m

Tim and Gail are divorced. In 2019, their child lived with Tim 190 nights and with Gail 165 nights. Their child also spent ten nights with Tim's parents during the summer. Who is the custodial parent? A. Tim B. Gail C. Tim and Gail D. Neither Tim nor Gail

A. Tim

5. If a taxpayer's spouse died during the year, he or she may be entitled to the special qualifying widow(er) with dependent child benefits the next how many years? A. Two years B. Three years C. Four years D. Five years

A. Two years

Mike is unmarried. His dependent daughter, Sara, lived with him all year. Property taxes of $1,000 and mortgage interest of $4,000 on the home where he and Sara live are divided equally with his ex-wife. Mike paid the utilities of $100 per month. What portion of the yearly household expenses allows him to qualify for head of household filing status? A. $2,500 B. $3,700 C. $5,600 D. $6,200

B. $3,700

In meeting the gross income test for claiming his father as a dependent, James must consider the income received by his father. This income included gross rents of $3,000 (expenses were $2,000), municipal bond interest of $1,000, dividends of $1,500, and Social Security of $4,000. What is James' father's gross income for dependency test purposes? A. $3,000 B. $4,500 C. $5,500 D. $9,600

B. $4,500

Form 4868 - Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, will provide the taxpayer with the following: A. An automatic extension of 6 months to pay the taxes due B. An automatic extension of 6 months to file the return C. An automatic extension of 8 months to file the return D. An automatic extension of 2 months for taxpayers out of the country on April 15th

B. An automatic extension of 6 months to file the return

An unmarried taxpayer provides all of the support necessary for an elderly parent to live independently in a separate home. The taxpayer is claiming the parent as a dependent. Which of the following filing statuses is the taxpayer allowed to use when filing and generally will be the most advantageous for the taxpayer to use? A. Single B. Head of household C. Qualifying widow D. Married filing separately

B. Head of household

For 2019, Leslie is unmarried and paid more than half the cost of keeping up her home. All of the following dependents would qualify Leslie to file as head of household except: A. Leslie's grandson, who lived with her but was absent from her home for 9 months in 2019 while attending boarding school B. Leslie's married son, who could properly be claimed as a dependent on his father's return only C. Leslie's father, whom she can claim as a dependent and whose main home for 2019 was a home for the elderly for which Leslie paid more than one-half the cost D. Leslie's sister, whom Leslie can claim as a dependent and who lived with Leslie until she died in May 2019

B. Leslie's married son, who could properly be claimed as a dependent on his father's return only

Randall lived apart from his spouse from July 10 to December 31, but he was not divorced or legally separated at the end of the year. What filing status is Randall eligible to use on his tax return? A. Single B. Head of Household C. Married, filing separately D. None of the above

C. Married, filing separately

Which dependent relative does not have to live in the same household as the taxpayer claiming head of household filing status? A. Uncle B. Sister or brother C. Mother D. Daughter

C. Mother

If the taxpayer is a U.S. citizen or resident, whether he or she must file a return depends on which of the following factors? A. Gross income B. Filing status C. Age D. All of the above

D. All of the above

Which of the following is a requirement that must be met in determining whether a taxpayer is eligible for head of household filing status purposes? A. An individual's spouse must not have lived in their home for the entire tax year B. The individual must be divorced or legally separated for over one year C. An individual must pay less than one-half the cost of keeping up a home for the tax year D. An individual's home must be, for at least 6 months, the main home of his or her child, stepchild, or adopted child whom he or she can properly claim as a dependent

D. An individual's home must be, for at least 6 months, the main home of his or her child, stepchild, or adopted child whom he or she can properly claim as a dependent

. A qualifying relative must not have attained what age by the end of the calendar year to meet the age requirement to be considered a qualifying relative? A. 13 years old B. 19 years old C. 24 years old D. No age limit

D. No age limit

What is a taxpayer's filing status if the person never married or if, on the last day of the year, the person is unmarried or legally separated under a divorce or separate maintenance decree. The taxpayer is considered unmarried for the whole year if, on the last day of his or her tax year, he or she is either:

Single

The tax law divides taxpayers into five status categories based on their family responsibilities. What are they?

Single, Head of household, married filing jointly, married filing separately, and qualifying widow(er) w/ dependant child.