25 May Question 1. In satisfying the support test and the gross income te
Question
1. In satisfying the support test and the gross income test for claiming a dependency exemption, a scholarship received by the person being claimed is handled the same way for each test. Do you agree or disagree with this statement? Why?
2. In order to claim a dependency exemption for other than a qualifying child, a taxpayer must meet the support test. Generally, this is done by furnishing more than 50% of a dependent’s support. What exceptions exist, if any, where the support furnished need not be more than 50%?
.
3. In applying the gross income test in the case of dependents that are married, could the application of community property laws have any effect? Explain.
$4,000 (50% × $8,000) of income, while Alice remains immune.
4. In meeting the criteria of a qualifying child for dependency exemption purposes, when if ever, might the child’s income become relevant?
5. Lena is 66 years of age, single, and blind and is not claimed as a dependent. How much gross income must she have before she is required to file a Federal income tax return for 2014?
6. When can a taxpayer not useForm 1040EZ? Form 1040A?
7. When married persons file a joint return, joint and several liability results. What does this mean?
8. Jayden and Chloe Harper are husband and wife and use the calendar year for tax purposes.
a. If the Harpers file a joint return for 2014, can they later switch to separate returns for 2014?
b. If the Harpers file separate returns for 2014, can they later switch to a joint return for 2014?
9. Contrast the tax consequences resulting from the following filing status situations:
a. Married filing jointly versus married filing separately.
b. Married filing separately versus single filing separately.
c. Married filing separately versus abandoned spouse status.
10. Regarding head of household filing status, comment on the following:
a. A taxpayer qualifies even though he maintains a household which he and the dependent do notshare.
b. A taxpayer does not qualify even though the person sharing the household isa dependent.
c. The usual eventual filing status of a surviving spouse.
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