In prior years, John was single and he was a qualifying child of his parents. This year John, age 23 and a full-time student, got married. John and his wife file a joint return. If they were to file separately, John would report a $0 tax liability. John’s wife would report a $200 tax liability. John’s parents cannot claim him as a dependent this year.

Filing status determines all except which of the following?

Income-related items are excluded from gross income unless specifically included by a provision in the tax code.

Sarah is the Colton family’s 23-year-old daughter. She is a full-time student at an out-of-state university (for 8 months of the year) but plans to return home when the school year ends. During the year, Sarah earned $6,200 of income working part-time. Her support totaled $20,000 for the year. Of this amount, Sarah paid $7,000 with her own funds, her parents paid $12,000, and Sarah’s grandparents paid $1,000. Which of the following statements most accurately describes whether Sarah qualifies as a dependent of her parents?

Which of the following is not an itemized deduction?

It is not important to determine who is a taxpayer’s dependent because taxpayers are not allowed to claim a deduction for dependents.

Caroline and her husband Chris got divorced in May of this year. During the year, Caroline provided all the support for herself and her 23-year-old child Hans (not a full-time student) who lived in the same home as Caroline for the entire year. Hans earned $29,000 this year. What is the Caroline’s most favorable filing status for the year?

In May of year 1, David left his wife Juliette. While the couple was apart, they were not legally divorced. Juliette found herself having to financially provide for the couple’s only child (6 years of age) and to pay all the costs of maintaining the household. When Juliette filed her tax return for year 1, she filed a return separate from David. What is Juliette’s most favorable filing status for year 1?

For purposes of determining filing status, a taxpayer’s marital status is determined on the last day of the tax year in question.

James received $25,000 of compensation from his employer and he received $1,900 of interest from a municipal bond. What is the amount of James’s gross income?

Trudy and Ben file a joint return. Trudy’s reported income creates $200 of income tax liability and Ben’s reported income creates $180 of income tax liability. In addition to the reported income, Trudy has unreported income on which she owes $50 of income tax. How much of the $430 potential tax liability is Ben liable for?

Which of the following is a from AGI deduction?

In year 1, Danny’s wife died. Danny has no dependents. As of the end of year 2, Danny had not remarried. Which is the most advantageous filing status available to Danny in year 2?

If spouses are filing separate returns and one spouse itemizes deductions, the other spouse must also itemize deductions even when the second spouse’s itemized deductions are less than the standard deduction.

A temporary absence from the taxpayer’s home for full-time schoolwork by the child may cause the child to fail the qualifying child residence test.