11 multiple choice, true or false questions of federal income


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11 multiple choice, true or false questions of federal income taxation homework tax.doc QUESTION 1 ← Jennifer supports Ben, her cousin, who lived with her all year. Jennifer also supports two other individuals who do not live with her: JoAnn who is Jennifer’s mother, and Morris who is Ben’s brotherHow many (total) personal and dependency exemptions may Jennifer claim? (Assume all other requirements are met.) ← ← 1 1 ← 2 ← 3 ← 4 ← 2 3 QUESTION 2 ← Ben, age 23, is a full-time student and single. Ben is supported primarily by his parents. What is the most income that Ben can earn this year without disqualifying Ben as a dependent? ← ← $3,200 ← $5,000 ← No limit exists. ← $3,199 ← QUESTION 3 ← One requirement for claiming a Qualifying Child is that the taxpayer provide more than 50% of the child’s support. ← ← True ← False QUESTION 4 ← As to the requirements for claiming dependents, which of the following is true? ← ←← Dependents may earn only $1,000. ←← All dependents must be under the age of 24. ←← Children under the age of 14 with unearned income over the personal exemption amount may not be claimed as a dependent. A dependent may be married and file a joint tax return under certain circumstances. ←← ← QUESTION 5 ← Anna is supported entirely by her four children Julie, John, Jane and Joseph who provide her support in the following percentages: Julie 5%, John 10%, Jane 40%, Joseph 45%Assuming a multiple support declaration exists, which of the children may claim Anna as a dependent? Any one of them John, Jane or Joseph Jane or Joseph Joseph only None of them 5 points (Extra Credit) QUESTION 6 ← Lily, who is divorced, maintains a home in which she and her 15-year-old daughter live. Lily provides the majority of the support for her daughter and for a son, age 23, who is enrolled full-time at the university and lives in the dorm. The son also works in the campus bookstore and earns spending money of $4,001. How many personal and dependency exemptions may Lily claim? ← ← ← 1 ← ← 2 ← ← 3 ← ← 4 ← QUESTION 7 ← ← ← False Individuals who die before the end of the year cannot be claimed as dependents. True QUESTION 8 ← Generally, in the case of a divorced couple, the parent who has physical custody of a child for the greater part of the year is entitled to the Qualifying Child dependency exemption. ← ← True False QUESTION 9 ← Which of the following is not considered support for the Qualifying Person support test? ← ← Clothing ← Transportation ← Portion of home expenses ← Value of services rendered by the taxpayer for the dependent ← QUESTION 10 ← When determining if a Qualifying Person exemption is available, there is an exception to the support test in the case of multiple support declarations. ← ← True False QUESTION 11 ← Mohamed’s father is retired and receives $9,000 per year in social security benefits. Monhamed’s father saves $2,000 of the benefits and spends the remaining $7,000 for his support. How much support must Mohammed provide for his father to meet the qualifying person support requirement? ← ← $ 9,000 ← $ 9,001 ← $ 7,000 ← $ 7,001 Read more

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