TAX4001 - EXAM 3 (FINAL) QUESTIONS & ANSWERS
True or false? An individual who is married on December 31st can elect to file a joint
return. - Answer -True.
Two individuals got married on January 1st and divorced on December 30th. What is
their filing status? - Answer -Single.
A married couple has 1 dependent child. The husband passed away this year. What is
the filing status for the wife for this year? What about the year afterwards? - Answer -
Married filing jointly for this year and next year.
=====Explanation=======
Surviving spouse for the first two taxable years.
This year = married filing jointly.
year after = married filing jointly.
An individual who is unmarried on the last day of the year has a filing status of
_____________. - Answer -Single.
Mrs. and Mrs. White provide a home not only for their 15-year old son Jake, but also for
their 17-year old niece Karen, who has lived with her aunt and uncle for 4-years. This
year, both Jake and Karen had jobs, and their earnings represented less than 50% of
their financial support for the year. Are Jake and Karen considered dependents? -
Answer -Yes.
=====Explanation=======
The qualifications for a dependent are:
1) Dependent can't provide more than 1/2 of their own financial support for the year.
2) Must live in same place as the taxpayer for more than 1/2 of the year.
3) Dependent must be less than 19-years old, or if they're a student, they have to be
less than 24-years old.
4) The dependent can't file a joint tax return with a spouse (unless it was filed only to
refund a claim).
Lastly, it's important to note that dependents can be the taxpayer's children,
descendants, sisters/brothers, and their sisters/brothers descendants (nieces and
, nephews). So dependents aren't limited to just the taxpayer's children -- it's actually a
big category.
Mr. Wiggen provides a home for his 23-year old son Richard, and Richard's 19-year old
wife Colleen. Richard is a full-time student at a local university. Colleen earns the
minimum wage at her job, so Mr. Wiggen provides about 80% of the couple's financial
support. Richard and Colleen filed a joint income tax return this year only to receive a
refund. Are Richard and Colleen considered dependents? - Answer -Richard is a
dependent. Colleen is not.
=====Explanation=======
Richard meets the definition of qualifying child even though he is married. He is a
student less than 24-years old, and does not contribute more than 1/2 of his own
financial support for the year. He filed a joint tax return, but it was only for refund
purposes, so he can still qualify as a dependent.
What are the standard deduction amounts?
A) Married Filing Jointly
B) Surviving Spouse
C) Married Filing Separately
D) Head of Household
E) Single - Answer -A) $24,400
B) $24,400
C) $12,200
D) $18,350
E) $12,200
*** MUST MEMORIZE ALL THESE NUMBERS FOR THE EXAM! ****
How do you calculate a taxpayer's AGI? - Answer -(Total income) - (Above the line
Deductions) = AGI
How do you calculate a taxpayer's taxable income? - Answer -(AGI) - (Standard
Deduction, or Itemized Deduction, whichever is greater) - (QBI) = Taxable income
True or false? An individual who is married on December 31st can elect to file a joint
return. - Answer -True.
Two individuals got married on January 1st and divorced on December 30th. What is
their filing status? - Answer -Single.
A married couple has 1 dependent child. The husband passed away this year. What is
the filing status for the wife for this year? What about the year afterwards? - Answer -
Married filing jointly for this year and next year.
=====Explanation=======
Surviving spouse for the first two taxable years.
This year = married filing jointly.
year after = married filing jointly.
An individual who is unmarried on the last day of the year has a filing status of
_____________. - Answer -Single.
Mrs. and Mrs. White provide a home not only for their 15-year old son Jake, but also for
their 17-year old niece Karen, who has lived with her aunt and uncle for 4-years. This
year, both Jake and Karen had jobs, and their earnings represented less than 50% of
their financial support for the year. Are Jake and Karen considered dependents? -
Answer -Yes.
=====Explanation=======
The qualifications for a dependent are:
1) Dependent can't provide more than 1/2 of their own financial support for the year.
2) Must live in same place as the taxpayer for more than 1/2 of the year.
3) Dependent must be less than 19-years old, or if they're a student, they have to be
less than 24-years old.
4) The dependent can't file a joint tax return with a spouse (unless it was filed only to
refund a claim).
Lastly, it's important to note that dependents can be the taxpayer's children,
descendants, sisters/brothers, and their sisters/brothers descendants (nieces and
, nephews). So dependents aren't limited to just the taxpayer's children -- it's actually a
big category.
Mr. Wiggen provides a home for his 23-year old son Richard, and Richard's 19-year old
wife Colleen. Richard is a full-time student at a local university. Colleen earns the
minimum wage at her job, so Mr. Wiggen provides about 80% of the couple's financial
support. Richard and Colleen filed a joint income tax return this year only to receive a
refund. Are Richard and Colleen considered dependents? - Answer -Richard is a
dependent. Colleen is not.
=====Explanation=======
Richard meets the definition of qualifying child even though he is married. He is a
student less than 24-years old, and does not contribute more than 1/2 of his own
financial support for the year. He filed a joint tax return, but it was only for refund
purposes, so he can still qualify as a dependent.
What are the standard deduction amounts?
A) Married Filing Jointly
B) Surviving Spouse
C) Married Filing Separately
D) Head of Household
E) Single - Answer -A) $24,400
B) $24,400
C) $12,200
D) $18,350
E) $12,200
*** MUST MEMORIZE ALL THESE NUMBERS FOR THE EXAM! ****
How do you calculate a taxpayer's AGI? - Answer -(Total income) - (Above the line
Deductions) = AGI
How do you calculate a taxpayer's taxable income? - Answer -(AGI) - (Standard
Deduction, or Itemized Deduction, whichever is greater) - (QBI) = Taxable income
