EA exam part1 (A+ GRADED)

tax filing flow correct answers filing requirement and status -income - income exclusion - adjust to income AGI (schedule1) - deduction - taxable income and taxation - additional tax (schedule2) - credits (schedule3) - payment (withholding) or refund qualifying relative correct answers 1. living together all year OR a family member (no foster parents, no cousins) 2. cannot be a qualifying child 3. not provide over half of own support 4. person's GI less than 4300 qualifying child correct answers 1. younger than 19 or 24 if full-time student OR any age if disabled 2. live more than half a year 3. not provide over half of own support multiple support agreement (form 2120) correct answers 1. claiming person more than 10%, no one more than half 2. each one pays over 10% sign statement Married Filing Separately (MFS) correct answers 1. NO-child and dependent care expenses credit (1/2 income exclusion limit through ER asst. program); EIC; adoption credit or exclusion; education credit or loan interest deduction; exclusion on saving bonds interest 2. 1/2-CTC and saver's credit, capital loss deduction (1500), standard deduction 3. one spouse itemize, the other one cannot standard Qualifying Widow(er) (QW) correct answers 1. file jointly in the year of death, then two years QW after 2. must have a child as dependent (same standard as qualifying child) 3. if remarry, descendant file MFS, survivor lose QW due diligence correct answers 1. complete form8867 if filing HOH, EIC, CTC, ACTC, AOTC, ODC 2. keep records for 3 years 3. each failure worth $545 penalty custodial vs. noncustodial parent (form 8332) correct answers -custodial: more nights, claim HOH, care expenses credit, care benefits exclusion, EIC, health coverage credit -noncustodial: CTC, ACTC, credit for other dependents Head of Household (HOH) correct answers 1. custodial parent, live together (expect parents) more than half year 2. qualifying child or qualifying family member 3. more than half cost of living 4. unmarried (no spouse last 6 months)