Hrb Final Exam Questions With Solutions
Where on the tax form can you find the regular standard deduction amounts? Line 22 on
1040A, In the left margin at the top of the page 2 of forms 1040 and 1040A. Look at actual form
to look for line
How much is added to the standard deduction if the taxpayer (or spouse is age 65 or older, or
blind? $1550 if unmarried, $1250 if married
What is the personal exemption amount for 2016? $4,050
What two amounts are combined to make up the gross income filing requirments for most
taxpayers? The standard deduction and the personal exemption amounts
Under what circumstances might a taxpayer be required to file a return even though they do not
meet the gross income filing requirements? 1. Has net employment of $400 or more net
self employment 2. You had unemployment income you owe medicare Advantage MSA, receive
HAS, Archer, MSA 3. Reeived an Advanced Premium Tax credit even if they didn't otherwise
have a filing requirment for the year *Tips, HSA, SE $400, PTC
, Hrb Final Exam Questions With Solutions
What is the difference between injured spouse allocation and innocent spouse relief? The
difference between injured spouse and innocent spouse is significant in the eyes of the IRS. Both
release you from an income tax liability arising from a "married filing jointly" return but
different outcomes. Innocent spouse filed a joint return byt was unaware that their spouse
deliberately under reported tax liability. Injured spouse seeks to protect his or her share of the
refund in case it gets seized or offset due to the other spouse's debts or unpaid obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT
What four requirements must be met for an individual to be claimed as a dependent Must
pass the dependent test, joint return test, citizenship, qualifying child or relative
What are the five tests for a qualifying child? 1. Relationship 2. Age 3. Residency 4.
Support 5. Joint Return
How can a married individual meet the joint return test to remain a qualifying child? They
can meet this test by not filing a joint return with their spouse or they can file a joint return with
their spouse if they are filing only to claim a refund on any taxes withheld
, Hrb Final Exam Questions With Solutions
How can you determine who paid more than half of a person's support? Total support is
determined and reduced by the funds received by and for the person from all sources other than
the taxpaer. The remaining support is considered to be provided by the taxpayer. Other sources
might include government support Worksheet for Determining Support
What happens if an individual is a qualifying child of more than one taxpayer? Generally,
the custodial parent is the one in which the child spent the most nights
What happens when more than one taxpayer claims the same qualifying child? Tie
Breaker Rules apply : 1. The parent, if only one of the persons is the childs parent 2. The parent
with whom the child lived the longest during the tax 3. The parents with the highest AGI if no
parent can claim the child as a qualifying child
What four tests must be met for an individual to be considered a qualifying relative? 1.
Not be a qualifying child, the person cannot be the taxpayers qualifying child or the qualifying
child of another taxpayer 2. Relationship: Child, brother, sister, step sister, step brother, step
father , step mother, in-laws 3. Gross Income: gross income must be less than $4050 4. Support:
Taxpayer must provide more than half the support
, Hrb Final Exam Questions With Solutions
How can the gross income for a qualifying relative test be satisfied? Gross income must
be less than $4050 (Do not include tax exempt income)
What is the purpose of Form 2120 Multiple Support Declaration? You only need 2120
multiple support declaration if you are claiming someone other than a qualifying child as a
dependent and there are two or more people including yourself who provide support for the
dependent
How much is the child tax credit worth? $1,000
What additional requirements must be met for a taxpayer to be eligible to claim the Child Tax
Credit for the qualifying child? 1. Taxpayer 2. Child must be under17 at the end of the
year 3. Qualifying child must be claimed on tax payer returns 4. Qualifying child must be US
Citizen US National or resident of US
Is the Child Tax Credit refundable or nonrefundable CTC is nonrefundable the The
additional child tax credit is refundable
Where on the tax form can you find the regular standard deduction amounts? Line 22 on
1040A, In the left margin at the top of the page 2 of forms 1040 and 1040A. Look at actual form
to look for line
How much is added to the standard deduction if the taxpayer (or spouse is age 65 or older, or
blind? $1550 if unmarried, $1250 if married
What is the personal exemption amount for 2016? $4,050
What two amounts are combined to make up the gross income filing requirments for most
taxpayers? The standard deduction and the personal exemption amounts
Under what circumstances might a taxpayer be required to file a return even though they do not
meet the gross income filing requirements? 1. Has net employment of $400 or more net
self employment 2. You had unemployment income you owe medicare Advantage MSA, receive
HAS, Archer, MSA 3. Reeived an Advanced Premium Tax credit even if they didn't otherwise
have a filing requirment for the year *Tips, HSA, SE $400, PTC
, Hrb Final Exam Questions With Solutions
What is the difference between injured spouse allocation and innocent spouse relief? The
difference between injured spouse and innocent spouse is significant in the eyes of the IRS. Both
release you from an income tax liability arising from a "married filing jointly" return but
different outcomes. Innocent spouse filed a joint return byt was unaware that their spouse
deliberately under reported tax liability. Injured spouse seeks to protect his or her share of the
refund in case it gets seized or offset due to the other spouse's debts or unpaid obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT
What four requirements must be met for an individual to be claimed as a dependent Must
pass the dependent test, joint return test, citizenship, qualifying child or relative
What are the five tests for a qualifying child? 1. Relationship 2. Age 3. Residency 4.
Support 5. Joint Return
How can a married individual meet the joint return test to remain a qualifying child? They
can meet this test by not filing a joint return with their spouse or they can file a joint return with
their spouse if they are filing only to claim a refund on any taxes withheld
, Hrb Final Exam Questions With Solutions
How can you determine who paid more than half of a person's support? Total support is
determined and reduced by the funds received by and for the person from all sources other than
the taxpaer. The remaining support is considered to be provided by the taxpayer. Other sources
might include government support Worksheet for Determining Support
What happens if an individual is a qualifying child of more than one taxpayer? Generally,
the custodial parent is the one in which the child spent the most nights
What happens when more than one taxpayer claims the same qualifying child? Tie
Breaker Rules apply : 1. The parent, if only one of the persons is the childs parent 2. The parent
with whom the child lived the longest during the tax 3. The parents with the highest AGI if no
parent can claim the child as a qualifying child
What four tests must be met for an individual to be considered a qualifying relative? 1.
Not be a qualifying child, the person cannot be the taxpayers qualifying child or the qualifying
child of another taxpayer 2. Relationship: Child, brother, sister, step sister, step brother, step
father , step mother, in-laws 3. Gross Income: gross income must be less than $4050 4. Support:
Taxpayer must provide more than half the support
, Hrb Final Exam Questions With Solutions
How can the gross income for a qualifying relative test be satisfied? Gross income must
be less than $4050 (Do not include tax exempt income)
What is the purpose of Form 2120 Multiple Support Declaration? You only need 2120
multiple support declaration if you are claiming someone other than a qualifying child as a
dependent and there are two or more people including yourself who provide support for the
dependent
How much is the child tax credit worth? $1,000
What additional requirements must be met for a taxpayer to be eligible to claim the Child Tax
Credit for the qualifying child? 1. Taxpayer 2. Child must be under17 at the end of the
year 3. Qualifying child must be claimed on tax payer returns 4. Qualifying child must be US
Citizen US National or resident of US
Is the Child Tax Credit refundable or nonrefundable CTC is nonrefundable the The
additional child tax credit is refundable
