Question 1

In year 1, the Bennetts' 25-year-old daughter, Jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. In previous years, Jane has never worked and her parents have always been able to claim her as a dependent. In year 1, a kind neighbor offers to pay for all of Jane's educational and living expenses. Which of the following statements is most accurate regarding whether Jane's parents would be allowed to claim an exemption for Jane in year 1 assuming the neighbor pays for all of Jane's support?

Accepted Answer

A)   No, Jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.
B)   Yes, because she is a full-time student and does not provide more than half of her own support, Jane is considered her parent's qualifying child.
C)   No, Jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.
D)   Yes, because she is a student, her absence is considered as "temporary." Consequently she meets the residence test and is a considered a qualifying child of the Bennetts.E) A) and C)
F) C) and D)

Question 2

Which of the following is NOT a from AGI deduction?

Accepted Answer

A)   Standard deduction
B)   Itemized deduction
C)   Personal exemption
D)   None of these. All of these are from AGI deductionsE) None of the above
F) All of the above

Question 3

For AGI deductions are commonly referred to as deductions "below the line."

Accepted Answer

A) True 
 B)False

Question 4

If no one qualifies as the dependent of an unmarried taxpayer, the unmarried taxpayer may still be able to qualify for the head of household filing status.

Accepted Answer

A) True 
 B)False

Question 5

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

Accepted Answer

A) True 
 B)False

Question 6

Greg is single. During 2014, he received $60,000 of salary from his employer. That was his only source of income. He reported $3,000 of for AGI deductions, $7,000 of itemized deductions. The 2014 standard deduction amount of a single taxpayer is $6,200 and the 2014 exemption amount is $3,950. What is Greg's taxable income?

Accepted Answer

$46,050, c...

Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

Correct Answer
verified

Correct Answer
verified
$46,050, c...
View Answer

Correct Answer
verified

Which of the following is NOT a from AGI deduction?

Correct Answer
verified

If no one qualifies as the dependent of an unmarried taxpayer, the unmarried taxpayer may still be able to qualify for the head of household filing status.

Correct Answer
verified

For AGI deductions are commonly referred to as deductions "below the line."

Correct Answer
verified

Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.

Correct AnswerverifiedShow Answer

Correct Answerverified$46,050, c...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is NOT a from AGI deduction?

Correct AnswerverifiedShow Answer

If no one qualifies as the dependent of an unmarried taxpayer, the unmarried taxpayer may still be able to qualify for the head of household filing status.

Correct AnswerverifiedShow Answer

For AGI deductions are commonly referred to as deductions "below the line."

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
$46,050, c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified