16 Filing Status

Question 1

List the six tests for a child to qualify as a dependent.

Answer 1

1. Residence test
2. Age requirement
3. Relationship test
4. Marital test
5. Residency test
6. Not-self-supporting test

Question 2

Describe the qualifying child residence test.

Answer 2

The child must have the same residence as the taxpayer for more than one-half of the taxable year.

Question 3

Describe the qualifying child not-self-supporting test.

Answer 3

The child must not have provided more than one-half of his or her own support.

Question 4

Describe the qualifying child relationship test.

Answer 4

The child must be a natural, step, adopted, or foster child; a sibling or step-sibling; or a descendant of one of the above.

Question 5

Describe the marital test for a dependent.

Answer 5

A dependent cannot file married joint, unless it is only to obtain a refund and there was no tax liability for the year.

Question 6

Describe the residency test for a dependent.

Answer 6

A dependent must be a citizen or resident of U.S. or a resident of Canada or Mexico.

Question 7

When do multiple support agreements apply?

Answer 7

They apply if, except for the support test, each individual would otherwise be eligible to claim the dependent.
Each individual provides over 10% but less than half of support.
A written agreement allocates the dependency exemption to an individual providing more than 10% of support.

Question 8

When parents are divorced, which parent is able to treat the child as a dependent?

Answer 8

The parent with custody (over half the year) treats the child as a dependent in the absence of any written agreement.
The custodial parent can waive the dependency claim to the other party (in writing by filing Form 8332).

Question 9

When does a taxpayer qualify for the head of household filing status?

Answer 9

The taxpayer must provide more than one-half of the cost of maintaining the home in which a qualifying child or other dependent relative lives for more than half the tax year.

Question 10

List the five tests for “qualifying relative.”

Answer 10

1. Support test
2. Gross income test
3. Relationship test
4. Marital test
5. Residency test

Question 11

Describe the qualifying relative support test.

Answer 11

The taxpayer must provide more than 50% of the dependent’s total support.

Question 12

Define “abandoned spouse.”

Answer 12

Spouse didn’t live in the house for last six months of year.
Maintain a household for at least six months for a dependent child.
Filing status is head of household.

Question 13

What tax rates apply to a surviving spouse?

Answer 13

Those whose filing status is surviving spouse/qualifying widow(er) use the married filing joint rates.

Question 14

What are the requirements for selecting the head of household status?

Answer 14

The taxpayer must provide more than half of the cost of maintaining the household for a qualifying child or a qualifying relative. (A nonrelative living in the home for the entire tax year does not qualify.)
This home must be the qualifying child’s or qualifying relative’s principal residence for more than half of the tax year.

Question 15

Describe the qualifying relative gross income test.

Answer 15

The gross income of the dependent cannot exceed the exemption amount for the year, unless one of the following exceptions is met:
Child of the taxpayer and younger than 19
Full-time student and younger than 24

Question 16

What are the five filing statuses available to a taxpayer?

Answer 16

There are currently five filing statuses: single, married filing jointly (MFJ), married filing separately (MFS), head of household (HOH), and qualifying surviving spouse (QSS).

Question 17

If a taxpayer is divorced on December 29 under a divorce or legal separate maintenance decree, what filing status must the taxpayer use if they do not have a qualifying dependent?

Answer 17

Taxpayers are considered unmarried for the whole year if, on the last day of the year, they are divorced or are legally separated under a divorce or legal separate maintenance decree. Therefore, the taxpayer must file as single.

Question 18

True or False: If one spouse itemizes, the other spouse must itemize deductions also, even if the other spouse has no itemized deductions.

Answer 18

True

Question 19

When is the qualifying surviving spouse status available?

Answer 19

If certain requirements are met, then the qualifying surviving spouse status is available for only the two years after the year of the death of a spouse.

Question 20

True or False: A custodial parent who has released the right to claim the dependency exemption to the noncustodial parent by filing Form 8332 may still qualify for HOH status.

Answer 20

True. A custodial parent who has released the right to claim the dependency exemption to the noncustodial parent by filing Form 8332 may still qualify for HOH status. Form 8332 does not qualify the noncustodial parent for HOH status.

Question 21

For head of household filing status, provide three examples of support.

Answer 21

Example of qualifying costs include:
* Rent
* Utilities
* Mortage interest
* Food (if eaten in the home)
* Repairs and maintenance
* Property insurance
* Property taxes

Question 22

What are the requirements for the abandoned spouse exception?

Answer 22

An abandoned spouse may file as HOH if the following requirements are met. To qualify, the married taxpayer must:
* Not file a joint tax return
* Pay more than 50% of the cost of maintaining a household
* Have a qualifying child, who can be claimed as the taxpayer’s dependent, live in the household for more than 50% of the year
* Not have allowed the spouse to live in the household during the last 6 months of the year.

Question 23

True or False: A personal exemption is allowed for every taxpayer and dependent.

Answer 23

False. No deduction for personal exemptions (including dependency exemptions) is permitted from 2018 – 2025.

Question 24

Only one taxpayer may claim a person as a dependent; if more than one taxpayer is eligible to claim a qualifying child as a dependent and both taxpayers are a parent of the child, what is the tiebreaker rule?

Answer 24

If both taxpayers are parents, the parent the child lives with longest during the tax year takes precedence. However, the parent who has custody can sign a waiver (Form 8332) on a yearly basis to grant the other parent the ability to claim the child as their dependent.