Ch 4 - Terms (Dependent-Related Filing Statuses) Flashcards
Custodial Parent
The parent with whom a child lived for the greater number of nights during the year
Dependent
An individual whose personal exemption may be claimed on another person’s income tax return.
To be claimed as a dependent, a person must meet certain tests.
Fair Rental Value
The amount the owner of a property could reasonably expect to receive from a stranger for the same type of lodging; generally, the amount at which a home with its furnishings could be rented to a similar size family in a similar location.
Full Time Student
An individual who is enrolled in a school for the number of hours or courses considered by the school toe be full time. School includes elementary and secondary schools, post-secondary colleges, and technical and trade schools. Does not include on-the-job training, correspondence schools, or night school. However, a student will not be disqualified by night classes that are part of a full-time course of study.
Multiple Support Agreement
If two or more persons who would otherwise be entitled to an exemption for a QR together furnish more than half the dependent’s support (but no individual provides more than half), any one of them who furnishes more than 10% of the support is entitled to the exemption if all the others who furnished more than 10% of the support file written declarations that they will not claim an exemption for the individual for that taxable year. Form 2120 is used for this purpose.
Noncustodial Parent
The parent who is not the custodial parent of the child
Nonresident Alien
A person who is not a US citizen and does not live in the United States, or lives in the US undera nonresident visa, or does not meet the substantial presence test. A nonresident alien return if filed on Form 1040NR. See IRS pub 519.
Permanent and Total Disability
A disability that prevents an individual from engaging in any substantial gainful activity because of a medically determined physical or mental impairment that is expected to result in death, or that has lasted or is expected to last for a continuous period of not less than 12 months.
Physical Custody
The taxpayer with whom a child lives is considered to have physical custody, regardless of who has nominal legal custody.
Principal Place of Abode (Principal Residence)
The place that an individual considers to be his permanent home. A person’s abode does not change when he is temporarily absent due to illness, school, military services, etc, as long as his living area is maintained and he can reasonably be expected to return home after the temporary absence.
Qualifying Child (QC)
A child who meets the relationship, age, residency, support, joint return, and the special tests with regard to a taxpayer to claim the dependency exemption, Child Tax Credit, Earned Income Credit, or Child and Dependent Care Credit with regard to the child, or to use the head of house hold filing status.
Qualifying Relative (QR)
A person 1. Who bears a certain relationship, 2. for whom the taxpayer provides more than one-half support for the year. 3. Whose gross income for the year is less than the exemption amount, and 4. who is not claimed as a QC of any taxpayer.
Single filing status
The filing status used by an unmarried taxpayer who does not qualify for any other filing status.
Married Filing Jointly filing status
The filing status used by a couple who are married at the end of the tax year and not legally separated under a final degree of divorce or separate maintenance, and who record total income, exemptions, and deductions of both spouses on one tax return.
Married Filing Separately filing status
The filing status used by a married couple choosing to record their respective incomes, exemptions, and deductions on separate individual tax returns.
Head of Household filing status
The filing status used by an unmarried (or married, but qualified to be unmarried for tax purposes) taxpayer who pays more than half of the cost of maintaining a household for more than six months for a qualifying child who is dependent, or for his or her mother or father for the entire year, and may claim either on his or her tax return.
Qualifying Widow(er) filing status
The filing status available to a qualified taxpayer for two years following the year of the spouse’s death. To qualify, the surviving spouse must have been entitled to file a joint return for the year of death, remain unmarried at the end of the current tax year, and pay over half the cost of maintaining his or her home which was the principal residence the entire tax year of his or her dependent child.
Legally Separated
Separated under a decree of separate maintenance that requires the spouses to live apart.
