Fast Forward Divorced & Separated

Question 1

Sally is required to pay $200 a month to her ex-husband Sam, o which $100 is designated by the divorce decree to be for the support of their minor children. What is the proper treatment if Sally if Sally only pays $150 to Sam in a month?

• It will all be considered child support
• None of it will be considered child support
• $100 will considered child support
• $100 will be considered alimony

Answer 1

My answer: $100 will be considered child support

Question 2

Bill’s friend John is incarceated and Bill agrees to take care of John’s five-year-old son Json while John serves his sentence. Jason lives with Bill for the entire taxable year and meets all of the other dependence criteria with respect to Bill. For purposes of the dependency rules, Jason

• is considered a qualifying relative of bill
• is considered a qualifying child of Bill
• is considered an adopted foster child of Bill
• Cannot be cosidreed as a dependent of Bill

Answer 2

My answer: is considered a qualifying relative of bill

Question 3

With respect to a child who is a full-time student at an eligible educational institution, the Lifetime Learning Credit o the American Opportunity Credit
* May only be taken by the parent entitled to the dependencyo
* May be split evenly between divorced or separated parents of the child
* May be taken by the parent who paid most of the expenses, regardless of whose dependent the child is
* May be considered child support

Answer 3

My answer: May only be taken by the parent entitled to the dependency

Question 4

Taxpayers are allowed the Child Tax Credit for:
* Any child
* Any qualifying dependent
* Qualifying dependents other than qualifying children
* Qualifying children

Answer 4

My Answer: Qualifying children

Question 5

Donna is a 22-year old graduate student married to Frank, Donna and Frank live with Donna otherwise qualifies as a qualifying child of her parents. what happens if Donna files a joint return with Frank?

• Her parents cannot consider her as a dependent
• Her parents must consider both Donna and Frank as dependents
• Her parents can consider Donna as a dependent
• Her parents can consider Donna as a dependent if her joint return is being filed solely to claim a refund for taxes withheld

Answer 5

My answer:

Her parents can consider Donna as a dependent if her joint return is being filed solely to claim a refund for taxes withheld

Question 6

A payment from one parent to another is not considered alimony if:

• The parents are not yet formally divorced, but only legally separated
• The parents have never been married to each other
• The parents divorce is final
• The children are no longer minors

Answer 6

My answer:
The parents have never been married to each other

Question 7

A payment by one spouse of another spouse’s mortgage based solely on a provision contained in a prenuptial agreement:
* is considered alimony if the spouses are separated
* is not considered alimony because it is not paid pursuant to a divorce or separation instrument
* is considered alimony only after the spouses are formally divorced
* is not considered alimony because it is not paid directly to the recipient spouse

Answer 7

My answer:
is not considered alimony because it is not paid pursuant to a divorce or separation instrument

Question 8

For tax purposes, whicch of the following statemets is correct for payments under separate maintenance agreements?

• Alimony payments are treated the same as child support payments
• The recipient of alimony may always exclude the payments from gross income
• The payor of child support may deduct the payments
• The recipient of child support may always exclude the payments from gross income

Answer 8

My Answer:
The recipient of child support may always exclude the payments from gross income

Question 9

A divorce decree executed before 2019 provides that Pat is required to make payments to Chris of $2,000 per month until the date their daughter Cathy turns 21 years of age. At that time the decree provides that the payments reduce to $1,500. Which of the following is correct under these circumstances?
* Pat cannot deduct child support or alimony after her daughter’s 21st birthday
* Pat’s maximum monthly alimony deduction before her daughter turns 21 is limited to $1,500 and $500 is treated as specifically designated as child support
* None of the payments made by Pat to Chris are considered alimony

Answer 9

My Answer:
Pat’s maximum monthly alimony deduction before her daughter turns 21 is limited to $1,500 and $500 is treated as specifically designated as child support

Question 10

Under which circumstances may a noncustodial parent consider his or her child as a dependent?
* The noncustodial parent pays more than one-half of the child’s support
* The custodial parent signs a written declaration releasing the dependency
* The noncustodial parent was awarded the dependen in the divorce decree
* The custodial parent verbally agrees not to claim the dependency

Answer 10

My Answer:
The custodial parent signs a written delcarion releasing the dependency