Filing status

Question 1

What are the 3 things that require an individual to file a tax return

Answer 1

1. Has gross income in excess of the standard deduction, excluding any additional amount for being age 65 or older
2. has net earnings from self-employment of $400 or more
3. is a dependent with more gross income than the standard deduction or with unearned income over $1,300

Question 2

Household maintenance - what is included as qualifying costs

Answer 2

Property tax
Mortgage interest
rent
utilities
upkeep
repair
property insurance
food consumed in-home

Question 3

What is not included in household maintenance

Answer 3

Clothing
Education
Medical treatment
Life insurance
Transportation
Vacations
Services by the taxpayer
Services by the dependent

Question 4

What are the two special rules concerning a qualifying child or relative

Answer 4

The taxpayer with a dependent PARENT qualifies even if the parent does not live with the taxpayer. Otherwise, the IRS maintains that the qualifying individual must occupy the same household (Except for temporary absences)
2. in case of divorce, the custodial parent of a qualifying child qualifies for head of household status even if the noncustodial parent claims the child as his or her depenendent

Question 5

What is the time frame that a widow or widower could claim surviving spouse status

Answer 5

2 years

Question 6

What are examples of immediate relationships (QUALIFIED RELATIVE)

Answer 6

Parent, Child, Sibling

Question 7

What are examples of extended relationships (QUALIFIED RELATIVE)

Answer 7

Grandparents and ancestors, Grandchildren and descendants, Uncles or aunts, Nephews or nieces

(COUSINS do not meet the relationship test, but can satisfy the household test

Question 8

What does member of household mean

Answer 8

If an unqualified person lives with the taxpayer all year as a member of the taxpayer’s household.

Example is a cousin

Question 9

Gross taxable income - ????

Answer 9

A person’s gross income for the year must be less than $5,050. Means all income the person received in the form of money, goods, property, and services that is not exempt from tax (Taxable interest income and taxable scholarships

IT DOES NOT INCLUDE SOCIAL SECURITY BENEFITS FOR LOW-INCOME TAXPAYERS.