Filing Status

Question 1

What filing status is a surviving spouse allowed to use?

Answer 1

Can file married-filing-joint for two years after spouse’s death if taxpayer provides over half the cost of maintaining a home for a dependent child whose principal place of abode is with the taxpayer.

Question 2

Describe the concept of kiddie tax.

Answer 2

1. Taxable income for child is divided into unearned and other income;
2. Net unearned income in excess of $2,000 (for 2013) for children less than age 18 and children between 19 and 23 who are full-time students is taxed at parents’ rate. However, children between 18 and 23 are included only if their earned income does not exceed 50% of their total support for the year.

Question 3

Define “abandoned spouse.”

Answer 3

1. Spouse doesn’t live in house for last 6 months of year;

2. Maintain a household for at least 6 months for dependent child.

Question 4

What factors can increase a taxpayer’s standard deduction?

Answer 4

1. Taxpayer is blind at year-end;

2. Taxpayer reaches 65 by year-end.

Question 5

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

Answer 5

Taxpayer must provide more than half of the cost of maintaining the household for a qualifying child or a qualifying relative (a non-relative 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.