Filing Status & Exemptions, Req & Penalties (1)

Question 0

HEAD OF HOUSEHOLD

In determining the cost of maintaining the household, WHAT is included?

Answer 0

1. Cost of FOOD consumed in home
2. MORTGAGE INTEREST
3. Real Estate Taxes
4. RENT
5. Utilities
6. Repairs

Question 1

HEAD OF HOUSEHOLD status is available to Unmarried taxpayer who:

Answer 1

1. Maintains household & provides for MORE than 50% of the year the cost of:
2. Your QUALIFYING CHILD or ANY other RELATIVE who is a DEPENDENT as member of household

Question 2

HEAD OF HOUSEHOLD

What is the special exception for the taxpayer’s parents?

Answer 2

NOT required to live with taxpayer
BUT taxpayer MUST maintain MORE than 50% of parents’ HOME or NURSING HOME Costs
(Parent MUST qualify as dependent)

Question 3

QUALIFYING WIDOW(ER) w/ dependent child
3 requirements for a taxpayer to elect QUALIFYING WIDOW(ER):

Answer 3

1. Taxpayer has NOT remarried AND
2. Maintains >50% of cost of home WHERE
3. Dependent child resides for ENTIRE year

Question 4

QUALIFYING WIDOW(ER)
How many years after death of spouse can Qualifying Widow(er) be claimed?

Answer 4

TWO years following the death of spouse

In the year of death claim Married Filing Jointly

Question 5

There are TWO ADDITIONAL STANDARD DEDUCTIONS, who are these available to?

Answer 5

To the taxpayer who is 65 (or Older) or Blind

(This is added to standard deduction
Single or HOH =$1,500
Married or Surviving Spouse =$1,200)

Question 6

For dependents, How is the SUPPORT TEST met?

Answer 6

Taxpayer must provide >50% of the dependents support

Includes room & board, med exp, tuition, purchase of capital assets such as a car, etc

Question 7

QUALIFYING CHILD

What are the 6 tests for a Qualifying Child

Answer 7

1. Support Test
2. Relationship Test
3. Age Test
4. Abode Test
5. Joint Return Test
6. Citizenship Test

Question 8

For a QUALIFYING CHILD, What relationship is needed to meet the RELATIONSHIP TEST?

Answer 8

1. Son or daughter, or descendant (grandchild)
2. Adopted child or Stepchild
3. Eligible Foster child
4. Brother or sister (or half…)
5. Descendants of any of the above
   (NOT COUSINS)

Question 9

AGE TEST

What age must be met for the Age Test?

Answer 9

UNDER 19, or if FULL-time student, UNDER 24

Full-time student means enrolled at least 5 months during the year

Question 10

ABODE TEST

Under this test, a QUALIFYING CHILD must live with the taxpayer for how long during the year?

Answer 10

MORE than one-half of the year

Question 11

For a QUALIFYING RELATIVE, What relationship is needed to meet the RELATIONSHIP TEST?

Answer 11

1. Father, mother or ancestor (grandparent)
2. Step father/mother
3. Nephew or niece
4. Uncle or aunt
5. In-Laws
6. None of above (MUST be member of taxpayer’s household entire year)

Question 12

What are the 5 Tests of a QUALIFYING RELATIVE?

Answer 12

1. Support Test
2. Relationship Test
3. Gross Income Test
4. Joint Return Test
5. Citizenship Test

Question 13

To meet the GROSS INCOME test for a QUALIFYING RELATIVE, what is the gross income limit?

Answer 13

LESS than $3,900

The Exemption amount for 2013

Question 14

JOINT RETURN TEST

For QUALIFYING CHILD and RELATIVE, how is the Joint Return Test met?

Answer 14

The dependent does NOT file a joint return

(if not required to file a joint return, d\but does ONLY to receive a refund of w/held taxes then does NOT DISQUALIFY dependent)

Question 15

CITIZENSHIP TEST

How does a dependent meet the Citizenship Test?

Answer 15

MUST be a CITIZEN or RESIDENT of the U.S., OR RESIDENT of CANADA or MEXICO

Question 16

MULTIPLE SUPPORT AGREEMENTS

What are the rules to Qualify under a Multiple Support Agreement?

Answer 16

1. Those party to the agreement MUST meet the other Dependency Requirments
2. To be Entitled to Deduction, you MUST contribute MORE than 10%
3. NO one party contributes MORE than 50%
4. The WRITTEN Consent MUST be filed with the return

(This is an exception to the dependency rules - in that you could contribute Less than 50% of support, but still claim deduction under the Multiple Support Agreement)

Question 17

As an Exception to the Dependency Rules, When is a NON-Custodial parent entitled to the dependency exemption?

Answer 17

ONLY if written consent is given by the custodial parent

Question 18

Generally, what level of Gross Income would require an individual to file a tax return?

Answer 18

whe Gross Income exceeded the STANDARD DEDUCTION plus the EXEMPTION AMOUNT

Question 19

STATUTE OF LIMITATIONS for a Tax Return

What is the General Rule of Statute of Limitations for a tax return?

Answer 19

3 Years - begining the Later of the Date the return was Filed OR the Due Date of the return

Question 20

STATUTE OF LIMITATIONS for a Tax Return
What is the amount of OMISSION OF INCOME needed to increase the Statute of Limitations AND what is the new Statute of Limitations for the OMISSION OF INCOME?

Answer 20

• at LEAST 25%

- 6 Years

Question 21

STATUTE OF LIMITATIONS for a Tax Return

What is the Statute of Limitation on a FRAUDULENT RETURN?

Answer 21

NO LIMITATION

Question 22

STATUTE OF LIMITATIONS for a Tax Return

What is the Statute for requesting a refund for prior taxes paid?

Answer 22

The LATER of the 3 Year Period (General Statute) OR 2 Years from the date the tax was paid.

Question 23

STATUTE OF LIMITATIONS for a Tax Return

What is the Statute for requesting a refund from a Bad Debt or Worthless Security?

Answer 23

7 Years