Individual Taxes: Filing Status and Exemptions

Question 1

Tax payers can file a joint return

Answer 1

if they are not Legally seperated

Question 2

The term “surviving spouse” means

Answer 2

a taxpayer whose spouse died during either of the two taxable years immediately preceding the current taxable year, and who maintains his or her home where a dependent resides

Question 3

The limit for children is $2,000, to be taxed at their own rate

Answer 3

Chris has interest income of $3,000. Subtracting the $1,050 standard deduction for dependents, $1,950 of income is taxable

3000 income minus $2000 limit = $1000 taxed at parents rate. $950 taxed at kids rate