R1-1 Flashcards
Which of the following is (are) among the requirements to enable a taxpayer to be classified as a “qualifying widow(er)”?
I.
A dependent has lived with the taxpayer for six months.
II.
The taxpayer has maintained the cost of the principal residence for six months.
a.
Neither I nor II.
b.
I only.
c.
Both I and II.
d.
II only.
Choice “a” is correct. The requirements that enable a taxpayer to be classified as a “qualifying widow(er)” are:
The taxpayer’s spouse died in one of the two previous years and the taxpayer did not remarry in the current tax year,
The taxpayer has a child who can be claimed as a dependent,
This child lived in the taxpayer’s home for all of the current tax year,
The taxpayer paid over half the cost of keeping up a home for the child,
The taxpayer could have filed a joint return in the year the spouse died.
Parker, whose spouse died during the preceding year, has not remarried. Parker maintains a home for a dependent child. What is Parker’s most advantageous filing status?
a.
Head of household.
b.
Married filing separately.
c.
Single.
d.
Qualifying widow(er) with dependent child
Choice “d” is correct. A qualifying widow(er) is a taxpayer who may use the joint tax return standard deduction and rates (but not the exemption for the deceased spouse) for each of two taxable years following the year of death of his or her spouse, unless he or she remarries. The surviving spouse must maintain a household that, for the whole entire taxable year, was the principal place of abode of a son, stepson, daughter, or stepdaughter (whether by blood or adoption). The surviving spouse must also be entitled to a dependency exemption for such individual. Parker may file as a qualifying widow(er) since her spouse died in the previous tax year, she did not remarry and she maintained a home for a dependent child. Since qualifying widow(er) is the most advantageous status and Parker qualifies, Parker would file as a qualifying widow(er).
Choice “c” is incorrect. Even though Parker would qualify as single, filing single would give Parker a higher tax liability than the qualifying widow(er) status and therefore is not most advantageous.
Choice “a” is incorrect. Parker would not qualify as head of household for the first two years after the death of Parker’s spouse because one of the requirements for Head of Household status is that the taxpayer is NOT a surviving spouse. (Also, note that the likely reason for this requirement is that filing as Head of Household status would give the qualifying surviving spouse taxpayer a higher tax liability than the Qualifying Widow(er) status, which would be less advantageous.)
Choice “b” is incorrect. Parker would not qualify to file married filing separately.
In which of the following situations may taxpayers file as married filing jointly?
a.
Taxpayers who were legally separated but lived together for the entire year.
b.
Taxpayers who were married but lived apart during the year.
c.
Taxpayers who were married but lived under a legal separation agreement at the end of the year.
d.
Taxpayers who were divorced during the year.
RULE: In order to file a joint return, the parties must be MARRIED at the end of the year. Exception: If the parties are married but are LEGALLY SEPARATED under the laws of the state in which they reside, they cannot file a joint return (they will file either under the single or head of household filing status).
Choice “b” is correct. Per the above rule, taxpayers who are married but lived apart during the year are allowed to file a joint return for the year. The fact that they did not live together during the year has no bearing on the issue.
Choice “c” is incorrect. Per the above rule, taxpayers who are married but lived under a legal separation agreement at the end of the year may not file a joint return. They will generally file either under the single or head of household filing status.
Choice “d” is incorrect. Per the above rule, taxpayers who were divorced during the year may not file a joint return together, as they are not married at the end of the year. [Note, however, that they may become married again in the year and file a joint return with the new spouse.]
Choice “a” is incorrect. Per the above rule, taxpayers who were legally separated but lived together for the entire year may not file a joint return. They will generally file either under the single or head of household filing status.
A couple filed a joint return in prior tax years. During the current tax year, one spouse died. The couple has no dependent children. What is the filing status available to the surviving spouse for the first subsequent tax year?
a.
Surviving spouse.
b.
Married filing separately.
c.
Head of household.
d.
Single.
Choice “d” is correct. For the first subsequent tax year (and all other subsequent tax years) after the death of a spouse with no dependent children, filing status is single.
Choice “a” is incorrect. Filing status is not “surviving spouse” because there are no dependent children.
Choice “b” is incorrect. Filing status is not “married filing separately” in the first subsequent tax year after the death of a spouse since the couple is no longer married.
Choice “c” is incorrect. Filing status is not “head of household” because there are no dependent children and no other qualifying dependents.
A taxpayer’s spouse dies in August of the current year. Which of the following is the taxpayer’s filing status for the current year?
a.
Head of household.
b.
Qualified widow(er).
c.
Married filing jointly.
d.
Single.
Choice “c” is correct. The joint return rates apply for two years following the death of a spouse, if the surviving spouse does not remarry and maintains a household for a dependent child. There is nothing in this question that says whether or not the surviving spouse maintains a household for a dependent child. However, since the question is asking about the current year, the surviving spouse is considered to be married (and thus able to file as married filing jointly) for the entire current year even if the spouse dies earlier in the year (in this case in August).
Choice “d” is incorrect. The filing status is not single for the current year.
Choice “b” is incorrect. The filing status is not qualified widow(er) for the current year.
Choice “a” is incorrect. The filing status is not head of household for the current year.
