R1 (2) - I N D I V I D U A L T A X A T I O N (exemptions)

Question 1

I.- PERSONAL EXEMPTIONS - Generally

Answer 1

1- Indexed annually for inflation.

2-Year 2015 is $4,000

Question 2

I.- PERSONAL EXEMPTIONS - for Dependents

Answer 2

Not be allowed personal exemption on their own returns

Question 3

I.- PERSONAL EXEMPTIONS - Married Taxpayers

Answer 3

1- Each Spouse Receives Personal Exemption

2- Spouse as Personal Exemption on a Separate Return

Question 4

I.- PERSONAL EXEMPTIONS - Birth or Death d uring Year

Answer 4

1- He entitled to either personal or dependency for entire year

Question 5

I.- PERSONAL EXEMPTIONS - Phase-Out of Personal and Dependency Exemptions

Answer 5

1- 2% for every $2, 500

2- Example and Criteria - REF, R1 (2.1)

Question 6

II. DEPENDENCY EXEMPTIONS

Answer 6

1- Qualifying Child

2- Qualifying Relative

Question 7

II. DEPENDENCY EXEMPTIONS - Qualifying Child

Answer 7

CARES
   1- Close Relative
   2- Age Limit
   3-Residency and Filing Requirement
   4- Eliminate G ross Income Test
    5-Support Test Changes

Question 8

CARES - Close relatives ?

Answer 8

son, daughter, stepson, stepdaughter, brother, sister, stepbrother, stepsister, or a descendant of any of these

Question 9

CARES - Age Limit ?

Answer 9

1- younger than the taxpayer and
2- under age 19
3- age 24 in the case of a full-time student

Question 10

CARES - Residency and Filing Requirements

Answer 10

1- Have same principal place of abode مسكن as the taxpayer for more than 1.5 of the tax year.

Question 11

CARES - Eliminate Gross Income Test

Answer 11

exemption is required

Question 12

CARES - Support Test Changes

Answer 12

If the child did not contribute more than one-half of his or her own support. The requirement that the taxpayer (parent) provides over one-half of the child’s support is eliminated

Question 13

II. DEPENDENCY EXEMPTIONS - Qualifying Relative

Answer 13

SUPPORT test applied

Question 14

SUPPORT Test - (greater than 50%)

Answer 14

1- The taxpayer must have supplied more than one-half (greater than 50%) of the support of a person in order to claim him or her as a dependent

2- Scholarships are not included

3-Social Security and state welfare payments included

Question 15

SUPPORT - Multiple Support Agreements (more than 10%)

Answer 15

A contributor must have contributed more than 10% of the person’s support in addition to meeting the other dependency tests in order to be able to claim him or her as a dependent

Question 16

SUPPORT - Under Exemption Amount of (Taxable) Gross Income

Answer 16

A person may not be claimed as a dependent unless the dependent’s gross income is less than the exemption amount ($4,000 during the taxable year 201 5).

Question 17

SUPPORT- Precludes Dependent Filing a Joint Return

Answer 17

A taxpayer will lose the exemption for a married dependent who files a joint return

Question 18

SUPPORT - Citizenship

Answer 18

Only Citizens of US or Residents of US, Mexico,

or Canada

Question 19

SUPPORT - Relative

Answer 19

Taxpayer Lives with the Individual (if Nonrelative) for the Whole Year

Question 20

SUPPORT - Example

Answer 20

Ref. R1 (2.2)