R1P1/2- Ind.Tax

Question 1

Define qualifying child for most individual tax factors.

Answer 1

• Must be resident of North America
• Under age 19, or under age 24 if a student
• Eliminate Gross Income Test
• Same principal place same as taxpayer more the one half of the tax year.
• Support Test Changes: Child not contribute more the 1/2 own support

Question 2

Define qualifying relative for most individual tax factors?

Answer 2

• Must be citizen of North America
• Must live with you, unless mother/father or relative closer than a cousin
• You must provide more than 50% support to the individual
• Multiple Support Agreement: More then 10%
• Under Exemption Amt. of Gross Income
• Precludes Dependent Filing a Joint Return

Question 3

Can spouses married filing jointly use different accounting methods?

Answer 3

Yes, if they each own a small business. All non-business income is cash basis.

Question 4

When can a couple file married filing jointly?

Answer 4

They must be married at the end of the year.

If one spouse dies, they must be married at the end of the year.

Question 5

What are the requirements for filing as Head of Household?

Answer 5

• Must have a dependent child
• Must provide more than 50% of the child’s support
• Must live with them more than 50% of the year
• Parents Not Req. to Live with taxpayer
• Dependent Relatives Must Live with Taxpayer

Question 6

What are the requirements for filing as qualifying widower?

Answer 6

Must have a dependent child.

Essentially gets MFJ status for the year of death + 2 tax years

Question 7

Principal Residence for a Dependent Child; The surviving spouse must maintain a household for how long?

Answer 7

The Whole Taxable Year

Question 8

When can you add a Spouse as a Personal Exemption on a Separate Return?

Answer 8

Taxpayer’s Spouse:

• Has NO Gross Income
• Was NOT claimed as a dependent of another Taxpayer

Question 9

When do you pay when you have Extension on your tax return?

Answer 9

• The due date for payment of taxes is April 15th