Reg 1 Module 1 Flashcards
Filing Requirements
What are requirements to enable a taxpayer to be classified as a Qualifying Widower
- The taxpayer’s spouse died in one of the two previous years and the taxpayer did no 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 of the cost of keeping up a home for the child &
- the taxpayer could have filed a joint return in the year the spouse died.
What is the Support Test under the Qualifying Child
The child must have not provided more that half of their own support
What is the Support Test for the Qualifying Relative
The relative must have not provided more that half of their own support
What is the Under Gross Income Limitation for a Qualifying Relative & what does Non Taxable income include:
Has to be < than 4,150 (2018)
Non Taxable Income: - Social Security - Tax-Exempt Interest Income ( state and municipal interest income) - Tax-Exempt Scholarships
What is the Precludes Dependent Filing A Joint Return Include for a Qualifying Relative
Does not qualify if the relative a dependent MFJ, unless no tax liability exists on both spouses.
Qualifying Relative Vs. Qualifying Non-Relative: What is the support and Live in Rule
For qualifying relative only to maintain half of the support.
For qualifying non-relative, to maintain more than half of the support and has to live with the taxpayer the whole year. EI, cousins and foster parents.
What is the age limit for Qualifying Child?
To be under the age of 19.
19-24 if child is in school full time.
What kind of income does not count have supportive income under the qualifying child rules for college students.
Scholarship Money.