Unit 3: Dependents and Deemed Exemptions

Question 1

Tests to claim a dependent

Answer 1

Dependent Taxpayer Test

Joint Return Test

Citizenship or Residency Test

Question 2

What is the dependent taxpayer test

Answer 2

you can’t claim a dependent if you can be claimed as a dependent yourself

only one person can claim a dependent

Question 3

What is the joint return test?

Answer 3

you can’t be claimed as a dependent if you file joint returns except if you’re only filing for a refund and both spouses have no tax liability

Question 4

What is the citizenship or residency test?

Answer 4

the dependent must be a citizen or resident of US, CAN, or MEX (w/ exception for foreign born adopted children)

Question 5

What are the dependency rules for a spouse and registered domestic partners?

Answer 5

A spouse can’t be claimed as a dependent.

An RDP can be claim as a dependent but the claimant can’t file HOH if the RDP is the only dependent

Question 6

What are the five tests for a qualifying child?

Answer 6

1. relationship test
2. age test
3. residency test
4. support test
5. tiebreaker test

Question 7

What is the relationship test to claim a qualifying child?

Answer 7

the dependent child must be related to the TP by blood, marriage, or adoption

Question 8

What is the residency test to claim a qualifying child?

Answer 8

the child must have lived with the TP more than 6 months except for temporary absences

Question 9

What is the support test to claim a qualifying child?

Answer 9

the child cannot provide more than 1/2 of his own support

Question 10

What is the age test to claim a qualifying child?

Answer 10

the child must be under the age 19 or under 24 and a FT student, or permanently and totally disabled regardless of age

Question 11

what is the tiebreaker test to claim a qualifying child?

Answer 11

if more than one TP attempts to claim a child as a dependent, the child is treated as a qualifying child in the following sequence:

by the child’s parents, if they file joint returns

by the parent, if only one of the TP is the child’s parent

by the parent with whom the child lived the longest during the year

by the parent with the highest AGI, if the child lived with each parent for the same length of time

by the TP with the highest AGI, if neither of the child’s parents can claim the child as a qualifying child

by a TP w/ a higher AGI than either parents who can also claim the child, but does not

Question 12

What is the rule for claiming a qualifying relative as a dependent?

Answer 12

a qualifying relative can be of any age and does not have to be a family member if she meets the conditions of a qualifying relative

Question 13

What are 4 tests to claim a qualifying relative?

Answer 13

not a qualifying child test

member of household or relationship test

gross income test

support test

Question 14

What is a member of household or relationship test to claim a qualifying relative?

Answer 14

a dependent not related to the taxpayer must live with the taxpayer the entire tax year;

cousins are treated as unrelated persons and must also meet the gross income test

a family member who is related to the taxpayer does not have to live with the taxpayer

a taxpayer may not claim a housekeeper or other household employee as a dependent

Question 15

Which family member is considered related to the taxpayer for the relationship test?

Answer 15

any type of child and their descendants

any type of siblings

any type of parents except foster parents

niece or nephew

in-laws

Question 16

What is the gross income test to claim a qualifying relative?

Answer 16

a qualifying relative cannot earn more than the deemed exemption amount of $2,400 in 2019

Question 17

What is the support test to claim a qualifying relative?

Answer 17

you must provide more than half the dependent’s total support during the year

Question 18

What are special rules for divorced and separated parents to claim the child as a qualifying child?

Answer 18

A custodial parent may permit the noncustodial parent to claim the child.

Question 19

How can a noncustodial parent claim a qualifying child if allowed by the custodial parent?

Answer 19

the noncustodial parent must attach Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent to his tax return

Question 20

What are all the following conditions that apply for a child to be treated as the qualifying child of the noncustodial parent?

Answer 20

the parents are divorced or legally separated, of if they lived apart at all times during the last six months of the year

the child received over half of support for the year from the parents

the child is in custody of one (or both) parents

the custodial parent signs a written declaration (such as Form 8332 or other similar statement)

Question 21

The special rules for divorced and separated parents do not apply to what following items?

Answer 21

determining HOH filin gstatus or eligibility for EITC as these are benefits that can be claimed by the custodial parent

Question 22

How can a custodial parent revoke the release of claim to exemption?

Answer 22

Also using Form 8332 with the copy attached to the tax return for each year the child is claimed after the revocation

Question 23

What is a multiple support agreement?

Answer 23

it is when two or more people jointly provide a for a person’s support

Question 24

What are the rules for multiple support agreement?

Answer 24

family members together must pay more than 1/2 of the person’s total support, but not one member individually pays more than 1/2

the taxpayer who claims the dependent must provide more than 10% of the person’s support.