Question 1

Sheri and Jake Woodhouse have one daughter, Emma, who is 16 years old. They also have taken in Emma's friend, Harriet, who has lived with them since February of the current year and is also 16 years of age. The Woodhouses have not legally adopted Harriet but Emma often refers to Harriet as her "sister." The Woodhouses provide all of the support for both girls, and both girls live at the Woodhouse residence. Which of the following statements is true regarding whom Sheri and Jake may claim as dependents for the current year?

Accepted Answer

A)  They may claim Emma as a dependent qualifying child but may not claim Harriet as a dependent.
B)  They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying child.
C)  They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying relative.
D)  None of these statements are true.E) A) and C)
F) A) and B)

Question 2

By the end of Year 1, Harold and Jamie Allred had been married for 30 years and have filed a joint return every year of their marriage. Their three sons, Jacob, Larry, and Andi, are ages 13, 16, and 23, respectively, and all live at home and are fully supported by their parents. Andi is employed full time, earning $17,000 in Year 1. Whom can the Allreds claim as dependents?

Accepted Answer

The Allreds may claim Jacob and Larry as...

Question 3

For AGI deductions are commonly referred to as deductions "below the line."

Accepted Answer

A) True 
 B)False

Question 4

A taxpayer who is claimed as a dependent on another's tax return may not claim any dependents on his or her tax return.

Accepted Answer

A) True 
 B)False

Question 5

Tax credits reduce taxable income dollar for dollar.

Accepted Answer

A) True 
 B)False

Question 6

Joanna received $73,200 compensation from her employer, the value of her stock in ABC company appreciated by $11,000 during the year (but she did not sell any of the stock) , and she received $40,200 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

Accepted Answer

A)  $73,200.
B)  $84,200.
C)  $124,400.
D)  $113,400.E) B) and D)
F) C) and D)

Question 7

Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

Accepted Answer

A) True 
 B)False

Question 8

All of the following are tests for determining qualifying child status except the _____.

Accepted Answer

A)  gross income test
B)  age test
C)  support test
D)  residence testE) None of the above
F) A) and B)

Question 9

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following series of inequalities is generally most accurate?

Accepted Answer

A)  Gross income ≥ adjusted gross income ≥ taxable income
B)  Adjusted gross income ≥ gross income ≥ taxable income
C)  Adjusted gross income ≥ taxable income ≥ gross income
D)  Gross income ≥ taxable income ≥ adjusted gross incomeE) A) and C)
F) B) and D)

Exam 4: Individual Income Tax Overview, Dependents, and Filing Status

Tax credits reduce taxable income dollar for dollar.

Correct Answer
verified

A taxpayer who is claimed as a dependent on another's tax return may not claim any dependents on his or her tax return.

Correct Answer
verified

Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

Correct Answer
verified

Correct Answer
verified
The Allreds may claim Jacob and Larry as...
View Answer

For AGI deductions are commonly referred to as deductions "below the line."

Correct Answer
verified

All of the following are tests for determining qualifying child status except the _____.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following series of inequalities is generally most accurate?

Correct Answer
verified

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Correct Answer
verified

Exam 4: Individual Income Tax Overview, Dependents, and Filing Status

Tax credits reduce taxable income dollar for dollar.

Correct AnswerverifiedShow Answer

A taxpayer who is claimed as a dependent on another's tax return may not claim any dependents on his or her tax return.

Correct AnswerverifiedShow Answer

Taxpayers may prepay their tax liability through withholdings and through estimated tax payments.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe Allreds may claim Jacob and Larry as...View AnswerShow Answer

For AGI deductions are commonly referred to as deductions "below the line."

Correct AnswerverifiedShow Answer

All of the following are tests for determining qualifying child status except the _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following series of inequalities is generally most accurate?

Correct AnswerverifiedShow Answer

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Allreds may claim Jacob and Larry as...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified