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Exam 9: Individuals As the Taxpayers

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Question 51

True/False

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Adjusted gross income (AGI) appears at the bottom of page 1 and at the top of page 2 of Form 1040.

A) True
B) False

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Question 52

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Kim, a resident of Oregon, supports his parents who are residents of Canada but citizens of Korea.Kim can claim his parents as dependents.

A) True
B) False

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Question 53

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Darren, age 20 and not disabled, earns $4,100 during 2017.Darren's parents cannot claim him as a dependent unless he is a full-time student.

An increase in a taxpayer's AGI could decrease the amount of charitable contribution that can be claimed.

For the past few years, Corey's filing status has been as follows: 2013 (married/joint); 2014 (married/separate); 2015 (surviving spouse); 2016 (surviving spouse); and 2017 (head of household).Explain what probably has happened.

Surviving spouse filing status begins in the year in which the deceased spouse died.

Which of the following characteristics correctly describes the procedure for the phaseout of exemptions?

Which of the following items, if any, is deductible?

Homer (age 68) and his wife Jean (age 70) file a joint return.They furnish all of the support of Luther (Homer's 90-year old father), who lives with them.In 2017, they received $6,000 of interest income on city of Chicago bonds and interest income on corporate bonds of $48,000.Compute Homer and Jean's taxable income for 2017.

Which of the following taxpayers may file as a head of household in 2017? ​ Ron provides all the support for his mother, Betty, who lives by herself in an apartment in Fort Lauderdale.Ron pays the rent and other expenses for the apartment and properly claims his mother as a dependent. ​ Tammy provides over one-half the support for her 18-year old brother, Dan.Dan earned $4,200 in 2017 working at a fast food restaurant and is saving his money to attend college in 2018.Dan lives in Tammy's home. ​ Joe's wife left him late in December of 2016.No legal action was taken and Joe has not heard from her in 2017.Joe supported his 6-year-old son, who lived with him throughout 2017.

The kiddie tax does not apply to a child whose earned income is more than one-half of his or her support.

During 2017, Esther had the following transactions: $\begin{array} { l r } \text { Salary } & \$ 70,000 \\\text { Interest income on Xerox bonds } & 2,000 \\\text { Inheritance from uncle } & 40,000 \\\text { Contribution to traditional IRA } & 5,500 \\\text { Capital losses } & 2,500\end{array}$ Esther's AGI is:

Sylvia, age 17, is claimed by her parents as a dependent.During 2017, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Sylvia's taxable income is:

Currently, the top income tax rate in effect is not the highest it has ever been.

Match the statements that relate to each other. -Territorial system of taxation

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2017 is $16,450 ($12,700 + $1,250 + $1,250 + $1,250).

Since an abandoned spouse is treated as not married and has one or more dependent children, he or she qualifies for the standard deduction available to head of household.

In order to claim a dependency exemption for other than a qualifying child, a taxpayer must meet the support test.Generally, this is done by furnishing more than 50% of a dependent's support.What exceptions exist, if any, where the support furnished need not be more than 50%?

In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?

Which, if any, of the statements regarding the standard deduction is correct?