tax exam 1

Three qualifications to qualify as a dependent

1. citizen of US, or resident of US, Mexico, and Canada

2. must not file joint return with spouse; unless no tax liability if you filed as MFJ/MFS

3. must be either qualifying child or relative

Daphne and Simon recently got married. However, Daphne's mother, Violet, still supports the couple. Daphne and Simon had income this year. How can Daphne be claimed as Violet's dependent?

must file MFS; if they file MFJ and have a tax liability then Daphne cannot be a dependent

Daphne and Simon recently got married. However, Daphne's mother, Violet, still supports the couple. Neither Daphne nor Simon had any income this year. They file as married filing jointly. Will Daphne qualify as Violet's dependent? Why or why not?

Yes, even though they file MFJ, they did not have tax liability so Daphne can still be a dependent

What are the tests to be considered a qualifying child?

relationship- descendent; siblings, foster, step, adopted

age- under the age of 19; under the age of 24 for students, doesn’t apply to disabled

residence- must live with taxpayer for more than ½ of the year, temporary absences don’t count

support- child cannot provide more than ½ of their support

Eloise is 22 years old and lives with her mother, Violet. Violet provides all the support for Eloise. Will Eloise qualify as Violet's qualifying child?

no, fails age test

Eloise is a full-time college student. Now will Eloise qualify as Violet's qualifying child? Why or why not?

Yes, she passes all tests

what are the tests to be considered a qualifying relative?

relationship- descendants, ascendants; live with taxpayer for full year

support- taxpayer provides more than ½ support

gross income- less than 5,200

Marina lives with Portia Featherington. Portia does not provide more than half the support for Marina. Does Marina qualify as Portia's qualifying relative? Why or Why not?

No, fails the support test

Lady Danbury is 55 and lives with her nephew, Simon. Lady Danbury does not provide more than half of her own support and does not make any income. Simon provides 60% of her support.

Will Lady Danbury qualify as Simon’s qualifying child?

no fails the age, relationship tests

Lady Danbury is 55 and lives with her nephew, Simon. Lady Danbury does not provide more than half of her own support and does not make any income. Simon provides 60% of her support.

Will Lady Danbury qualify as Simon’s qualifying relative?

Yes, she meets all tests

What are the typical filing statuses?

single, head of household, married filing jointly, married filing separately

single status

unmarried at the end of the tax year

head of household

unmarried at the end of the tax year, qualifying child/relative

married filing jointly

married at the end of the tax year, file one return with your spouse

married filing separately

married at the end of the tax year, file 2 separate returns

qualifying surviving spouse

when your spouse dies, may still get MFJ tax brackets

Abandoned Spouse

married but may qualify to file as HOH

In order for a widow to file as MFJ, the following criteria must be met:

in the year of spouse’s death

to qualify for Qualifying Surviving Spouse:

1. for the first two years after the spouse’s death

2. qualifying child and maintain more than half of the costs of the household for the child

Prudence and Harry got married in 2020. In 2021, they had a baby girl. In 2022, Harry died. Prudence remained unmarried and provided all the support for her daughter, who lives with her. What is Prudence's filing status in 2022, 2023, 2024, and 2025?

2022- MFJ, 2023- QSS (MFJ), 2024- QSS (MFJ), 2025- HOH

Requirements to file as Head of Household?

unmarried, qualifying person, pay more than half the costs of maintaining home for the dependent, qualifying person has to live with taxpayer

when can a married person be treated as unmarried (abandoned spouse) and can file for Head of Household?

1. married and not file joint return

2. qualifying child and pay more than half the cost of maintaining home for the child

3. lived apart from your spouse for the last 6 months of the tax year

Colin and Penelope are married and have a 5-year old son. Colin left Penelope and she has not been able to contact him since February of the current year. It is now December. Their son lives with Penelope and she provides all his support. What is Penelope's filing status?

HOH, because she qualifies as abandoned spouse