In each of the following independent cases, determine the taxpayer’s filing status and the number of dependents the taxpayer is allowed to claim. 1. Edith and her spouse support their 35-year-old son, Slim. Slim is a full-time college student who earned $5,500 over the summer in part-time work. a. Married filing jointly with one dependent. b. Married filing jointly with two dependents. c. Married filing jointly with no dependents. d. Married filing separately with two dependents. 2. Alexandra is a blind widow (her spouse died five years ago) who provides a home for her 18-year-old nephew, Newt. Newt’s parents are dead and so Newt supports himself. Newt’s gross income is $5,000. a. Single with one dependent. b. Single with no dependents. c. Head of household with no dependents. d. Head of household with one dependent.

Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the current year. She receives 30,000 per year in tax-exempt municipal bond interest. Adam and Tanya are married and have no children. Adam and Tanyas 100,000 taxable income is comprised solely of wages they earn from their jobs. Calculate and compare the amount of tax Sheila pays with Adam and Tanyas tax. How well does the ability-to-pay concept work in this situation?

Bill and Anne Chambers are married and file a joint return. They have no children. Their college friend Ryan lived with them for the entire current tax year. Ryan is 40 years old and earned 2,000 at a part-time job and received 25,000 in municipal bond interest. Ryan is a citizen of the United States and is unmarried. Which of the following statements is true regarding claiming Ryan as a dependent on the Chamberses tax return? a. If Ryan earns 15,000 in self-employment income in addition to the part-time job and municipal bond interest, he will qualify as a dependent on the Chamberses tax return. b. Ryan qualifies as a dependent for the Chamberses under the qualifying child rules. c. As long as Ryan does not provide more than half of his own support, he qualifies as a dependent for the Chamberses under the qualifying relative rules because he lived with them for the entire year. d. As long as the Chamberses provide more than half of Ryans support, he qualifies as a dependent for the Chamberses under the qualifying relative rules.

Abbe, age 56, is married and has two dependent children, one age 14, and the other a 21 -year-old full-time student. Abbe has one job, and her husband, age 58, is not employed. If she expects to earn wages of $50,000, file jointly, and take the standard deduction, how many allowances should Abbe claim on her Form W-4? 4 5 7 8 9