How do two taxpayers determine who has priority to claim a person as a dependent if the person is a qualifying child of two taxpayers when neither taxpayer is a parent of the child (assume the child does not qualify as a qualifying child for either parent)? How do parents determine who claims the child as a dependent if the child is a qualifying child of both parents when the parents are divorced or file separate tax returns?
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PRINCIPLES OF TAXATION F/BUS.+INVEST.
- In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. Whether taxpayers rent or own their residence. d. Taxpayers filing status (e.g., single, married, filing jointly). e. Whether married taxpayers decide to file separate returns. f. The taxpayers uninsured personal residence was recently destroyed by a wildfire (the region was declared a disaster area by the Federal government). g. The number of dependents the taxpayer can claim.arrow_forwardHow do two taxpayers determine who has priority to claim the dependency exemption for a qualifying child of both taxpayers when neither taxpayer is a parent of the child (assume the child does not qualify as a qualifying child of either parent)?arrow_forwardWhich of the following is a condition a taxpayer must meet to claim injuries spouse? The spouse: A. Didn't claim a refundable tax credit on the joint return. B. Is required to pay the past-due amount. C. Must file married filing separately. D. Received and reported income on a joint return.arrow_forward
- In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? The age of the taxpayer(s). The health (i.e., physical condition) of the taxpayer. Whether taxpayers rent or own their residence. Taxpayer’s filing status (e.g., single, married, filing jointly). Whether married taxpayers decide to file separate returns. The number of dependents the taxpayer can claim.arrow_forwardWhich one of the following statements describes the consequences of using the filing status 'married filing jointly'? A spouse may not be held responsible for tax if that spouse had no income. The tax rates are generally more favorable than that of two single individuals if one has high income and the other has low income. If it is elected on an original return, it may be changed on an amended return.arrow_forwardIf an individual is claimend as a dependent by another taxpayer, qualified tuition and expenses paid by that individual during the tax year are instead treated as paid by the taxpayer who is allowed the dependency deduction for purposes of?arrow_forward
- Which of the following statements is false regarding the earned income credit (EIC)?  Multiple Choice  If certain requirements are met, a taxpayer may receive advance payments of EIC.  Maximum amount of the credit depends on the earned income and number of children.  A taxpayer without children cannot claim the credit.  The credit is refundable.arrow_forwardFill in the blank. When taxpayers file jointly and only one spouse owes a past- due amount, the other spouse may be considered anarrow_forwardIf taxpayers are not allowed to claim deductions for dependency exemptions, is it necessary to determine who qualifies as a taxpayer's dependents? Yawl's thoughts? Ms. Stephaniearrow_forward
- Which one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state? a.The husband and wife must live apart for the entire year. b.The husband and wife must live apart for more than half the year. c.The husband and wife must be in the process of filing for a divorce. d.Only one of the spouses can be working and earning an income. e.None of these choices are correct.arrow_forwardWhat is the purpose of the provision in the tax law that taxes unearned income of certain minor children at the trust and estate tax rates? The provision is designed to prevent   from transferring   generally to   in order to take advantage of the   tax rate.arrow_forwardWhich of the following statements is CORRECT regarding the effect of the generation-skipping transfer tax (GSTT) and the transferor's spouse?  A)Only an individual who is currently married to the transferor will always be deemed to be in the same generation as the transferor regardless of the difference in their ages.  B)Any individual who has been married at any time to the transferor is always deemed to be in the same generation as the transferor regardless of the difference in their ages or whether they are married or have been divorced at the time of the transfer.  C)A transferor may make a generation-skipping transfer to any individual who has been married at any time to the transferor without restriction.  D)Only an individual who is currently married to the transferor at the time of the transfer will always be deemed to be in the same generation as the transferor.arrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT