Filing Requirements - Dependents

Question 1

When was the last year of a personal exemption?

Answer 1

2017. Until 2018, taxpayers were allowed personal exemptions for themselves and any qualifying depends.

Question 2

What years will the personal exemption be $0?

Answer 2

From 2018 to 2015.

Question 3

What 3 things does having a dependent qualify you for?

Answer 3

Head of household, child tax credit, and earned income credit amounts.

Question 4

Who qualifies as a dependent?

Answer 4

A qualifying child or relative.

Question 5

T/F: A spouse can be a dependent?

Answer 5

No

Question 6

4 Tests to be a Qualifying Child - RAPS

Answer 6

Relationship Test
Age Test
Principal Residence Test
Self sufficient

Question 7

What relationship must you have to be a qualifying child?

Answer 7

Son
Daughter
Step son/daughter
Brother - Sister
Step Brother - Sister
Any descendant of theses.
Grandkids, nieces and nephews.

Question 8

T/F Foster children aren’t qualifying children under the relationship test for dependency.

Answer 8

False

Question 9

T/F Adopted children aren’t qualifying children under the relationship test for dependency.

Answer 9

False

Question 10

To be a qualifying child, the kid must be under what age?

Answer 10

Under 19 or under 24 if a full-time student.

Question 11

What is a full-time student considered for dependency testing?

Answer 11

The child must be in school for 5 months of enrollment registration or in an on farm training course.

Question 12

How much income does a child need to earn to be self-supporting?

Answer 12

Provide over 1/2 of their own support.

Question 13

What are the 4 tests for a Qualifying Relative? ISRC

Answer 13

Income - Earn less than $4,300
Support - More than 50% of the dependents support
Relationship/Residence - Related or reside.
Child - Must not be a qualifying child of someone else.

Question 14

How long does the relative need to live with the resident to be a qualifying resident for dependency purposes?

Answer 14

The residence is satisfied if the relative lives in the house for the entire year.

Question 15

What type of relationship is required to be a qualifying relative?

Answer 15

Extended or immediate family. The relationship need be present to only one of the family members.

Question 16

T/F A divorce doesn’t allow you to claim an extended family member as a qualifying relative?

Answer 16

False

Question 17

Who is considered your extended family?

Answer 17

Grandparents, ancestors.
Grandchildren, decendants.
Uncles or aunts.
Niece and nephew.

Question 18

What is an immediate relationship?

Answer 18

An immediate relationship is a parent, natural adopted step parent, father/mother-in law, children, son/daughter in law or sibling or step sibling, foster child, 1/2 brother/sister, adopted brother/sister, step brother or sister.

Question 19

T/F A cousin can be a qualifying relative?

Answer 19

True - a cousin can be a qualifying relative IF they’ve lived at the residence for the entire year.

Question 20

Gross income of the qualifying relative must be less than…?

Answer 20

$4,300 income received thats NOT exempt from tax.

Any expenses from rental property don’t reduce rental income for this test.

Question 21

What is gross income for a business factored into if someone is a qualifying relative?

Answer 21

Gross income from the business minus cost of goods sold. Plus misc. income from a business.

Question 22

T/F Unemployment benefits count as gross income for relationship testing?

Answer 22

True

Question 23

T/F Social security income is included in gross income for relationship testing?

Answer 23

False, if they don’t have gross income.

Question 24

How do you qualify for the support test?

Answer 24

You provide more than 50% of economic support.

Question 25

What items are included in the support test?

Answer 25

Welfare benefits Social security benefits Support provide by exemption claimant (dependent) or any other person. Money Items Money spent on such food, clothing, shelter, utilities, medical and dental care, eduction, child care, vacations, scholarship received by a dependent

Question 26

What items are excluded from the support test?

Answer 26

Taxes and life insurance received Capital items - furniture, cars, appliances. Can't be included if they are for the family and benefit the entire household.

Question 27

How are items obtained for support that weren't purchased with other than cash accounted for?

Answer 27

FMV of item.

Question 28

Does support dependent received get split amongst dependents?

Answer 28

Yes

Question 29

Divorced or separated parents need not meet the support test if both parents meet the following conditions..

Answer 29

Both provide more than 50% of support Both had custody for more than 50% of the year Lived apart last 1/2 of year No multiple support agreement in effect.

Question 30

What form is the non-custodial parent required by the custodial parent to claim a child on a tax return?

Answer 30

Form 8332. You would need to compel the custodial parent to sign form 8332 in court.

Question 31

What is a multiple support agreement?

Answer 31

A multiple support agreement where a group of people agree to provide more than 50% of the support and the person claiming the dependent provides more than 10%. No other person may supply more than 50% of the support. Each person who provides more than 10% must sign a consent that is attached to the person claiming the exemption.

Question 32

What is not a qualifying child test for the qualifying relative?

Answer 32

The child must not be a qualifying child for any other taxpayer.

Question 33

What must be obtained to claim an adopted child?

Answer 33

ATIN

Question 34

T/F A dependent that dies before year end can't be claimed as a dependent.

Answer 34

False

Question 35

T/F A child born in December 2020, can't be claimed as a dependent in 2020.

Answer 35

False

Question 36

Can you claim someone as a dependent on a tax return who has a child they claim as a dependent?

Answer 36

No.

Question 37

Can you claim your daughter who is filing a joint return?

Answer 37

No, they must be MFS or if they only file a joint return to get a refund.

Question 38

What types of citizens can be claimed as a dependent?

Answer 38

U.S. Citizen, resident, or national. A national is person whose parent is a U.S. citizen. Canadian resident Mexican resident