M1 Filing Requirements and Filing Status

Question 1

MCQ-08783
Where is the deduction for qualified business income (QBI) applied in the tax formula?

Answer 1

As a deduction FROM adjusted gross income separate from the standard deduction and itemized deductions

Question 2

MCQ-08786
Which of the following is an itemized deduction?

Answer 2

Qualified charitable contributions of property

Question 3

MCQ-06533
A taxpayer’s spouse dies in August of the current year. Which of the following is the taxpayer’s filing status for the current year?

Answer 3

Married filing jointly

Question 4

MCQ-05278
In which of the following situations may taxpayers file as married filing jointly?

Answer 4

Taxpayer who were married but lived apart during the year.

Question 5

MCQ-06432
John and Theresa are in the process of obtaining a divorce. Although they are not legally, separated, John moved out of the family home in October of Year 1 and moved into an apartment nearby. John and Theresa’s two children, Jenna and Stella, lived with Theresa in the family home for more than half of the year. What filing status can Theresa use to file Year 1 tax return?

Answer 5

Married filing jointly/seperately.

Question 6

MCQ-06433
Mark and Molly met at a New Year’s Eve party held December 31, Year 1. They instantly bonded, fell madly in love, and were married at 11:38 p.m. that night. Identify Mark’s filing status for Year 1.

Answer 6

Married filing jointly

Question 7

MCQ-06434
Mort and Mindy met at a New Year’s Eve party held December 31, Year 1. They instantly bonded, fell madly in love, and were married at 11:38 p.m. that night. Sadly, Mort passed away November 15, Year 2. What filing status should Mindy use for Year 2?

Answer 7

Married filing jointly.

Question 8

MCQ-08624
Thompson’s spouse died in Year 1. Thompson did not remarry in Year 2 and lived alone the entire year. What is Thompson’s Year 2 filing status?

Answer 8

Single

Question 9

MCQ-08902
As of December 31, the Mitchells were legally separated and maintained separate households for the entire year. The Mitchells have no children. What filing status should Mr. Mitchell claim for the year?

Answer 9

Single

Question 10

MCQ-14626
In which of the following scenarios would the head of household filing status be available to the taxpayer?

Answer 10

A single taxpayer maintains a separate home for his parent, who qualifies as a dependent.

Question 11

MCQ-06703
Four years ago, when Cox’s spouse died, Cox filed a joint tax return for that year. Cox did not remarry, but continued to provide full support for a minor child who has been living with Cox. What is Cox’s most advantageous filing status for the current year?

Answer 11

Head of household.

Question 12

MCQ-01404
Which of the following is (are) among the requirements to enable a taxpayer to be classified as a “qualifying widow(er)”?
I. A dependent has lived with the taxpayer for six months.
II. The taxpayer has maintained the cost of the principal residence for six months.

Answer 12

Neither I nor II

Question 13

MCQ-06435
Mort and Mindy met at a New Year’s Eve party held December 31, Year 1. They instantly bonded, fell madly in love, and were married at 11:38 p.m. that night. Sadly, Mort passed away November 15, Year 2. In January, Year 3, Mindy gave birth to triplets Mark, Mandy, and Maureen. Assuming that Mindy has not remarried, what filing status should she use for Year 4?

Answer 13

Qualifying widow(er) with dependent child.

Question 14

MCQ-06436
Mort and Mindy met at a New Year’s Eve party held December 31, Year 1. They instantly bonded, fell madly in love, and were married at 11:38 p.m. that night. Sadly, Mort passed away November 15, Year 2. In January, Year 3, Mindy gave birth to triplets Mark, Mandy, and Maureen. The triplets live with Mindy and she provides all of their support. Assuming Mindy has not remarried, what filing status should she use for Year 5?

Answer 14

Head of household.

Question 15

MCQ-06437
In Year 4, after Mindy’s three children have grown and moved out of the house, Mindy (unmarried) moved her mother, Mary, into an assisted living facility for which Mindy pays 75% of the cost. Mindy had not previously lived with Mary, and Mary paid for her own living expenses while she lived in her own home. What filing status should Mindy use for Year 4, assuming Mary moved into the assisted living facility on January 1, Year 4?

Answer 15

Head of household.

Question 16

MCQ-06438
In Year 4, after Mindy’s three children have grown and moved out of the house, Mindy (unmarried) moved her mother, Mary, into an assisted living facility for which Mindy pays 75% of the cost. Mindy had not previously lived with Mary, and Mary paid for her own living expenses while she lived in her own home. What filing status should Mindy use for Year 4, assuming Mary moved into the assisted living facility on August 1, Year 4?

Answer 16

Single

Question 17

MCQ-14930
Which of the following taxpayers would not qualify for the filing status of head of household?

Answer 17

A single taxpayer whose SPOUSE DIED in the preceding tax year and who has a DEPENDENT CHILD living in the household.

Question 18

MCQ-04765
Parker, whose spouse died during the preceding year, has not remarried. Parker maintains a home for a dependent child. What is Parker’s most advantageous filing status?

Answer 18

Qualifying widow(er) with dependent child

Question 19

MCQ-15835
The spouse of a married taxpayer died on January 15, Year 1. The taxpayer’s qualifying child moved to live with grandparents in their home on August 30, Year 2. If the taxpayer did not remarry before the end of Year 2, then which filing status should the taxpayer choose for Year 2?

Answer 19

Head of household

Question 20

MCQ-15606
The Clarks have a 21-year-old son, Alex, who is a full-time student at the state university. Alex received $10,000 in scholarships this year for academic achievement. He also works part time at the university bookstore and earned $5,400 this year. The Clarks paid $7,000 to support Alex this year. Alex was home for two months in the summer and at school for the rest of the year. Alex used the scholarship, the earnings from the part-time job, and the money from his parents as his only source of support this year. Which of the following definitions does Alex meet for the Clarks?

Answer 20

Qualifying child

Question 21

MCQ-15607
The Clarks have a 21-year-old son, Alex, who is a full-time student at the state university. Alex received $10,000 in scholarships this year for academic achievement. He also works part time at the university bookstore and earned $5,400 this year. Alex’s grandparents paid $7,000 to support Alex this year. Alex was home with his parents for two months in the summer and at school for the rest of the year. Alex used the scholarship, the earnings from the part-time job, and the money from his grandparents as his only source of support this year. Which of the following definitions does Alex meet for the Clarks?

Answer 21

Qualifying child

Question 22

MCQ-06162
Anderson, a computer engineer, and spouse, who is unemployed, provide more than half of the support for their child, age 23, who is a full-time student and who earns $7,000. They also provide more than half of the support for their older child, age 33, who earns $2,000 during the year. How many dependents meet qualifying relative or qualifying child rules for the Andersons?

Answer 22

Two

Question 23

MCQ-14622
Jim and Kay Ross contributed to the support of their two children, Dale and Kim, and Jim’s widowed parent, Grant. For Year 27, Dale, a 19-year-old full-time college student, earned $4,500 as a babysitter. Kim, a 23-year-old bank teller, earned $12,000. Grant received $5,000 in dividend income and $4,000 in nontaxable Social Security benefits. Grant and Kim are U.S. citizens and were over one-half supported by Jim and Kay, but neither of the two currently reside with Jim and Kay. Dale’s main place of residence is with Jim and Kay, and he is currently on a temporary absence to attend school. How many people meet the definition of either qualifying child or qualifying relative on the Year 27 joint income tax return for Jim and Kay Ross?

Answer 23

One

Question 24

MCQ-06431
Nicole and Andrew Harris contribute to more than half of the support of their three children, Travis, Luke, and John. Travis, age 20, worked full time at the local deli and earned $20,000. Luke, 18, is a part-time college student who earned $5,000 working as a resident assistant in the student dormitory where he lived half of the year. John, age 25, is an aspiring actor who lives at home with Nicole and Andrew. John earned $2,500 for the three commercials he starred in. Who qualifies as a dependent for Nicole and Andrew under either the rules of qualifying child or qualifying relative?

Answer 24

Luke and John

Question 25

MCQ-14623
John earned $500,000 in his business during the current year, and his wife received investment income of $15,000. John provides
more than half of the support of his 50-year-old widowed sister, who lives with John and earned $45,000 in salary in the current
year. John also provides full support for his two children, an 18-year-old daughter and a 20-year-old son, who is a full-time college
student. The family employs a live-in housekeeper and a live-in butler to assist them with their residence. Both the live-in housekeeper
and the live-in butler provided all of their own support. How many people qualify as either a qualifying child or qualifying relative for
John?

Answer 25

Two

Question 26

MCQ-04458
Dave and Pam Stevens contributed to the support of their three children, Lisa, Tanya, and Hannah, and Pam’s divorced mother, Ellen.
For the current year, Lisa, a 26-year-old sales clerk, earned $27,000. Tanya, a 23-year-old, full-time college graduate student in
accounting, earned $35,000 working for a CPA firm. Hannah, a 20-year old artist, earned nothing during the year, but is still aspiring to
sell her first piece and has signed on with an art studio. Ellen received $10,000 in nontaxable social security benefits and $2,000 in
dividend income. All are U.S. citizens and are over half supported by Dave and Pam. How many dependents do Dave and Pam
Stevens have under the qualifying child and qualifying relative rules?

Answer 26

Three