Unit 2: Determining Filing Status and Residency

Question 1

What is the purpose of a taxpayer’s filing status?

Answer 1

To determine filing requirements, standard deductions, eligibility for certain credits, and amounts of tax owed.

Question 2

How many filing statuses does the IRS recognize?

Answer 2

Five

Question 3

What determines a taxpayer’s marital status for tax purposes?

Answer 3

Their marital status on the last day of the year (December 31).

Question 4

Can Registered Domestic Partners (RDPs) file a joint return?

Answer 4

No, federal law does not allow RDPs to file a joint return.

Question 5

What is the filing status for a taxpayer who is unmarried on December 31?

Answer 5

Single

Question 6

What are the conditions for filing as ‘Single’?

Answer 6

• Unmarried
• Legally separated under a decree of divorce or separate maintenance
• Legally divorced by the end of the year.

Question 7

What advantages does ‘Married Filing Jointly’ (MFJ) offer?

Answer 7

Typically offers more tax advantages than filing separately, allows combined income reporting, and provides a higher standard deduction.

Question 8

What is required for a couple to file a joint return?

Answer 8

Both spouses must agree to sign the joint return.

Question 9

What is the status of a widowed taxpayer for filing purposes?

Answer 9

They can use the married filing jointly status if their spouse died during the year and they do not remarry in the same year.

Question 10

What is the ‘Married Filing Separately’ (MFS) status?

Answer 10

Allows each spouse to report their own income, exemptions, credits, and deductions on separate returns.

Question 11

What are some limitations of the MFS filing status?

Answer 11

• Higher tax rates at the same income levels compared to MFJ
• Limited capital loss deduction
• Standard deduction is half that of MFJ.

Question 12

What might lead a couple to choose MFS over MFJ?

Answer 12

To keep finances separate, protect from tax liabilities, or if it results in a lower overall tax bill.

Question 13

What is the deadline for amending a filing status from joint to separate?

Answer 13

The unextended due date of the original return.

Question 14

What is a common reason for choosing MFS to avoid refund offsets?

Answer 14

To prevent a refund from being offset by the other spouse’s outstanding debt.

Question 15

What is the filing status for a married couple who amends their joint return to a separate return?

Answer 15

Married Filing Separately

(MFS)

This status makes each spouse responsible only for their own tax liability.

Question 16

What is the time frame for a personal representative to change a joint return to a separate return for a deceased taxpayer?

Answer 16

Up to one year after the filing deadline

This is an exception to the usual deadlines for amending returns.

Question 17

What form must be filed to change from MFS to MFJ?

Answer 17

Form 1040-X

Taxpayers have three years to file this amended return.

Question 18

What are the requirements to qualify for Head of Household (HOH) status?

Answer 18

• The taxpayer must be single, divorced, legally separated, or considered unmarried.
• The taxpayer must have paid more than half the cost of keeping up a home.
• A qualifying person must have lived in the home for more than half the year.

Question 19

What types of expenses count towards maintaining a home for HOH status?

Answer 19

• Rent
• Mortgage interest
• Property taxes
• Home insurance
• Repairs
• Utilities
• Food eaten in the home

Question 20

What is a ‘qualifying person’ for HOH purposes?

Answer 20

• A qualifying child
• A married child who can be claimed as a dependent
• A dependent parent
• A qualifying relative that meets certain relationship tests

Question 21

Can a taxpayer file as HOH if their qualifying person is a dependent parent not living with them?

Answer 21

Yes, as long as the taxpayer pays more than half the cost of keeping up the parent’s main home.

Question 22

Can a taxpayer qualify for HOH if their dependent child is born or dies during the year?

Answer 22

Yes, if the taxpayer provided more than half the cost of keeping up the home while the child was alive.

Question 23

What must a custodial parent do to release a dependency exemption to a noncustodial parent?

Answer 23

Sign Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent.

Question 24

What conditions must be met for a married person to be ‘considered unmarried’ for tax purposes?

Answer 24

• Must not file a joint return with their spouse.
• Must pay more than half the cost of a home.
• Must not live with the spouse during the last six months of the year.

Question 25

What are the **requirements** for a taxpayer to be **considered unmarried** for tax purposes?

Answer 25

A taxpayer must meet all the following conditions: * Not file a joint return with their spouse. * Pay more than half the cost of a home that is the main residence of a child for more than half the year. * Not live with a spouse during the last six months of the tax year. * Be able to claim an exemption for the child.

Question 26

Can a **legally married person** claim head of household status?

Answer 26

Yes, if they meet the requirements to be 'considered unmarried'.

Question 27

What is the unique rule for **U.S. citizens married to nonresident aliens** regarding head of household status?

Answer 27

They may elect to file as head of household by disregarding the nonresident alien spouse, provided they do not file jointly and have a qualifying child or dependent.

Question 28

What is the definition of a **qualifying surviving spouse** (QSS)?

Answer 28

It receives the same standard deduction and tax brackets as married taxpayers filing jointly, applicable if the surviving spouse remains unmarried and has a qualifying dependent.

Question 29

What filing status applies in the year of a **spouse's death**?

Answer 29

The surviving spouse can generally file a joint return or as married filing separately (MFS).

Question 30

What **conditions** must be met to use the **qualifying surviving spouse status** for two years after a spouse's death?

Answer 30

The surviving spouse must: * Not have remarried before the end of the year. * Have been eligible to file a joint return in the year of death. * Have a qualifying child. * Have furnished over half the cost of keeping up the child’s main home.

Question 31

What is an **annulment** in tax terms?

Answer 31

A legal procedure that declares a marriage null and void, retroactively making the couple legally unmarried.

Question 32

What are the **two categories** of aliens for tax purposes?

Answer 32

* Nonresident aliens * Resident aliens

Question 33

How are **resident aliens** taxed?

Answer 33

They are typically taxed on all of their income worldwide.

Question 34

What **tests** determine the tax residency of an alien?

Answer 34

* The green card test * The substantial presence test

Question 35

What is the **green card** test?

Answer 35

An alien is considered a U.S. resident if they are lawful permanent residents at any time during the tax year.

Question 36

What is **Effectively Connected Income** (ECI)?

Answer 36

Income that a foreign person earns from sources within the U.S. connected to a trade or business. ## Footnote Example: A foreign athlete earning money from a special appearance in the U.S.

Question 37

What are the **two criteria** to meet the substantial presence test?

Answer 37

* 31 days during the current tax year * 183 days during the three-year period, including the current year and the two preceding years

Question 38

How is the **183-day requirement** calculated for the substantial presence test?

Answer 38

All days in the current year are counted, plus: * 1/3 of the days in the previous year * 1/6 of the days in the second year before the current year

Question 39

What defines a **nonresident alien** for tax purposes?

Answer 39

An individual who does not meet the green card test or the substantial presence test.

Question 40

What must a nonresident alien do if they earn **U.S.-source income**?

Answer 40

They are required to file a tax return to report their U.S.-source income.

Question 41

What is the **exemption** for certain individuals regarding the substantial presence test?

Answer 41

Days are not counted if the individual qualifies under specific exemptions, such as being a foreign government official or a student.

Question 42

What is the **exemption period** for international students under F, J, M, or Q visas?

Answer 42

They are exempt from the substantial presence test for the **first five calendar years** in the U.S.

Question 43

What **tax obligations** do nonresident aliens with F-1 or J-1 visas have?

Answer 43

They do not have to pay Social Security tax or Medicare Tax on their earnings.

Question 44

What form do individuals claim a **closer connection to their home country**?

Answer 44

Form 8840, Closer Connection Exception Statement for Aliens.

Question 45

Under what conditions can a nonresident alien elect to be **treated as a resident** for tax purposes?

Answer 45

If married to a U.S. citizen or resident and both agree to file a joint return.

Question 46

Azalea and Sergio are married, and both are citizens of Costa Rica. They do not have any dependents. Sergio is a cardiac physician who is legally present in the U.S. on an H-1B work authorization visa. On February 1, 2024, Sergio obtains a green card and becomes a legal U.S. resident. Azalea is not yet eligible for a Social Security number because her immigration paperwork is still being processed. What must Azalea and Sergio attach to their joint return if they choose to file jointly?

Answer 46

An election statement to treat Azalea as a resident alien for the entire tax year.

Question 47

What **filing status** can Elvira use in 2024 after her husband's death?

Answer 47

Qualifying surviving spouse

Question 48

Can Ezequiel and Candra amend their MFS returns to MFJ to claim the EITC?

Answer 48

Yes

Question 49

What filing status should Tania use **after her divorce**?

Answer 49

Head of Household

Question 50

What must Nikkie do **after her marriage annulment** in 2024?

Answer 50

She is not required to amend returns for any prior years, but she must file as single in 2024.

Question 51

When are taxpayers considered **married** for the entire year?

Answer 51

One spouse dies during the year, and the surviving spouse does not remarry.

Question 52

How long must Breton live in Clarence's home for head of household status?

Answer 52

More than half the year.

Question 53

When can a taxpayer amend a **joint tax return to MFS** after the original filing deadline?

Answer 53

Only within the statute of limitations for filing amended returns.

Question 54

What is required for a **U.S. citizen married to a nonresident alien** to file a joint return?

Answer 54

Sign the return and agree to be taxed on their worldwide income.

Question 55

# True or False: A dependent parent does not have to live with the taxpayer to qualify for head of household status.

Answer 55

True

Question 56

Who qualifies for the **married filing separately** (MFS) status?

Answer 56

Taxpayers who are married and choose to file separate returns.

Question 57

Who may file as single because they were married for less than one month during the taxable year?

Answer 57

**Both** may file as single.

Question 58

If one spouse **refuses to file jointly**, what must both spouses do?

Answer 58

They must both file separate returns.

Question 59

Which **dependent relative** qualifies a taxpayer for head of household filing status?

Answer 59

A parent who lives in his own home and not with the taxpayer.

Question 60

Harish is 39 years old and has lived apart from his wife, Eleanor, since February 1, 2024. Their divorce was not yet final at the end of the year, and they were not legally separated under a separate maintenance decree. They have two children, a son, age fifteen, and a daughter, age sixteen. After Harish and Eleanor split up, their son lived with Harish. Their daughter chose to live with Eleanor. Harish provides all the support for the minor child living with him. Eleanor refuses to file jointly with Harish in 2024. What is the **most beneficial filing status** for Harish after separating from his wife?

Answer 60

Head of household

Question 61

What **dependency relationship** does not qualify for 'qualifying surviving spouse' status?

Answer 61

A foster child

Question 62

Louisa legally separated from her husband in 2024. They share custody of a 13-year-old son. What fact would prevent Louisa from filing as **head of household**?

Answer 62

Louisa’s parents assisted her with 40% of her household costs.

Question 63

Elisabete and Sirius were married in 2020. They have no children or other dependents. They split up two years ago but never officially filed for divorce. What filing statuses can Elisabete and Sirius use since they are **not divorced or legally separated**?

Answer 63

Married filing jointly or married filing separately.

Question 64

Huang is an international student temporarily in the U.S. on an F-1 Visa. Huang arrived in the U.S. on January 3, 2024, and was present in the U.S. all year, studying at Yale University. How long is Huang **exempt** from the **substantial presence test** as an F-1 Visa student?

Answer 64

Five years

Question 65

What is the filing requirement for a taxpayer who has been **legally divorced** by the end of the year?

Answer 65

Treated as **unmarried** for the entire tax year.

Question 66

In 2024, Clarence took legal and physical custody of his ten-year-old grandson, Breton. Breton’s parents were both incarcerated all year, and do not have the right to claim Breton as a dependent. What is the requirement for a qualifying child to be considered for dependency?

Answer 66

Breton must live with his grandfather, Clarence, for **more than half the year**.

Question 67

What is the condition for a **U.S. citizen married to a nonresident alien** to file jointly?

Answer 67

Both spouses must sign the return and agree to be taxed on their worldwide income.

Question 68

What must be true for a taxpayer to qualify for **head of household status**?

Answer 68

The taxpayer must pay more than half of the qualifying parent's household costs.

Question 69

What is required for a **church employee** to file a tax return?

Answer 69

Wages of **$108.28** or more for the year.

Question 70

Baylee is an 18-year-old high school senior in her last year of high school. She worked at a toy store during the Christmas holiday and earned $1,400 in wages in December. She also received $4,600 for a winning scratch-off lottery ticket. Which income triggers a filing requirement for Baylee?

Answer 70

The $4,600 lottery prize.

Question 71

What is the requirement for a **foster child** to qualify as a **dependent**?

Answer 71

A foster child does not qualify for the qualifying surviving spouse filing status.

Question 72

What is the definition of a '**qualifying child**' for the purposes of the 'qualifying surviving spouse' filing status?

Answer 72

A qualifying child can be an adopted child, biological child, or stepchild, but does not include a foster child. ## Footnote This rule applies only to qualifying surviving spouse filing status.

Question 73

Can Alexandra claim **head of household status** if Sebastian lived with her for only five months?

Answer 73

No, because he lived with her for **less than half the year**. ## Footnote To qualify, a child must live with the taxpayer for more than half the year.

Question 74

Louisa legally separated from her husband in 2024. They share **custody** of a **13-year-old son**. What is required for Louisa to file as head of household?

Answer 74

Her qualifying child must have lived with her for more than **half the tax year** (over six months). ## Footnote Since her son lived with her for only four months, she does not qualify.

Question 75

Elisabete and Sirius were married in 2020. They have no children or other dependents. They split up **two years ago** but never officially filed for divorce. Although they lived apart all of 2024, they are **neither divorced nor legally separated**. Can Elisabete and Sirius file as head of household?

Answer 75

No, because they do not have any dependents. ## Footnote They can file jointly or separately as they are married.

Question 76

Huang is an international student temporarily in the U.S. on an **F-1 Visa**. Huang arrived in the U.S. on **January 3, 2024**, and was present in the U.S. all year, studying at Yale University. How long is he exempt from the **substantial presence test**?

Answer 76

five years ## Footnote This applies to students temporarily in the U.S. on certain visas (F, J, M, or Q).