Chapter 3, Problem 17DQ

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption? a.The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. b.The gross income test does not have to be met provided the relative is a student. c.The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. d.The relative must receive less than $4,200 of gross income in order to qualify. e.All of these choices are correct.           Martin, a 50-year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2019? a.$24,400 b.$19,600 c.$12,200 d.$18,350 e.None of these choices are correct.       Which of the following is not a capital asset? a.Stocks b.Land c.Gold d.A personal automobile e.Inventory

How is the unearned income of children treated for tax purposes?  Can parents include the children’s earned (salaries and wages) income on their own return

Jennie’s grandfather paid her tuition this fall to State University (an eligible educational institution). Jennie is claimed as a dependent by her parents, but she also files her own tax return. Can Jennie claim an education credit for the tuition paid by her grandfather? What difference would it make, if any, if Jennie did not qualify as a dependent of her parents (or anyone else)?

Which of the following tax credits can not be transferred to a spouse? The age credits The disability credit The EI and CPP benefits The pension income credits   The claw back of OAS payments will not alter the individual’s net income for tax purposes (True/False)- _________   There is no limit on the amount of the tuition credit that can be transferred to a spouse (True/False)- ________   Adam, who is single supports his 80 years old blind mother who has no income and lives in a nursing home. Which of the following federal tax credit can be claimed for his mother? Disability tax credit only disability tax credit and Canada caregiver tax credit only disability tax credit and eligible tax credit only Canada caregiver credit only.   Joe is self-employed. He might be eligible for all of the following Federal tax credits, except: CPP tax credit EI tax Credit Canada employment Tax Credit Canada workers benefit tax credit.   Elsa is 73 years old. Her 2021 net income for tax…

Margaret's tax return is prepared, but she does non have the money to pay the amount due.  She should?

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.

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.