11 multiple choice, true or false questions of federal income taxation

QUESTION 1 Jennifer supports Ben, her cousin, who lived with her all year. Jennifer also supports two other individuals who do not live with her: JoAnn who is Jennifer's mother, and Morris who is Ben's brotherHow many (total) personal and dependency exemptions may Jennifer claim? (Assume all other requirements are met.) 1 1 2 3 4 2 3 QUESTION 2 Ben, age 23, is a full-time student and single. Ben is supported primarily by his parents. What is the most income that Ben can earn this year without disqualifying Ben as a dependent? $3,200 $5,000 No limit exists. $3,199 QUESTION 3 One requirement for claiming a Qualifying Child is that the taxpayer provide more than 50% of the child's support. True False QUESTION 4 As to the requirements for claiming dependents, which of the following is true? Dependents may earn only $1,000. All dependents must be under the age of 24. Children under the age of 14 with unearned income over the personal exemption amount may not be claimed as a dependent. A dependent may be married and file a joint tax return under certain circumstances. QUESTION 5 Anna is supported entirely by her four children Julie, John, Jane and Joseph who provide her support in the following percentages: Julie 5%, John 10%, Jane 40%, Joseph 45%Assuming a multiple support declaration exists, which of the children may claim Anna as a dependent? Any one of them John, Jane or Joseph Jane or Joseph Joseph only None of them 5 points (Extra Credit) QUESTION 6 Lily, who is divorced, maintains a home in which she and her 15-year-old daughter live. Lily provides the majority of the support for her daughter and for a son, age 23, who is enrolled full-time at the university and lives in the dorm. The son also works in the campus bookstore and earns spending money of $4,001. How many personal and dependency exemptions may Lily claim? 1 2 3 4 QUESTION 7 False Individuals who die before the end of the year cannot be claimed as dependents. True QUESTION 8 Generally, in the case of a divorced couple, the parent who has physical custody of a child for the greater part of the year is entitled to the Qualifying Child dependency exemption. True False QUESTION 9 Which of the following is not considered support for the Qualifying Person support test? Clothing Transportation Portion of home expenses Value of services rendered by the taxpayer for the dependent QUESTION 10 When determining if a Qualifying Person exemption is available, there is an exception to the support test in the case of multiple support declarations. True False QUESTION 11 Mohamed's father is retired and receives $9,000 per year in social security benefits. Monhamed's father saves $2,000 of the benefits and spends the remaining $7,000 for his support. How much support must Mohammed provide for his father to meet the qualifying person support requirement? $ 9,000 $ 9,001 $ 7,000 $ 7,001