Question
1A Rank the following three single taxpayers in order of the magnitude of taxable income. Assume none of the taxpayers contributed to charity this year.
1A
Rank the following three single taxpayers in order of the magnitude of taxable income. Assume none of the taxpayers contributed to charity this year.
Note: First means highest taxable income, third means lowest taxable income.
Ahmed | Baker | Chin | |
---|---|---|---|
Gross income | $ 93,000 | $ 93,000 | $ 93,000 |
Deductions for AGI | 14,750 | 7,750 | 0 |
Itemized deductions | 0 | 7,300 | 14,630 |
Deduction for qualified business income | 0 | 1,680 | 10,000 |
1B
Aishwarya's husband passed away in 2021. She needs to determine whether Jasmine, her 17-year-old stepdaughter, who is single, qualifies as her dependent in 2022. Jasmine is a resident but not a citizen of the United States. She lived in Aishwarya's home from June 15 through December 31, 2022. Aishwarya provided more than half of Jasmine's support for 2022.
Required:
- Is Aishwarya allowed to claim Jasmine as a dependent for 2022?
- Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 if Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $5,000 for the year?
- Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 if Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $2,500 for the year?
1C
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Lacy is divorced and the custodial parent of a three-year-old girl named Bailey. Lacy and Bailey live with Lacy's parents, who pay all the costs of maintaining the household (such as mortgage, property taxes, and food). Lacy pays for Bailey's clothing, entertainment, and health insurance costs. These costs comprised only a small part of the total costs of maintaining the household. Lacy does not qualify as her parents' dependent.
a.Determine the appropriate filing status for Lacy.
Multiple Choice
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Single
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Head of household
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Married filing separately
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Married filing jointly
1D
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Lacy is divorced and the custodial parent of a three-year-old girl named Bailey. Lacy and Bailey live with Lacy's parents, who pay all the costs of maintaining the household (such as mortgage, property taxes, and food). Lacy pays for Bailey's clothing, entertainment, and health insurance costs. These costs comprised only a small part of the total costs of maintaining the household. Lacy does not qualify as her parents' dependent.
b.What if Lacy lived in her own home and provided all the costs of maintaining the household?
Multiple Choice
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Single
-
Head of household
-
Married filing separately
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