Mason and his wife Madison have been married for five years. Jaxon, who is 18 years old and unrelated to Mason and Madison, has been living with Mason and Madison for the last two years. In May of year 1, Mason and Madison divorced. Mason and Jaxon stayed in the home and Madison moved out. During year 2, Mason provided all of Jaxon's support and Jaxon lived in the home for all of year 2. Jaxon did not earn any income during year 2. What is Mason's most favorable filing status for year 2?

A.

Single

B.

Married filing separately

C.

Surviving spouse

D.

Head of household

___

Jan is unmarried and has no children, but she provides all of the financial support for her mother, who lives in an apartment across town. Jan's mother qualifies as Jan's dependent. Which is the most advantageous filing status available to Jan?

A.

Single

B.

Head of household

C.

Qualifying individual

D.

Surviving single

____

Earl and Lawanda Jackson have been married for 15 years. They have no children. Ned, who is an old friend from high school, has been living with the Jacksons during the current year. Which of the following is a true statement regarding whether the Jacksons can claim a dependency exemption for Ned in the current year?

A.

If Ned moved into the Jackson's home in June and he lived there for the remainder of the year, he may qualify as the Jackson's qualifying relative.

B.

Assume that Ned originally moved into the Jackson's home two years ago and he has lived there ever since. If, this year, Ned earned $3,000 at a part time job and he received $5,000 in municipal bond interest, he may qualify as the Jackson's dependent as long as the Jacksons provided more than half his support.

C.

If Ned lived in the Jackson's home for the entire year, he will qualify as their dependent no matter who provided his support.

D.

If Ned is over 19 or he is not a full-time student, he cannot qualify as the Jackson's dependent.

___

Katy has one child, Dustin, who is 18 years old at the end of the year. Dustin lived at home for three months during the year before leaving home to work full-time in another city. During the year, Dustin earned $15,000. Anne provided more than half of Dustin's support for the year. Which of the following statements regarding whether Katy may claim Dustin as a dependent for the current year is accurate?

A.

Yes, Dustin is a qualifying child of Katy.

B.

Yes, Dustin fails the residence test for a qualifying child but he is considered a qualifying relative of Katy.

C.

No, Dustin fails the support test for a qualifying relative.

D.

No, Dustin fails the gross income test for a qualifying relative.

___

In year 1, the Bennetts' 25-year-old daughter, Jane, is a full-time student at an out-of-state university. In previous years, Jane has never worked and her parents have always been able to claim her as a dependent. In year 1, a kind neighbor offers to pay for all of Jane's educational and living expenses. Which of the following statements is most accurate regarding whether Jane's parents would be allowed to claim an exemption for Jane in year 1 assuming the neighbor pays for all of Jane's support?

A.

No, Jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.

B.

Yes, because she is a full-time student and does not provide more than half of her own support, Jane is considered her parent's qualifying child.

C.

No, Jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.

D.

Yes, because she is a student, her absence is considered as "temporary." Consequently she meets the residence test and is a considered a qualifying child of the Bennetts.

___

Charles, who is single, pays all of the costs of maintaining a home for himself and Damarcus. Charles and Damaracus have no family relationship but Damarcus lives with Charles for the entire year. Damarcus qualifies as a qualifying relative for Charles (Charles claims a dependency exemption for Damarcus on his tax return). Charles qualifies for head of household filing status. T or F