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NEED HELP ASAP Question 5 A qualifying child cannot include: a. A married son who files a joint return but is not required to file.

NEED HELP ASAP

Question 5

A qualifying child cannot include:

a.

A married son who files a joint return but is not required to file.

b.

A daughter who is away at college.

c.

A brother who is 28 years of age and disabled.

d.

A grandmother.

QUESTION 6

Evan and Eileen Carter are husband and wife and file a joint return for 2019. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 30), who is a full-time medical student. Pamela receives a $5,000 scholarship covering her tuition at college. Evan and Eileen furnish all of the support of Belinda (Evans grandmother), who is age 80 and lives in a nursing home. They also support Peggy (age 66), who is a friend of the family and lives with them the entire year. Assuming all other dependency tests not mentioned are met, how many dependents may the Carters claim?

a.

None

b.

One

c.

Two

d.

Three

QUESTION 7

Morris is a single individual who has total tentative itemized deductions in 2018 of $6,300, which includes $2,000 for state income taxes. After filing his 2018 state income tax return on April 15, 2019 he receives a refund of $275.

a.

Morris must include $275 as income on his 2019 federal income tax return.

b.

Morris must amend his 2018 federal tax return to reflect state income taxes of $1,725 ($2,000 - $275).

c.

If Morris itemizes his tax return in 2019 he must reduce his state tax deduction by $275.

d.

Morris must include $200 as income on his 2019 federal income tax return.

e.

Morris excludes from his 2019 income the $275 state income tax refund received.

QUESTION 8

Wayne, a single taxpayer, purchases a new home valued at $725,000, in 2018, borrowing $625,000 from Century National Bank. He also pays $7,250 in points and $4,500 in loan origination fees. During 2018 he pays interest of $71,000 on the loan. He also pays $32,000 in real estate taxes during 2018. Wayne pays state income taxes of $25,000.

What is Wayne's allowable interest deduction on Schedule A in 2018?

a.

$ - 0 -

b.

$ 7,250

c.

$71,000

d.

$78,250

e.

$82,750

QUESTION 9

Wayne, a single taxpayer, purchases a new home valued at $725,000, in 2018, borrowing $625,000 from Century National Bank. He also pays $7,250 in points and $4,500 in loan origination fees. During 2018 he pays interest of $71,000 on the loan. He also pays $32,000 in real estate taxes during 2018. Wayne pays state income taxes of $25,000.

What is Wayne's allowable taxes deduction on Schedule A in 2018?

a.

$ - 0 -

b.

$ 10,000

c.

$ 25,000

d.

$ 32,000

e.

$ 57,000

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