1. The IRS requires that tax preparers officially determine that a taxpayer who claims Head of Household (HOH) status and file an eligibility certification, Form 8867, with the tax return.
   1. (3 points) List the requirements for a taxpayer to be eligible to file as Head of Household.

2. (3 points) Explain why IRS is so concerned with Head of Household filing status as opposed to all of the other filing statuses

2. (10 points) For each of the following taxpayers,

(1) determine the appropriate filing status, and

(2) determine whether the taxpayer is required to file a federal income tax return.

a. Jennifer is 19 years old, single, and a college student. She does not live at home and provides most of her own support. She earned $18,000 last year.

(1)

(2)

b. Rick and Lori Grimes are married and lived together all year. Their gross income was $18,000 last year.

(1)

(2)

c. Carl Grimes is the son of Rick and Lori Grimes. Carl qualified as a dependent of his parents. Carl earned $6,000 from a part-time job.

(1)

(2)

d. Marty Byrde is married and has two dependent children. Marty made $300,000 by illegally laundering money for a cartel last year.

(1)

(2)

e. Frank Martin is a highly skilled driver. His spouse, Sue, died tragically last year when the neighbors pet llama tripped on wet pavement, knocking Sue into an abandoned well. Frank is raising their 2-year-old daughter alone. Frank made $100,000 last year.

(1)

(2)

3. (3 points) To determine whether someone qualifies as a dependent for tax purposes, there are several tests. Explain the Joint Return Test.

4. (3 points) There are eleven total tests that are used for determining whether a dependent is a qualifying child or a qualifying relative. Some of the tests apply to qualifying child and others apply to qualifying relative. There are two Support tests. Explain the 2 support tests and how they work.

5. (3 points) Explain the difference between the standard deduction and itemized deductions.

6. (3 points) Josiah is 22 years old and a full-time college student. His parents provide most of his support, so they claimed him as a dependent on their tax return. Josiah earned $5,000 from a part-time job during the summer. The employer withheld $250 in federal income tax. Josiah is trying to determine whether he can file a tax return for a refund. What is the amount of standard deduction that Josiah must use?

7. (3 points) Tonya is age 67 and is filing as Single. She cannot be claimed as a dependent by anyone. What is the amount of her standard deduction?