Tax Preparation Filing Status and Dependents 2

Question 1

A taxpayer provides more than half the support for their elderly parent who lives in a different home. Which test may they satisfy to claim the parent?

Accepted Answer

Qualifying relative test

Answer

An elderly parent who does not live with the taxpayer can be claimed as a qualifying relative if support and income tests are met.

Question 2

Two divorced parents share custody. Who is generally entitled to claim the child as a dependent?

Accepted Answer

The custodial parent

Answer

The custodial parent — the one with whom the child lives the greater number of nights — generally claims the dependency exemption.

Question 3

What form does a custodial parent use to release the dependency exemption to the noncustodial parent?

Accepted Answer

Form 8332

Answer

Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is used to transfer the dependency claim.

Question 4

Which statement about the Married Filing Jointly status is correct?

Accepted Answer

Both spouses are jointly and severally liable for the tax

Answer

Married Filing Jointly creates joint and several liability, meaning each spouse is fully responsible for the total tax owed.

Question 5

A taxpayer's spouse died in 2024. They have a dependent child. What is the most beneficial filing status for tax years 2025 and 2026?

Accepted Answer

Qualifying Surviving Spouse

Answer

Qualifying Surviving Spouse status allows use of Married Filing Jointly tax rates for two years after the spouse's death when there is a qualifying dependent.

Tax Preparation Practice Test

Tax Preparation Practice Test

Tax Preparation Filing Status and Dependents 2