Tax Preparation Filing Status and Dependents

Question 1

Which filing status gives the highest standard deduction for a single parent with a qualifying child?

Accepted Answer

Head of Household

Answer

Head of Household status provides a larger standard deduction than Single and requires a qualifying dependent.

Question 2

What is the maximum age for a qualifying child dependent who is not a full-time student?

Accepted Answer

18

Answer

A qualifying child must be under age 19 at the end of the tax year unless they are a full-time student.

Question 3

A married couple can file as Married Filing Separately to reduce their total tax liability in which common scenario?

Accepted Answer

One spouse has large medical expenses

Answer

Filing separately can benefit a couple when one spouse has significant itemizable expenses like medical costs that must exceed a percentage of AGI.

Question 4

Which test must a qualifying relative pass that a qualifying child does NOT need to pass?

Accepted Answer

Gross income test

Answer

A qualifying relative must have gross income below the exemption threshold, a rule that does not apply to qualifying children.

Question 5

A taxpayer's divorce was finalized on December 31. What is their filing status for that tax year?

Accepted Answer

Single

Answer

Filing status is determined by marital status on the last day of the tax year; a divorce finalized on December 31 means the taxpayer files as Single.

Tax Preparation Practice Test