Tax Preparation Filing Status and Dependents 3

Question 1

A college student who lives at home and earns $4,000 in wages. Can the parents claim the student as a dependent?

Accepted Answer

Yes, if the student is under 24 and a full-time student

Answer

A full-time student under age 24 can be claimed as a qualifying child regardless of their income level.

Question 2

Which filing status has the lowest tax rates in the US tax brackets?

Accepted Answer

Married Filing Jointly

Answer

Married Filing Jointly (and Qualifying Surviving Spouse) has the widest tax brackets, resulting in the lowest tax rates at most income levels.

Question 3

A taxpayer is claimed as a dependent by their parents. Can they still file their own tax return?

Accepted Answer

Yes, and they can also claim the standard deduction for dependents

Answer

Dependents can file their own return but must use the dependent standard deduction rules (the greater of earned income + $400 or $1,300 for 2024).

Question 4

What is the residency test requirement for a qualifying child?

Accepted Answer

Must live with the taxpayer for more than half the year

Answer

A qualifying child must have lived with the taxpayer for more than half of the tax year to pass the residency test.

Question 5

A taxpayer supports their sibling who lives with them and earns $5,000. Which test prevents claiming the sibling as a qualifying relative in 2024?

Accepted Answer

Gross income test

Answer

For 2024, a qualifying relative's gross income must be less than $5,050; a sibling earning exactly $5,000 may still qualify, but $5,050 or more would fail.

Tax Preparation Practice Test

Tax Preparation Practice Test

Tax Preparation Filing Status and Dependents 3