Tax Preparation Filing Status and Dependents 1 — Questions and Answers
Question 1: Which filing status gives the highest standard deduction for a single parent with a qualifying child?
- Single
- Head of Household (Correct answer)
- Married Filing Jointly
- Married Filing Separately
Correct answer: Head of Household
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?
- 17
- 18 (Correct answer)
- 19
- 24
Correct answer: 18
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?
- One spouse has large medical expenses (Correct answer)
- Both spouses have equal income
- They want to maximize the standard deduction
- They have no dependents
Correct answer: One spouse has large medical expenses
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?
- Relationship test
- Gross income test (Correct answer)
- Residency test
- Age test
Correct answer: Gross income test
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?
- Married Filing Jointly
- Married Filing Separately
- Single (Correct answer)
- Head of Household
Correct answer: Single
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.
Question 6: Which of the following is NOT a requirement for Qualifying Surviving Spouse filing status?
- Spouse died in a prior tax year
- Taxpayer has a qualifying dependent child
- Taxpayer has not remarried
- Taxpayer must have earned income (Correct answer)
Correct answer: Taxpayer must have earned income
Qualifying Surviving Spouse does not require the taxpayer to have earned income; it requires an unremarried widow/widower with a dependent child.
Tax Preparation Filing Status and Dependents 1
Which filing status gives the highest standard deduction for a single parent with a qualifying child?