Accounting -Jennifer supports Ben, her cousin, who lived with her all year

| January 30, 2017

Question
QUESTION 1

Jennifer supports Ben, her cousin, who lived with her all year. Jennifer also supports two other individuals who do not live with her:
 JoAnn who is Jennifer’s mother, and Morris who is Ben’s brother
How many (total) personal and dependency exemptions may Jennifer claim? (Assume all other requirements are met.)



1

2

3

4

1

2

3

QUESTION 2

Ben, age 23, is a full-time student and single. Ben is supported primarily by his parents. What is the most income that Ben can earn this year without disqualifying Ben as a dependent?


$3,200

$5,000

No limit exists.

$3,199

QUESTION 3

One requirement for claiming a Qualifying Child is that the taxpayer provide more than 50% of the child’s support.


 



True

False

QUESTION 4

As to the requirements for claiming dependents, which of the following istrue?



Dependents may earn only $1,000.


Alldependents must be under the age of 24.


Children under the age of 14 with unearned income over the personal exemption amount may not be claimed as a dependent.


A dependent may be married and file a joint tax return under certain circumstances.


QUESTION 5

Anna is supported entirely by her four children Julie, John, Jane and Joseph who provide her support in the following percentages:
 Julie 5%, John 10%, Jane 40%, Joseph 45%
Assuming a multiple support declaration exists, which of the children may claim Anna as a dependent?



Any one of them

John, Jane or Joseph

Jane or Joseph

Joseph only

None of them

5 points (Extra Credit)

QUESTION 6

Lily, who is divorced, maintains a home in which she and her 15-year-old daughter live. Lily provides the majority of the support for her daughter and for a son, age 23, who is enrolled full-time at the university and lives in the dorm. The son also works in the campus bookstore and earns spending money of $4,001. How many personal and dependency exemptions may Lily claim?


1

2

3

4

QUESTION 7

Individuals who die before the end of the year cannot be claimed as dependents.




True 




 False

QUESTION 8

Generally, in the case of a divorced couple, the parent who has physical custody of a child for the greater part of the year is entitled to the Qualifying Child dependency exemption.



True


False 



QUESTION 9

Which of the following is not considered support for the Qualifying Person support test?


Clothing

Transportation

Portion of home expenses


Value of services rendered by the taxpayer for the dependent

QUESTION 10

When determining if a Qualifying Person exemption is available, there is an exception to the support test in the case of multiple support declarations.



True


False 



QUESTION 11

Mohamed’s father is retired and receives $9,000 per year in social security benefits. Monhamed’s father saves $2,000 of the benefits and spends the remaining $7,000 for his support. How much support must Mohammed provide for his father to meet the qualifying person support requirement?


$ 9,000

$ 9,001

$ 7,000

$ 7,001

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