1. Look at the Form 1040A you prepared for Rafael Ravela. What is the amount on Form 1040A, Line 27?

A. $ 8,178.
B. $ 2,728.
C. $ 9,728. 
D. $ 13,228.

2. Look at the Form 1040A you prepared for Rafael Ravela. What is the amount of refund on Form 1040A line 45A?

A. $ 2,054.
B. $ 2,404.
C. $ 3,103. 
D. $ 2,552.

3. Tyler is single and is 18 years old. He works part time and is going to school. His total income for 2008 was $8,000. Tyler lives with his parents. He qualifies as their dependent and they are claiming him as an exemption on their 2008 tax return. Since Tyler will file his own return, he may also take an exemption for himself.

True False

4. Ted and Sharon (husband and wife) are the sole support of their 27-year-old son Tom who lives with them. Tom was unable to work in 2008 because of a medical condition but received $3,500 from a charitable foundation for a speaking engagement. Ted and Sharon may claim Tom as a dependent on their 2008 federal income tax return.

True False

 5. There are five tests which must be met for you to claim an exemption for a dependent. Which of the following is NOT a requirement?

A. Relationship test.
B. Residency test.
C. Disability test.  
D. Special test for qualifying child of more than one person.

6. Mr. and Mrs. Rose are both over 65. Their adjusted gross income is $100,000. During the year their 35-year-old single son, Tom, lived with them while attending college and earned $4,000. Mr. Rose's mother, Ivy, lived with them until June 1 when she was placed in a nursing home for an indefinite period of time to receive medical care. Ivy received no income and was supported solely by Mr. and Mrs. Rose. Determine the number of exemptions Mr. and Mrs. Rose can claim on their 2008 joint return.

A. 2.
B. 3.
C. 4.  
D. 6.

7. Holly and Harp Oaks were divorced in 2007. The divorce decree was silent regarding the exemption for their 12-year-old daughter, June, in 2008. Holly has legal custody of her daughter and did not sign a statement releasing the exemption. Holly earned $8,000 and Frank earned $80,000. June has a paper route and earned $3,000. June lived with Harp 4 months of the year and with Holly 8 months. Who may claim the exemption for June in 2008?

A. June may, since she has gross income over $3,000 and files her own return.
B. Since June lived with both Holly and Harp during the year, they both may claim her as an exemption.
C. Holly may, since she has legal custody and physical custody for more than half the year.
D. Harp may, since he earned more than Holly and, therefore, is presumed to have provided more than 50% of June's support.

8. Thomas and Rebecca are the parents of four children, ages 10, 12, 15, and 22. Their 22-year-old child is a full-time student with income of $5,600. Thomas and Rebecca provided more than 50% of the the support for all their children. If they file a joint return, how many exemptions can they claim for the above family members?

A. 5.
B. 4.
C. 6.
D. 3.

9. In meeting the gross income test for claiming his father as a dependent, Doug considered the income received by his father. This income included gross rents of $4,000 (expenses were $2,000), municipal bond interest of $1,200, dividends of $1,400, and social security of $4,000. What is Doug's father's gross income for dependency test purposes?

A. $3,400.
B. $5,400.
C. $9,400.
D. $8,600.

10. Jill and John, married filing jointly, have provided more than 50% of the support for two minor children and Jill's mother. The children each had interest income of less than $700. Jill's mother received a taxable pension of $2,500, dividends of $1,500 and interest of $1,000. How many exemptions can the taxpayers claim, including themselves, on their 2008 tax return?

A. 3.
B. 5.
C. 4.
D. 2.

11. In meeting the "Gross Income Test" for claiming his father as a dependent, the taxpayer had to consider the income received by the father. This income included gross rents of $4,000 (expenses were $2,000), mutual fund municipal bond interest of $1,200, corporate bond interest of $1,000, dividends of $1,400, wages of $2,000 and social security of $4,000. What is the father's gross income for dependency test purposes?

A. $2,000.
B. $8,400.
C. $9,600.
D. $11,600.

12. Mary and Fred filed a joint tax return. They have a son Fred, Jr. and daughter Joan who are both teenagers and live at home. Fred Jr. has interest income of $400 and Joan has interest income of $600. Mary's widowed mother has lived with them for the entire year. Mary's mother receives a pension of $3,000, interest income of $2,000 and dividends of $1,000. Mary and Fred fully support Mary's mother with the exception of her clothing, the balance of her income she invests. How many exemptions can Mary and Fred claim on their joint tax return.

A. 2.
B. 3.
C. 4.
D. 5.

13. Don and Joyce have adjusted gross income of $85,000. Their two children Mary, age 14, and David, age 20 (completed his education in the previous year), lived with them all year. Mary had interest income of $300. David had interest income of $600 and wages of $6,500. the parents provided over 50% of the support of both children. How many exemptions can Don and Joyce claim?

A. 2.
B. 3.
C. 4.
D. 1.

14. To meet the dependency test of "Gross Income", the taxpayer had to consider the following income received by his mother who was 81 years of age: Social Security $3,600, stock dividends $900, rental income $1,200, rental expenses $200, and wages $600. The mother lived with the taxpayer the entire year. What is the correct gross income of the mother for this test?

A. $9,700.
B. $2,900.
C. $5,100.
D. $3,900.

15. John and Joanne are the sole support of the following individuals, all U.S. citizens, none of whom lives with them: None of these individuals file a joint return or have any gross income.

Jennie, John's mother.

Julie, Joanne's stepmother

Jonathan, father of John's first wife.

How many exemptions for dependents may John and Joanne claim on their joint return for 2008?

A. 3.
B. 2.
C. 1.
D. 0.

16.  John is the sole support of his mother. To claim her as a dependent on his Form 1040A for 2008, she must be a resident of which of the following countries for some part of calendar year 2008?

A. United States.
B. Mexico.
C. Canada.
D. Any of the above.

17. Heather is single and lives in an apartment for which she pays all the expenses. An unrelated 6-year-old child has been living with her since May. She is raising the child as her own and receives no financial assistance. The child was not placed by an authorized adoption agency but Heather has filed for adoption although is not yet final. Heather can claim the child as her dependent on her return.

True False

18. All the following qualify as a dependent EXCEPT:

A. Your deceased wife's stepmother who lived with you for 7 months during the tax year. She had no income and filed no tax return. You provided more than half of her support.
B. Your son who filed a joint return with his wife to receive a refund of all his withholding. No tax liability would have been due even if they had filed separate returns. All other exemption tests are met.
C. Your 23 year-old daughter who is not a student and earned $3,000. She lived with you all year and you provided more than half of her total support.
D. Your 17 year-old niece who is a resident of Canada but lived with you for 10 months. She earned $500 during the summer and you provided more than half of her total support.

19. Roy met all five tests to claim an exemption for his sister who is single. However, he did not claim an exemption for her. Roy's sister can take an exemption for herself on her own return.

True False

20. All of the following are correct EXCEPT:

A. A brother-in-law must live with the taxpayer the entire year to be claimed as a dependent even if the other tests are met.
B. A son age 21 was a full-time student who earned $3,500 from his part time job. The money was used to buy a car. Even though he earned $3,500, his parents can claim him as a dependent if the other exemption tests were met.
C. For each person claimed as a dependent, the social security number, adoption taxpayer identification number, or individual taxpayer identification number must be listed.
D. If a married person files a separate return he/she can take an exemption fro his/her spouse if the spouse had no gross income and was not the dependent of another taxpayer.