8workshop3

Couldn't confirm presence of Flash 8 or higher because JavaScript was disabled.Get FlashI really do have Flash installed.ul{margin-top:0px;margin-bottom:0px;list-style-type:none;padding-left:20px;}1. Look at the Form 1040A you prepared for Linda Wuertz. What is the amount on Form 1040A, Line 27?

[ ] a. A. $ 25,920.

[ ] b. B. $ 32,920.

[ ] c. C. $ 35,500.

[ ] d. D. $ 32,000.

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

[ ] a. A. $5,218.

[ ] b. B. $6,268.

[ ] c. C. $4,359.

[ ] d. D. $5,181.

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.

[ ] a. True

[ ] b. 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.

[ ] a. True

[ ] b. 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. A. Relationship test.

[ ] b. B. Residency test.

[ ] c. C. Disability test.

[ ] d. 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. A. 2.

[ ] b. B. 3.

[ ] c. C. 4.

[ ] d. 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. A. June may, since she has gross income over $3,000 and files her own return.

[ ] b. B. Since June lived with both Holly and Harp during the year, they both may claim her as an exemption.

[ ] c. C. Holly may, since she has legal custody and physical custody for more than half the year.

[ ] d. 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. A. 5.

[ ] b. B. 4.

[ ] c. C. 6.

[ ] d. 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. A. $3,400.

[ ] b. B. $5,400.

[ ] c. C. $9,400.

[ ] d. 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. A. 3.

[ ] b. B. 5.

[ ] c. C. 4.

[ ] d. 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. A. $2,000.

[ ] b. B. $8,400.

[ ] c. C. $9,600.

[ ] d. 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. A. 2.

[ ] b. B. 3.

[ ] c. C. 4.

[ ] d. 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. A. 2.

[ ] b. B. 3.

[ ] c. C. 4.

[ ] d. 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. A. $9,700.

[ ] b. B. $2,900.

[ ] c. C. $5,100.

[ ] d. 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. A. 3.

[ ] b. B. 2.

[ ] c. C. 1.

[ ] d. D. 0.