Question

Gross Income Test:
A dependent’s gross income must be less than $(_________), the (Exemption Amount or Standard Deduction) . Gross income is determined by the income that is (Both Taxable and Nontaxable, Non Taxable, or Taxable.

Answer 1

Gross Income Test:

1. It is a test where the dependent is exempted to a certain limit of his income and if more than that he is not exempted to tax filings.

2. It is one of the tests where a child(Dependent in this case) must qualify for in order to claim exemption.

3. The dependent should be younger than the payer of the tax or 19 years under age or a full time student of 24 years under age to qualify.

4. Gross income is all the income you get before deducting taxes or say the deductions and exemptions to be claimed under the relevant tax laws. It is the total of say earned income as well as the unearned income

5. If a dependent earns more than $4050 gross income he is not qualified as a dependent unless he a child and satisfy all the above mentioned criteria.