Question

1) During 2019, Mariam had the following transactions:

Salary                                                                                     $60,000

Interest income on City of Albuquerque bonds               1,000

Commission Income received                                             5,000

Cash dividends from IBM stock                                          2,000

Mariam’s AGI for 2019 is:

	A.	$65,000.
	B.	$60,000.
	C.	some other amount.
	D.	$68,000.
	E.	$67,000.

2) Which of the following is inaccurate for the qualifying relative rule:

	A.	A dependent does not need to reside with the taxpayer.
	B.	A dependent does not need to be relative of the taxpayer.
	C.	A dependent must be a citizen of USA only.
	D.	The gross income test is applicable and must be satisfied.
	E.	A dependent does not need to satisfy an age requirement.

3) Fatima is married to Ahmed, who abandoned her in 2019. She has not seen or communicated with him since June of that year.

She maintains a household in which she and her three dependent children live. Which of the following statements about Fatima’s

filing status in 2019 is correct?

	A.	Fatima can file as a head of household.
	B.	Fatima can file as a surviving spouse.
	C.	None of the other four choices is true.
	D.	Fatima can file a joint return with Herb.
	E.	Fatima can use the rates for single taxpayers.

Answer 1

Sol :

1)

Computation of Agjusted Gross Income

Salary 60,000

Interest Income 1,000

Commission Income    5,000

Dividend Income 2,000

Total 68,000

The Correct Option is D)68,000

2)

Dependent meaning

• Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
• Residence: Must have the same residence for more than half the year.
• Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled

Dependent need to satisfy the age requirement.

So,the inacurate statement is no need to satisfy the age requirement

The Correct Option is 'E'

3)

Abandoned spouse rules allow a taxpayer who was abandoned by her spouse to file as head of household.

The correct Option is A)Fatima can file as head of household