Tax Practice Exam

A329 Fall 2015

Professor Owen

Individual Taxation Sample M/C Questions w/ Solutions

1. Professor O is single and has two sons.  Her oldest son is 25 years old and graduated in December 2013.  He lived with his Mom for the first five months of 2014 while he studied and took his certification exams, then moved into an apartment.  He worked on commissions and made $ 7,000 in 2014.  Her younger son is 22 years old and graduated from college in late May 2014.  He lived on campus until graduation, then stayed with his Mom until he moved to Virginia to start his new job in August 2014.  He earned $4,000/month August – December, 2014.  What filing status and dependency exemptions can Professor O claim for 2014?

1. Single;  two dependency exemptions
2. Single; one dependency exemption
3. Single;  zero dependency exemptions
4. Head of Household; two dependency exemptions
5. Head of Household; one dependency exemption
6. Head of Household; zero dependency exemptions

1. In 2015 Professor O is STILL single and with her sons gone she now has extra space in her house.  She decided to let her nephew’s girlfriend, Jane, stay with her from January through July, 2015 for the Spring and Summer terms.  Jane is 20 years old and a full-time student at IU.  She has no income other than a scholarship that covers her tuition, books, and fees, and Professor O will provide most of her support.   What filing status and dependency exemptions can Professor O claim for 2015?

1. Single;  two dependency exemptions
2. Single; one dependency exemption
3. Single;  zero dependency exemptions
4. Head of Household; two dependency exemptions
5. Head of Household; one dependency exemption
6. Head of Household; zero dependency exemptions

1. Jack and Jill are married with one young child, JR.  Jill paid most of the costs of maintaining their home and supporting JR, who lived in the home all year.  Jack moved out in August and Jill has not been able to contact him.  What is Jill’s filing status for the current tax year?

        A.  Single

        B.  Head of Household

        C.  Abandoned Spouse

        D.  Surviving Spouse

        E.  Married Filing Jointly

        F.  Married Filing Separately

1. In Question 3 above, assume instead that Jack filed for divorce when he moved out in August, and the divorce was finalized in October.  The courts awarded custody of the child to Jack but the child continued to live with Jill for the rest of the year. What is Jill’s filing status for the current tax year?

A.  Single

B.  Head of Household

C.  Abandoned Spouse

D.  Surviving Spouse

E.  Married Filing Jointly

F.  Married Filing Separately

1. In Question 4 above, who is entitled to claim a dependency exemption for JR?

        A.  Jack

        B.  Jill

        C.  JR

        D.  Jack and Jill will split the dependency exemption

        E.  No one can claim the dependency exemption for JR