Practice questions for tomorrow

1) John is a 20-year-old fulltime college student who can be claimed as a dependent on his parent's return. He earned $5,000 in a summer job last summer. Can John claim himself as a personal exemption on his own tax return?


2) True or False? Jennifer Rawls, an eighteen-year-old single mother who can be claimed as a dependent by her parents, can claim her infant son as a dependent on her own tax return.


3) Bob is 22 and a full-time student for the entire year. During the tax year, he lived at home with his parents for 6 months, and lived in the dorm for the remaining six months. During the tax year, he worked part-time and earned $6,000, but that income did not amount to half of his total support.

3a) Can Bob be claimed as a dependent by his parents?

3b) If Bob is a dependent, is he a "qualifying child" dependent or a "qualifying relative" dependent?

3c) Which type of dependent ("qualifying child" or "qualifying relative") could give his parents greater tax benefits?


4) Suppose a wealthy grandmother who lives on the other side of New York State from Bob's home takes an interest in Bob and decides to pay for all his support. Bob still lives with his parents, but they no longer pay anything for his support, since his grandmother contributes enough to cover his share of the rent, utilities, food, etc. as well as his college education, health care, etc. Who can claim Bob's exemption on their return now:

A) his parents
B) his wealthy grandmother across the state
C) Bob


5) Bob decides to drop out of college, and quit his job, and write the Great American novel, since his grandmother is providing such generous support. He is still 22 and living with his parents.

5a) Who can claim him now?

A) his parents
B) his wealthy grandmother across the state
C) Bob

5b) What kind of dependent is he now

A) Qualifying Child Dependent
B) Qualifying Relative Dependent
C) Not a dependent

6) Same facts as in #5, but assume that John earns a $4,000 advance for his novel. He puts all the money in his bank savings account and plans to save it for several years for some long-term goal. What kind of dependent is he now.

A) Qualifying Child Dependent
B) Qualifying Relative Dependent
C) Not a dependent

7) Same facts as in #6, but assume the publisher's advance he earns is only $2,000.

A) Qualifying Child Dependent
B) Qualifying Relative Dependent
C) Not a dependent

6 more tough dependent questions:

http://www.irs.gov/app/vita/content/0102/0102_03_095.html