Filing Status

Question 1

When is marital status determined?

Answer 1

-On last day of tax year or last day taxpayer is alive

Question 2

How may an abandoned spouse file?

Answer 2

• As HOH as long as
  1) Taxpayer’s spouse hasn’t lived in home for last 6 months of calendar year
  2) Taxpayers provided more than half the cost of maintaining a home for self and dependent child

Question 3

What is required of taxpayers filing as MFS?

Answer 3

• Spouses must divide income and expenses according to ownership
• If one spouse itemizes the other must as well

Question 4

What are the provisions concerning surviving spouses (qualifying widowers)?

Answer 4

• May use MFJ rates for two years after taxpayer’s spouse has died under Qualifying Widower with Dependent Child filing status
• Usually eligible to file as MFJ in year spouse dies

Question 5

What are the requirements to file as HOH?

Answer 5

• Must provide more than half the cost of maintaining the household for a qualifying child or qualifying relative (non relative in home doesn’t qualify) w/ the following exceptions
  1) Qualifying child is an unmarried child
  2) Qualifying relative is a parent, parent need not live w taxpayer but taxpayer must pay more than 50% of parent’s home

Question 6

What is the standard deduction?

Answer 6

-An automatic deduction that reduces the taxable income of most taxpayers

Question 7

Can taxpayer receive two additions to standard deduction?

Answer 7

-Yes if over 65 and blind

Question 8

What are dependents entitled to?

Answer 8

• A “mini” standard deduction and no personal exemption
• Dependents can earn a regular standard deduction by earning income. Standard deduction is greater of mini standard deduction or earned income + $350 limited to regular standard deduction

Question 9

What are the provisions for the kiddie tax?

Answer 9

• Includes all children under 18 or between 18 and 23 who are full time students if earned income doesn’t exceed 50% of total support for the year
• Taxable income for the child is divided into net unearned income and other income
• Net unearned income taxed at parent’s rate while other income taxed a child’s rate
• Net unearned income computed by reducing unearned income by $2,100 if taxpayer doesn’t itemize or $1,050 plus itemized deductions allocated to unearned income