Which of the following is not a deduction for AGI on an individual taxpayer’s tax return?

Charitable contributions

Ann’s husband died last year. Ann maintains a household where she and her 8-year-old daughter reside for the tax year. On her tax return, she properly claims her daughter as a dependent. For the current year, Ann should file her tax return as:

Qualifying widow(er)

Carol is 20 years old and single. Her parents properly claim her as a dependent on their joint tax return. During 2013, Carol had the following income and expense items:

• Wages from a part-time summer job $3,000
• Interest income from her own savings account 2,500
• State and local income taxes paid 800
• State and local sales tax paid 200

Carol’s 2013 taxable income is:

Wages $3,000

Int. 2,500

Income 5,500

Std. ded. (3,350)

Taxable $2,150

The minimum percentage of support that a member of a multiple support group must provide to claim a dependency exemption for the supported person is more than:

10%

Dorsey and Thelma Packard (ages 42 and 45) file a joint return. They claim Dorsey’s blind mother (age 67) as a dependent. The Packards’ 2013 standard deduction is:

$12,200

• Basic standard deduction (MFJ) = $12,200
• No deduction for Dorsey’s blind mother

Education tax credits are reported on:

Form 8863

The full child tax credit is available to unmarried taxpayers whose AGI does not exceed:

$75,000

A 25-year-old files Form 1040EZ and indicates that another taxpayer can claim him as a dependent. This taxpayer may not:

Claim an earned income credit.

Claim an exemption for him or himself.

Which of the following is a refundable credit?

The earned income credit

Is Head of Household the most advantageous filing system Teresa can use?

No, filing as a qualifying widow(er) is the more favorable filing status.

Because Zach is disabled and meets the other tests, Teresa can claim him as a qualifying child for the earned income credit.

True

What is Teresa’s total federal income tax withholding?

$2,500

+ 150

+ 260

$2,910

What is the credit for child and dependent care expenses on Form 2441, line 11?

• Amount paid is $2,800
• Income is $41,800

$2,800

x .21

$588

Teresa has three qualifying children for the child tax credit.

False. Because Zack is over the age of 17, Teresa has only two qualifying children.

Teresa must pay a 10% additional tax on the distribution from her 401(k) because she is under 59 ½ years old and does not qualify for an exemption.

True