Federal Income Tax Chapter 2.

Federal Income Tax Chapter 2

© Copyright 2013 by M. Ray Gregg. All rights reserved.
Filing Status For each of the following situations, can Hank and Wynona file a joint return for 20x1? Explain. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Filing Status Hank and Wynona married on December 20, 20x1, after a whirlwind courtship. On December 28, 20x1, following a violent argument, Wynona packed off home to mother, vowing never to return. No legal action was taken during 20x1. Yes. Married on last day of year. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Not considered divorced until final.
Filing Status Hank and Wynona, after years of marriage, were separated under an interlocutory (not final) decree of divorce on December 30, 20x1. Yes. Not considered divorced until final. © Copyright 2013 by M. Ray Gregg. All rights reserved.

but they could if they claimed her WW income.
Filing Status Hank, while on temporary assignment in England for a large corporation, married Wynona, a citizen of Great Britain. They were still in London at the end of 20x1, but they return to the United States in January 20x2. They made no election for 20x1 to include Wynona’s worldwide income on a U.S. tax return. No, but they could if they claimed her WW income. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Filing Status Hank and Wynona were divorced on January 14, 20x1. They have no children or other dependents, and they did not remarry during the year. Hank = Single Wynona = Single © Copyright 2013 by M. Ray Gregg. All rights reserved.

Filing Status Hank and Wynona separated (not by decree) in May 20x1. They agreed Hank would claim the children as dependents. Wynona provided a home for them. Hank and Wynona will not file as married filing jointly. Hank = Married Filing Separate Wynona = Head of Household © Copyright 2013 by M. Ray Gregg. All rights reserved.

Filing Status Hank and Wynona separated (not by decree) in August 20x1. Wynona provided a home and support for the children. They will not file as married filing jointly. Hank = Married Filing Separate Wynona = Married Filing Separate © Copyright 2013 by M. Ray Gregg. All rights reserved.

Head of Household and Surviving Spouse
Problem 2 – 44 Allen? Yes Beth? No Aunt must live with TP Cindy? Consider some other situations © Copyright 2013 by M. Ray Gregg. All rights reserved.

What if full-time student?
2011 2012 2013 2014 W C W C Filing Status? MFJ S # exm? 2 1 Std Ded? $12,200 $6,100 Rate Sch? Y-1 X © Copyright 2013 by M. Ray Gregg. All rights reserved.

What if full-time student?
2011 2012 2013 2014 W C W C Filing Status? MFJ SS S # exm? 3 2 1 Std Ded? $12,200 $6,100 Rate Sch? Y-1 X © Copyright 2013 by M. Ray Gregg. All rights reserved.

Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Personal Dependents (after ’04) REQUIREMENTS FOR ALL qual ID citizen joint return claim no other dep CHILDREN OTHERS relationship relationship * age gross income abode (>1/2) * (entire year) support support © Copyright 2013 by M. Ray Gregg. All rights reserved.

Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met. A. Ann supports her mother, who lives in her own apartment. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met. B. Barry supports his aunt and her husband, who live in their own apartment. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met. C. Charles provided $3,000 of support for his sister. She received $6,000 of social security benefits which she used to pay some of her own expenses. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met. D. Dave, who is a dependent of his parents, files a return and reports his earnings from a summer job. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Determine the number of personal and dependency exemptions in each of the following situations. Assume any condition for a dependency exemption not mentioned is met. E. Ed and his two brothers help support their mother. Each contributed $3,000 toward her support. She received a taxable pension of $4,000 and used the money to pay her own expenses. © Copyright 2013 by M. Ray Gregg. All rights reserved.

Federal Income Tax Chapter 2.

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Federal Income Tax Chapter 2.

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