1. Federal Income Tax Chapter 2

2. © Copyright 2011 by M. Ray Gregg. All rights reserved. 2 Filing Status For each of the following situations, can Hank and Wynona file a joint return for 20x1? Explain.

3. © Copyright 2011 by M. Ray Gregg. All rights reserved. 3 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.

4. © Copyright 2011 by M. Ray Gregg. All rights reserved. 4 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.

5. © Copyright 2011 by M. Ray Gregg. All rights reserved. 5 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.

6. © Copyright 2011 by M. Ray Gregg. All rights reserved. 6 Filing Status Hank died on January 2, 20x1, after years of marriage to Wynona. Wynona did not remarry. Yes.

7. © Copyright 2011 by M. Ray Gregg. All rights reserved. 7 Filing Status For each of the following situations, a) state Hank’s and b) state Wynona’s filing status for 20x1?

8. © Copyright 2011 by M. Ray Gregg. All rights reserved. 8 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

9. © Copyright 2011 by M. Ray Gregg. All rights reserved. 9 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

10. © Copyright 2011 by M. Ray Gregg. All rights reserved. 10 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

11. © Copyright 2011 by M. Ray Gregg. All rights reserved. 11 Head of Household and Surviving Spouse Problem 2 – 44 –Allen? Yes –Beth? No Aunt must live with TP –Cindy? Consider some other situations

12. © Copyright 2011 by M. Ray Gregg. All rights reserved. 12 X1 H W Filing Status? # exm? Std Ded? Rate Sch? Situation 1

13. © Copyright 2011 by M. Ray Gregg. All rights reserved. 13 X1 H W C (15) Filing Status? # exm? Std Ded? Rate Sch? Situation 1

14. © Copyright 2011 by M. Ray Gregg. All rights reserved. 14 X1 H W C (15) Filing Status? MFJ # exm? Std Ded? Rate Sch? Situation 1

15. © Copyright 2011 by M. Ray Gregg. All rights reserved. 15 X1 H W C (15) Filing Status? MFJ # exm? 3 Std Ded? Rate Sch? Situation 1

16. © Copyright 2011 by M. Ray Gregg. All rights reserved. 16 X1 H W C (15) Filing Status? MFJ # exm? 3 Std Ded? $11,600 Rate Sch? Situation 1

17. © Copyright 2011 by M. Ray Gregg. All rights reserved. 17 X1 H W C (15) Filing Status? MFJ # exm? 3 Std Ded? $11,600 Rate Sch? Y-1 Situation 1

18. © Copyright 2011 by M. Ray Gregg. All rights reserved. 18 X1X2 H W C (15) H W C Filing Status? MFJ # exm? 3 Std Ded? $11,600 Rate Sch? Y-1 Situation 2

19. © Copyright 2011 by M. Ray Gregg. All rights reserved. 19 X1X2 H W C (15) H W C Filing Status? MFJ # exm? 3 Std Ded? $11,600 Rate Sch? Y-1 Situation 2

20. © Copyright 2011 by M. Ray Gregg. All rights reserved. 20 X1X2 H W C (15) H W C Filing Status? MFJ # exm? 33 Std Ded? $11,600 Rate Sch? Y-1 Situation 2

21. © Copyright 2011 by M. Ray Gregg. All rights reserved. 21 X1X2 H W C (15) H W C Filing Status? MFJ # exm? 33 Std Ded? $11,600 Rate Sch? Y-1 Situation 2

22. © Copyright 2011 by M. Ray Gregg. All rights reserved. 22 X1X2 H W C (15) H W C Filing Status? MFJ # exm? 33 Std Ded? $11,600 Rate Sch? Y-1 Situation 2

23. © Copyright 2011 by M. Ray Gregg. All rights reserved. 23 X1X2X3 H W C (15) H W C W C Filing Status? MFJ # exm? 33 Std Ded? $11,600 Rate Sch? Y-1 Situation 3

24. © Copyright 2011 by M. Ray Gregg. All rights reserved. 24 X1X2X3 H W C (15) H W C W C Filing Status? MFJ SS # exm? 33 Std Ded? $11,600 Rate Sch? Y-1 Situation 3

25. © Copyright 2011 by M. Ray Gregg. All rights reserved. 25 X1X2X3 H W C (15) H W C W C Filing Status? MFJ SS # exm? 332 Std Ded? $11,600 Rate Sch? Y-1 Situation 3

26. © Copyright 2011 by M. Ray Gregg. All rights reserved. 26 X1X2X3 H W C (15) H W C W C Filing Status? MFJ SS # exm? 332 Std Ded? $11,600 Rate Sch? Y-1 Situation 3

27. © Copyright 2011 by M. Ray Gregg. All rights reserved. 27 X1X2X3 H W C (15) H W C W C Filing Status? MFJ SS # exm? 332 Std Ded? $11,600 Rate Sch? Y-1 Situation 3

28. © Copyright 2011 by M. Ray Gregg. All rights reserved. 28 X1X2X3X4 H W C (15) H W C W C W C Filing Status? MFJ SS # exm? 332 Std Ded? $11,600 Rate Sch? Y-1 Situation 4

29. © Copyright 2011 by M. Ray Gregg. All rights reserved. 29 X1X2X3X4 H W C (15) H W C W C W C Filing Status? MFJ SS # exm? 332 Std Ded? $11,600 Rate Sch? Y-1 Situation 4

30. © Copyright 2011 by M. Ray Gregg. All rights reserved. 30 X1X2X3X4 H W C (15) H W C W C W C Filing Status? MFJ SS # exm? 3322 Std Ded? $11,600 Rate Sch? Y-1 Situation 4

31. © Copyright 2011 by M. Ray Gregg. All rights reserved. 31 X1X2X3X4 H W C (15) H W C W C W C Filing Status? MFJ SS # exm? 3322 Std Ded? $11,600 Rate Sch? Y-1 Situation 4

32. © Copyright 2011 by M. Ray Gregg. All rights reserved. 32 X1X2X3X4 H W C (15) H W C W C W C Filing Status? MFJ SS # exm? 3322 Std Ded? $11,600 Rate Sch? Y-1 Situation 4

33. © Copyright 2011 by M. Ray Gregg. All rights reserved. 33 X1X2X3X4X5 H W C (15) H W C W C W C W C Filing Status? MFJ SS # exm? 3322 Std Ded? $11,600 Rate Sch? Y-1 Situation 5

34. © Copyright 2011 by M. Ray Gregg. All rights reserved. 34 X1X2X3X4X5 H W C (15) H W C W C W C W C more assmptns? Filing Status? MFJ SS # exm? 3322 Std Ded? $11,600 Rate Sch? Y-1 Situation 5

35. © Copyright 2011 by M. Ray Gregg. All rights reserved. 35 X1X2X3X4X5 H W C (15) H W C W C W C W C Filing Status? MFJ SS HH # exm? 3322 Std Ded? $11,600 Rate Sch? Y-1 Situation 5

36. © Copyright 2011 by M. Ray Gregg. All rights reserved. 36 X1X2X3X4X5 H W C (15) H W C W C W C W C Filing Status? MFJ SS HH # exm? 33222 Std Ded? $11,600 Rate Sch? Y-1 Situation 5

37. © Copyright 2011 by M. Ray Gregg. All rights reserved. 37 X1X2X3X4X5 H W C (15) H W C W C W C W C Filing Status? MFJ SS HH # exm? 33222 Std Ded? $11,600 $8,500 Rate Sch? Y-1 Situation 5

38. © Copyright 2011 by M. Ray Gregg. All rights reserved. 38 X1X2X3X4X5 H W C (15) H W C W C W C W C Filing Status? MFJ SS HH # exm? 33222 Std Ded? $11,600 $8,500 Rate Sch? Y-1 Z Situation 5

39. © Copyright 2011 by M. Ray Gregg. All rights reserved. 39 X1X2X3X4X5x11 H W C (15) H W C W C W C W C W C Filing Status? MFJ SS HH # exm? 33222 Std Ded? $11,600 $8,500 Rate Sch? Y-1 Z Situation 6

40. © Copyright 2011 by M. Ray Gregg. All rights reserved. 40 X1X2X3X4X5x11 H W C (15) H W C W C W C W C W Filing Status? MFJ SS HH # exm? 33222 Std Ded? $11,600 $8,500 Rate Sch? Y-1 Z Situation 6

41. © Copyright 2011 by M. Ray Gregg. All rights reserved. 41 X1X2X3X4X5x11 H W C (15) H W C W C W C W C W Filing Status? MFJ SS HHS # exm? 33222 Std Ded? $11,600 $8,500 Rate Sch? Y-1 Z Situation 6

42. © Copyright 2011 by M. Ray Gregg. All rights reserved. 42 X1X2X3X4X5x11 H W C (15) H W C W C W C W C W Filing Status? MFJ SS HHS # exm? 332221 Std Ded? $11,600 $8,500 Rate Sch? Y-1 Z Situation 6

43. © Copyright 2011 by M. Ray Gregg. All rights reserved. 43 X1X2X3X4X5x11 H W C (15) H W C W C W C W C W Filing Status? MFJ SS HHS # exm? 332221 Std Ded? $11,600 $8,500$5,800 Rate Sch? Y-1 Z Situation 6

44. © Copyright 2011 by M. Ray Gregg. All rights reserved. 44 X1X2X3X4X5x11 H W C (15) H W C W C W C W C W Filing Status? MFJ SS HHS # exm? 332221 Std Ded? $11,600 $8,350$5,800 Rate Sch? Y-1 ZX Situation 6

45. © Copyright 2011 by M. Ray Gregg. All rights reserved. 45 Head of Household and Surviving Spouse Problem 2 – 44 –Cindy? No (SS) –Dick? Yes Abandoned Spouse

46. © Copyright 2011 by M. Ray Gregg. All rights reserved. 46 Head of Household and Surviving Spouse Problem 2 – 44 Problem 2 – 45

47. © Copyright 2011 by M. Ray Gregg. All rights reserved. 47 2009 W C W Filing Status? # exm? Std Ded? Rate Sch? Problem 2 – 45 a.

48. © Copyright 2011 by M. Ray Gregg. All rights reserved. 48 2009 W C W Filing Status? MFJ # exm? Std Ded? Rate Sch? Problem 2 – 45 a.

49. © Copyright 2011 by M. Ray Gregg. All rights reserved. 49 2009 W C W Filing Status? MFJ # exm? 2 or 3? Std Ded? Rate Sch? Problem 2 – 45 a.

50. © Copyright 2011 by M. Ray Gregg. All rights reserved. 50 2009 W C W Filing Status? MFJ # exm? 2 Std Ded? $11,600 Rate Sch? Y-1 Problem 2 – 45 a.

51. © Copyright 2011 by M. Ray Gregg. All rights reserved. 51 20092010 W C W C W Filing Status? MFJ # exm? 2 Std Ded? $11,600 Rate Sch? Y-1 Problem 2 – 45 a.

52. © Copyright 2011 by M. Ray Gregg. All rights reserved. 52 20092010 W C W C W Filing Status? MFJHH # exm? 21 Std Ded? $11,600$8,500 Rate Sch? Y-1Z Problem 2 – 45 a.

53. © Copyright 2011 by M. Ray Gregg. All rights reserved. 53 20092010 W C W C W Filing Status? MFJS # exm? 21 Std Ded? $11,600$5,800 Rate Sch? Y-1X Problem 2 – 45 a.

54. © Copyright 2011 by M. Ray Gregg. All rights reserved. 54 200920102011 W C W C W C W Filing Status? MFJSS # exm? 211 Std Ded? $11,600$5,800 Rate Sch? Y-1X Problem 2 – 45 a.

55. © Copyright 2011 by M. Ray Gregg. All rights reserved. 55 2009201020112012 W C W C W C W C W Filing Status? MFJSSS # exm? 2111 Std Ded? $11,600$5,800 Rate Sch? Y-1XXX Problem 2 – 45 a.

56. © Copyright 2011 by M. Ray Gregg. All rights reserved. 56 2009201020112012 W C W C W C W C W Filing Status? MFJSSS # exm? 2111 Std Ded? $11,600$5,800 Rate Sch? Y-1XXX What if full-time student?

57. © Copyright 2011 by M. Ray Gregg. All rights reserved. 57 2009201020112012 W C W C W C W C W Filing Status? MFJSS S # exm? 3221 Std Ded? $11,600 $5,800 Rate Sch? Y-1 X What if full-time student?

58. © Copyright 2011 by M. Ray Gregg. All rights reserved. 58 Head of Household and Surviving Spouse Problem 2 – 44 Problem 2 – 45 –Juanita? Single –Gertrude? H of H Abandoned Spouse

59. © Copyright 2011 by M. Ray Gregg. All rights reserved. 59 Exemptions Personal Dependent Samples

60. © Copyright 2011 by M. Ray Gregg. All rights reserved. 60 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.

61. © Copyright 2011 by M. Ray Gregg. All rights reserved. 61 * (entire year) Personal Dependents (after ’04) REQUIREMENTS FOR ALL qual IDcitizenjoint return claim no other dep CHILDRENOTHERS relationship age support abode (>1/2) relationship * gross income support

62. © Copyright 2011 by M. Ray Gregg. All rights reserved. 62 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.

63. © Copyright 2011 by M. Ray Gregg. All rights reserved. 63 Samples Pers+Dep=Total a.Ann1+1=2

64. © Copyright 2011 by M. Ray Gregg. All rights reserved. 64 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.

65. © Copyright 2011 by M. Ray Gregg. All rights reserved. 65 Samples Pers+Dep=Total a.Ann1+1=2 b.Barry1+?=

66. © Copyright 2011 by M. Ray Gregg. All rights reserved. 66 Samples Pers+Dep=Total a.Ann1+1=2 b.Barry1+1=2

67. © Copyright 2011 by M. Ray Gregg. All rights reserved. 67 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.

68. © Copyright 2011 by M. Ray Gregg. All rights reserved. 68 Samples Pers+Dep=Total a.Ann1+1=2 b.Barry1+1=2 c.Charles1+0=1

69. © Copyright 2011 by M. Ray Gregg. All rights reserved. 69 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.

70. © Copyright 2011 by M. Ray Gregg. All rights reserved. 70 Samples Pers+Dep=Total a.Ann1+1=2 b.Barry1+1=2 c.Charles1+0=1 d.Dave0+0=0

71. © Copyright 2011 by M. Ray Gregg. All rights reserved. 71 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.

72. © Copyright 2011 by M. Ray Gregg. All rights reserved. 72 Samples Pers+Dep=Total a.Ann1+1=2 b.Barry1+1=2 c.Charles1+0=1 d.Dave1+0=1 c.Ed1+0=1

73. © Copyright 2011 by M. Ray Gregg. All rights reserved. 73 Exemptions Personal Dependent Samples Problem 2 – 37 or exceptions

74. © Copyright 2011 by M. Ray Gregg. All rights reserved. 74 Problem 2 - 37 a.Who might be able to claim Anna? not < 10%

75. © Copyright 2011 by M. Ray Gregg. All rights reserved. 75 Mario or Elaine Problem 2 - 37 a.Who might be able to claim Anna?

76. © Copyright 2011 by M. Ray Gregg. All rights reserved. 76 Problem 2 - 37 b.What do they have to do?

77. © Copyright 2011 by M. Ray Gregg. All rights reserved. 77 Sign Multiple Support agreement

78. © Copyright 2011 by M. Ray Gregg. All rights reserved. 78 Problem 2 - 37 c.Can anyone claim head-of-household? Explain.

79. © Copyright 2011 by M. Ray Gregg. All rights reserved. 79 Problem 2 - 37 d.Can Mario claim an old age allowance for his mother? Explain. Gross Income

80. © Copyright 2011 by M. Ray Gregg. All rights reserved. 80 Problem 2 - 55

81. © Copyright 2011 by M. Ray Gregg. All rights reserved. 81 Problem 2 - 55

82. © Copyright 2011 by M. Ray Gregg. All rights reserved. 82 Problem 2 - 55

83. © Copyright 2011 by M. Ray Gregg. All rights reserved. 83 Problem 2 - 55

84. © Copyright 2011 by M. Ray Gregg. All rights reserved. 84 Problem 2 - 55

85. © Copyright 2011 by M. Ray Gregg. All rights reserved. 85 Problem 2 - 55

86. © Copyright 2011 by M. Ray Gregg. All rights reserved. 86 Problem 2 - 55

87. © Copyright 2011 by M. Ray Gregg. All rights reserved. 87 Problem 2 - 55

88. © Copyright 2011 by M. Ray Gregg. All rights reserved. 88 Problem 2 - 55

89. © Copyright 2011 by M. Ray Gregg. All rights reserved. 89 Problem 2 - 55

90. © Copyright 2011 by M. Ray Gregg. All rights reserved. 90 Problem 2 - 55

91. © Copyright 2011 by M. Ray Gregg. All rights reserved. 91 Problem 2 - 55

92. © Copyright 2011 by M. Ray Gregg. All rights reserved. 92 Problem 2 - 55

93. © Copyright 2011 by M. Ray Gregg. All rights reserved. 93 Problem 2 - 55

94. © Copyright 2011 by M. Ray Gregg. All rights reserved. 94

95. © Copyright 2011 by M. Ray Gregg. All rights reserved. 95

96. © Copyright 2011 by M. Ray Gregg. All rights reserved. 96 Problem 2 - 55

97. © Copyright 2011 by M. Ray Gregg. All rights reserved. 97 Problem 2 - 55

98. © Copyright 2011 by M. Ray Gregg. All rights reserved. 98 Problem 2 - 55

99. © Copyright 2011 by M. Ray Gregg. All rights reserved. 99 Problem 2 - 55

100. © Copyright 2011 by M. Ray Gregg. All rights reserved. 100 Problem 2 - 55

101. © Copyright 2011 by M. Ray Gregg. All rights reserved. 101 Problem 2 - 55

102. © Copyright 2011 by M. Ray Gregg. All rights reserved. 102 Problem 2 - 55 Any exceptions?

103. © Copyright 2011 by M. Ray Gregg. All rights reserved. 103 Problem 2 – 30 (a)

104. © Copyright 2011 by M. Ray Gregg. All rights reserved. 104 Problem 2 - 30 a.Assuming he is self-supporting

105. © Copyright 2011 by M. Ray Gregg. All rights reserved. 105 Problem 2 - 30 a.Assuming he is self-supporting

106. © Copyright 2011 by M. Ray Gregg. All rights reserved. 106 Problem 2 - 30 a.Assuming he is self-supporting

107. © Copyright 2011 by M. Ray Gregg. All rights reserved. 107 Problem 2 - 30 a.Assuming he is self-supporting

108. © Copyright 2011 by M. Ray Gregg. All rights reserved. 108 Problem 2 - 30 a.Assuming he is self-supporting

109. © Copyright 2011 by M. Ray Gregg. All rights reserved. 109 Problem 2 - 30 a.Assuming he is self-supporting

110. © Copyright 2011 by M. Ray Gregg. All rights reserved. 110 Problem 2 - 30 a.Assuming he is self-supporting

111. © Copyright 2011 by M. Ray Gregg. All rights reserved. 111 Problem 2 - 30 a.Assuming he is self-supporting

112. © Copyright 2011 by M. Ray Gregg. All rights reserved. 112 Problem 2 - 30 a.Assuming he is self-supporting

113. © Copyright 2011 by M. Ray Gregg. All rights reserved. 113 Problem 2 - 30 a.Assuming he is self-supporting

114. © Copyright 2011 by M. Ray Gregg. All rights reserved. 114 Problem 2 – 30 (b)

115. © Copyright 2011 by M. Ray Gregg. All rights reserved. 115 Problem 2 - 30 b.Assuming he is a dependent of parents

116. © Copyright 2011 by M. Ray Gregg. All rights reserved. 116 Problem 2 - 30 b.Assuming he is a dependent of parents

117. © Copyright 2011 by M. Ray Gregg. All rights reserved. 117 Problem 2 - 30 b.Assuming he is a dependent of parents

118. © Copyright 2011 by M. Ray Gregg. All rights reserved. 118 Problem 2 - 30 b.Assuming he is a dependent of parents

119. © Copyright 2011 by M. Ray Gregg. All rights reserved. 119 Problem 2 - 30 b.Assuming he is a dependent of parents

120. © Copyright 2011 by M. Ray Gregg. All rights reserved. 120 Problem 2 - 30 b.Assuming he is a dependent of parents

121. © Copyright 2011 by M. Ray Gregg. All rights reserved. 121 Minimum Standard Deduction (when dependents claimed by parents) See page 2/24 $950 or Earned Income + $300 $950 min $5,800 max

122. © Copyright 2011 by M. Ray Gregg. All rights reserved. 122 Problem 2 - 30 b.Assuming he is a dependent of parents

123. © Copyright 2011 by M. Ray Gregg. All rights reserved. 123 Problem 2 - 30 b.Assuming he is a dependent of parents

124. © Copyright 2011 by M. Ray Gregg. All rights reserved. 124 Problem 2 - 30 b.Assuming he is a dependent of parents

125. © Copyright 2011 by M. Ray Gregg. All rights reserved. 125 Problem 2 - 30 b.Assuming he is a dependent of parents

126. © Copyright 2011 by M. Ray Gregg. All rights reserved. 126