Federal Income Tax Accounting I-Test Fall 2017 Answer any 5 problems. Explain all your ansers and shoew someutatiens 1a. Max his father. Max cannot take $4,100 Moore is a widower (his spouse died in 2014) and maintalns a separate apartment for the dependency exemption for his father because his father’s inome s per year. What is the best filing status for Max for 2016? Ib. Nellie Fox maintains her home in which she and her daughter reside. The daughter does not quality as Nellie’s dependent. Nellie’s husband died the previous year. What is Nellie’s filing status for the year? Ie. Mr. and Mrs. Twig are both under 65 years of age and have no dependents. Their only income for the year was his salary of S15,500. During the year they made only a mominal amount of disbursements of the type that qualify as itemized deductions. What is their standard deduction on 2016 joint return? ergens, a 4S-year-old, is the sole support of his aged parents. His father is 72 and is in Id. John J good health. His mother is 70 and is blind. What is his total standard deduction? 2a. Determine the amount of taxable income of John Jones, who is single, 16 years of age and bas $300 of wage and $2,000 of interes parents. t income for the year. He is claimed as a dependent by his 2b. Jane Jarvis, age 17, who is claimed as a dependent by her parents, received income of S3,100 from a trust fund and $500 in wages. Jane had $1,100 in itemized deductions. What is Jane’s taxable income? 2c. Junior is a student, aged 20 at the local University. He is supported by his parents while going to school full time. Junior earns $2000 from a part-time job. What is Junior’s income for the year? 2d. Jim Johnson, age 25 lives at home and is supported by his parents. He has earned an incom of $12,000 and S3000 of dividend income. What is his taxable income?
Max Moore can file return as single because she is not eligible to file return as married filed jointly or married file single and not as head of household.
1b. Head of Household
Her daughter does not qualify for dependent so she can file return as head of household.
1c. Amount of standard deduction is $12,600 for 2016 married filing jointly.
1d. John can claim standard deduction of $9,300 available for head of household.