1 In meeting the gross income test for claiming his father a

1. In meeting the gross income test for claiming his father as a dependent, James must consider the income received by his father. This income included gross rents of $3,000 (expenses were $2,000), municipal bond interest of $1,000, dividends of $1,500, and Social Security of $4,000. What is James\' father\'s gross income for the qualifying relative test purposes? a. $1,500 b. $3,000 c. $4,500 d. $5,500

2. A child is treated as a qualifying child or a qualifying relative of the noncustodial parent if all other criteria are met and the noncustodial parent provides at least what amount for the child’s support during the year? a. $250 b.$400 c.$500 d.$600

3. Sally is trying to determine if her sister Heather, for whom she provided more than half of the support in 2016, meets the qualifying relative test. Heather is 35 years old and earned $3,500. Which statement determines if Heather meets the qualifying relative test?

a. Heather meets the qualifying relative test because she is under the age of 65

b. Heather meets the qualifying relative test because she earned less than $4,050

c. Heather fails the qualifying relative test because she is over the age of 24

d. Heather fails the qualifying relative test because she earned $3,500

4. Drew gets married in January of 2016 and provides support for his stepdaughter Melissa who is 26 years old. Melissa does not earn any income in 2016 since she is a full-time graduate student. Which of the following is true regarding Melissa as a qualifying relative?

a. Melissa qualifies based on her age of 26

b. Melissa qualifies based on her earned income

c. Melissa qualified because there is no age limit on qualifying relatives

d. Both B and C are correct

Solution

Answer

1.C.$4500

2.D.$600

3.B.Heather meets the qualifying relative test because she earned less than $4,050

4.D. Both B and C are correct