1. If the parents are divorced or separated during the year and the child lived with both before the separation, the custodial parent is the one with whom the child lived the more nights for that year.

True False

2. Payments made to a spouse that can be included in gross income of the spouse by way of alimony, separation payments or similar payments from an estate or trust, are considered payment for the support of a dependent.

True False

3. Tyler is single and is 18 years of age. He works part time and enrolled in school. Total revenues for 2011 were $ 8,000. Tyler lives with his parents. Qualifies as a dependent on them and they are choosing their exemption him in their tax reports for 2011. Since Tyler file his own income tax return, he may also declare his own exemption on that tax return.

True False

4. Theodore and Sharon (spouses) are the sole support of their 27 years old son, Thomas, who lives with them. Tomas could not work in 2011 due to his medical condition but received $ 3,500 from a charitable foundation for a speaking engagements. Theodore and Sharon can claim Thomas as an eligible dependent on their federal income tax return 2011.

True False

5. There are six requirements that must be satisfied before a child can be a qualifying child (as a dependent). Which of the following is NOT a requirement?

A. Relationship Requirement.
B. Residency Requirement.
C. Disability requirements.  
D. Special requirement for a qualifying child of more than one person.

6. Mr. and Mrs. Rose both are over 65 years of age. Their adjusted gross income is $100,000. During the year, their 35 year old son, Rigo, lived with them while attending college and earned $4,000. Mr. Rose's mother, Evangelina, lived with them until June 1 when she was put into a retirement home for an indefinite period to receive medical care. Evangelina received no income and only received total support from Mr. and Mrs. Rose. How many exemptions can they choose on their joint report for 2011?

A. 2.
B. 3.
C. 4.   
D. 6.

7. Santita and Cornelius Montes divorced in 2010. The divorce decree was silent on the exemption of his daughter 12-years-of-age, Julia, in 2010. Santita has legal custody of her daughter and has not signed any statement to give up the claim of exemption. Santita earned $ 8,000 and Cornelius earned $80,000. Julia has a newspaper delivery route and she earned $3,000. Julia lived with Cornelius for 4 months of the year and lived with Santita for 8 months. Who is eligible for Julia's exemption in 2011?

A. Julia can, being that she had gross income of over $3,000 and she does her own filing.
B. Since Julia lived with both Santita and Cornelius during the year, they both can choose exemption for Julia.
C. Santita can, being that she has legal and physical custody for more than half of the year.
D. Cornelius may being that he earned more than Santita and, therefore, it is assumed or presumed he has given more than 50% of Julia's support.

8. Romulo and Rebecca are the parents of four children, ages 10, 12, 15 and 22. The son 22 year son is a full time student and he earned $5,600. Romulo and Rebecca have provided more than 50% of the support for all children. If Romulus and Rebecca file their tax return jointly, how many exemptions are eligible for all the family members?

A. 5.
B. 4.
C. 6.   
D. 3.

9. To satisfy the gross income test to claim his parent as a dependent, Diego took into account the income received by his father. This income includes gross income over $4,000 from rentals (expenditures were $ 2,000), interest on municipal bonds of $1,200 (tax exempt), dividends of $ 1,400, and insurance benefits of $ 4,000. What is the gross income of Diego's father to meet the exemption requirement?

A. $3,400.
B. $5,400.
C. $9,400.   
D. $8,600.

10. Juliana and John, are married and file jointly, they have provided more than 50% of the support of their two young children and also for Juliana's mother. Each child had interest income of $700. Juliana's mother received a taxable pension of $ 2,500, dividends of $ 1,500 and $ 1,000 interest. How many exemptions can Juliana and John choose on their tax return?

A. 3.
B. 5.
C. 4.   
D. 2.

11. To meet the "gross income" requirement to qualify for exemption his father, the taxpayer must take into account the income received by the parent. This income includes income from gross of $ 4,000 (cost of $2,000), tax-exempt interest of $1,200 gross income from a partnership $1,000, dividends of $1,400, wages of $2,000 and social security benefits of $4,000. What is the gross income taken into account to meet the exemption requirements?

A. $8,400.
B. $6,400.
C. $9,600.   
D. $11,600.

12. Mary and Federico filed a joint tax return. They have a son, Frederick JR. and a daughter, Jane who are teenagers living at home. Frederick JR. has interest income of $400 and Jane has interest of $600. Mary's widowed mother lived with them for the entire year. Mary's mother received a taxable pension of $3,000, interest income $2,000 and dividends $1,000. Federico and Mary fully supported Mary's mother with the exception of her clothes. Mary's mother invested all her income received. How many exemptions can Mary and Federico claim on their joint tax return?

A. 2.
B. 3.
C. 4.   
D. 6.

13. Donald and Felicitas have adjusted gross income of $85,000. Their two children Maria, age 14, and David, age 20 (completed his education in the previous year), lived with them all year. Maria had interest income of $300. David had interest income of $600 and wages of $6,500. The Parents supported both children for more than 50%. How many exemptions can Donald and Felicitas choose?

A. 2.
B. 3.
C. 4.   
D. 1.

14. To meet the "gross income" requirement, the taxpayer must take into account the following income received by his mother who is 81 years-of-age: social security benefits $3,600, dividends $900, income from rentals $1,200 (rental expenses $200), and wages $600. The mother lived with the taxpayer for the entire year. What is correct gross income of the mother to be taken into account for this requirement?

A. $9,700.
B. $2,700.
C. $5,100.   
D. $3,900.

15. John and Josephine are the total support for the following individuals, all are United States Citizens, none of them live with John and Josephine. None of them (their dependents) file joint tax returns or have gross income.

Jocelyn, John's mother.

Julia, Josephine's step-mother.

Jeremiah, John's father in-law from his first wife (John's first wife died in 2010).

How many exemptions are John and Josephine eligible for on their joint tax return for 2011?

A. 3.
B. 2.
C. 1.
D. 5.

16. You can not include in your contribution to your child support any support paid by your son's own salary,

A. Only if you have paid that salary.
B. Even if you have paid that salary.
C. Unless that salary is just for working part time.
D. Only if the child's salary is money he earn while he was enrolled in school full time.

17. If a child receives social security benefits and uses them to support himself,

A. It is considered that such benefits have been provided by the child.
B. It is considered that such benefits have been provided by the parents.
C. These benefits are not considered fully used for support of that person. 
D. These benefits are not taken into account if you chose to receive payments for your son in the name of the parents.

18. If you provide accommodation to a person, is considered to have made support equal to the fair rental value of the room, apartment, house or other accommodation where the person lives. The fair rental value of accommodation includes

A. A reasonable allowance for heating and other utilities.
B. A reasonable allowance for utilization of furniture.
C. A reasonable allowance for appliances.  
D. Any of the above.

19. If you live with a person in his or her house rent free,

A. You must subtract the amount that provides for the support of that person the fair rental value of housing that person gives you.
B. Must add the amount that provides for the maintenance of that person the fair rental value of housing that person gives you.
C. Must disregard the value of this assistance because such assistance is considered a gift that is not taxable.
D. You must pay tax on the fair value of this amount because this a taxable gift which you must pay taxes.

20. You and your brother each contributed 20% of support for your mother for the year. Two people who are not related to your mother provided the remaining 60%. She does not live with them.

A. Your brother can claim your mother for the support if you sign an agreement allowing your brother claim her because together you supported her for more than half the total support.
B. No one can take the exemption because more than half of their support is provided by people who can not claim an exemption for her.
C. The two people who contributed 60% can claim exemption for the lady because they provided more than half the total support.
D. Only one person of which contributed 60% can claim an exemption for the lady only if one of them signs an agreement allowing the other to claim her.