Question

1. Peter and Susan Dillon are married and have two children: Paul, age 22 and a full-time student during the entire year and Mary, age 18. Paul has $6,000 in taxable interest income and Mary has $5,000 in taxable dividend income. Peter and Susan provide over half of the support of both children, who live at home. Neither child is married. Which of the following statements is true? a. Paul qualifies as a dependent of the Dillons b. Mary qualifies as a dependent of the Dillons only if she is a full-time student for at least five months. c. Because of his income level, Paul is not required to file a tax return. d. Because of her age, Mary is not required to file a tax return. 2. Smith fully supports his son who is 24 and single and has earned Income of $6,000. Smith also fully supports his daughter who is 20, married, in school full time all year, has $1,700 of earned income, and filed married filing jointly with her husband, who has $60,000 of earned income. Both the son and daughter live separately from Smith. Smith also fully supports his father who lives in a rest home. The father has $2,000 in taxable interest income and $7,000 in nontaxable social security payments. What is Smith's filing status and how many dependents does he have? a. Single and one. c. Single and three. e. Head of household and two. b. Single and two. d. Head of household and one. Head of household and three.

Answer 1

a. Paul qualifies as a dependent of the Dillions.

Paul qualifies as a dependent as he is a full-time student, under age 24

Mary qualifies as a dependent as she is under the age of 19. Paul and Mary are required to file tax return as their unearned income is more than $1,100 in 2019