Question

a) A taxpayer who provides 40% of the support of her parents and claims them as dependents because of a multiple support agreement can use the head of household filing status even if the parents live in a nursing home. T or F

b) Rex and Roxanne are married and will file a joint return in 2014 (if required). Rex is 59 and blind, while Roxanne is 66 and in good health. At what exact amount of gross income will they be required to file a return?

c) Assume a married person (i.e., decedent) with no dependents dies during the year, and his/her spouse remarries the same year and files a joint return with his/her new spouse. What filing status will the decedent use when filing his last tax return. A) Single B) married filing jointly C) head of household D) married filing seperately

Answer 1

solution a) True. A taxpayer who provides 40% of the support of her parents and claims them as dependents because of a multiple support agreement can use the head of household filing status even if the parents live in a nursing home. Provided that tax payer is not married. And as per multiple support agreement, support needs to greater than 10%.

solution b) Rex and Roxanne can file return jointly. When gross income exceeds $12,400. They will get standard deduction of $1000 or sum of $350 and dependent's earned income, not to exceed the standard deduction for the dependent's filing status.

solution c) correct answer is d. Spouse remarries same year can file joint return with new spouse while decedent person need to file return with status as married filing seperately.