Question : 61. Ronald 92 years old and in poor health. Clever investing : 1313486

61. Ronald is 92 years old and in poor health. Clever investing earlier in his life has left him with a sizeable income. He is able to support his son Ed. Ed is 67 years old and a bit “confused,” so he lives in a nursing home. Ed’s income is less than $2,000. How many exemptions should Ronald claim on his tax return?

a.1

b.2

c.3

d.4

e.None of the above

62. Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

a.The relative must receive less than $3,950 of gross income in order to qualify.

b.The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year.

c.The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year.

d.The gross income test does not have to be met provided the relative is a student.

e.All of the above.

63. Albert and Louise, ages 66 and 64, respectively, filed a joint return for 2014. They provided all of the support for their blind 19 year-old son, who had no gross income. They also provided the total support of Louise’s father, who is a citizen and life-long resident of Peru. How many exemptions may they claim on their 2014 tax return?

a.2

b.3

c.4

d.5

e.None of the above

64. Which of the following relatives will not satisfy the relationship test for the dependency exemption?

a.Sister

b.Adopted child

c.Aunt

d.Parent

e.All of the above satisfy the test

65. Which of the following is not a test that must be met for a child to be considered a dependent?

a.Age test

b.Domicile test

c.Citizenship test

d.Relationship test

e.Blood test

66. Mr. and Mrs. Vonce, both age 62, file a joint return for 2014. They provided all the support for their daughter who is 19 years old, legally blind, and who earns no income. Their son, age 21 and a full-time student at a university, had $4,200 of income and provided 70 percent of his own support during 2014. How many exemptions may Mr. and Mrs. Vonce claim on their 2014 tax return?

a.2

b.3

c.4

d.5

e.None of the above

67. Taxpayers who are blind get the benefit of:

a.An extra exemption.

b.An additional amount added to their standard deduction.

c.Two standard deductions.

d.None of the above.

68. Martin, a 50 year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin’s standard deduction for 2014?

a.$6,200

b.$9,100

c.$10,150

d.$12,400

e.None of the above

69. Jill is a 16-year-old child who is claimed as a dependent by her parents. Jill’s only income is $1,400 from her bank savings account. What is the amount of Jill’s standard deduction for 2014?

a.$1,200

b.$1,000

c.$3,950

d.$6,200

e.None of the above

70. Your standard deduction will be $6,200 in 2014 if you are:

a.Single and 67 years old.

b.Single and 45 years old.

c.Single, 27 years old and blind.

d.A nonresident alien.

e.A married individual filing a separate return and your spouse itemizes his deductions.