Study Unit 1: Filing Requirements

When preparing a current-year tax return, which of the following benefits are derived from the use of the previous year’s return?

Prevents gross mathematical errors
Identifies significant changes
Increases efficiency

A.I and II only.

B.I and III only.

C.II and III only.

D.I, II, and III.

Question 1 of 109

Which taxpayer information is necessary to have before preparing a tax return?

A.Immigration status.

B.Age of an individual.

C.Marital status.

D.All of the information is needed.

Question 2 of 109

All of the following are nondeductible expenses EXCEPT

A.Rent and insurance premiums paid for the taxpayer’s own dwelling.

B.Life insurance premiums paid by the insured.

C.Ordinary and necessary business expenses.

D.Payments for food.

Question 3 of 109

Which items from the prior-year return may be needed to complete the current-year return?

State income tax refund
AMT for credit
AGI
Gain (loss) carryover

A.I and II only.

B.II and IV only.

C.I, II, and IV.

D.I, II, III, and IV.

Question 4 of 109

All of the following income types are reported on Form 1099-MISC EXCEPT

A.Payment of non-employee compensation of $600 or more.

B.Payments made to a physician or supplier or provider of medical or healthcare services of $600 or more made in the course of your trade or business.

C.Payments of $10 or more in royalty income.

D.Payments of crop insurance proceeds of $600 or more.

Question 5 of 109

Which of the following is true regarding the Report of Foreign Bank and Financial Accounts (FBAR) requirements?

A.The FinCEN Form 114 (FBAR) must be filed by anyone with a financial interest in or signature authority over a foreign bank account.

B.The due date for the FBAR filing is generally July 15 of the current tax year for individuals.

C.The FinCEN Form 114 (FBAR) is filed with the current tax year individual income tax return.

D.The FinCEN Form 114 (FBAR) is filed online with the Financial Crimes Enforcement Network.

Question 6 of 109

When e-filing their federal return, a taxpayer who meets the requirements to file both Form 8938, Statement of Specified Foreign Financial Assets, and Form 114, Report of Foreign Bank and Financial Accounts, should

A.Attach both forms to their federal return.

B.Attach only the Form 8938 to their federal return and file the Form 114 through the Financial Crimes Enforcement Network’s e-filing system.

C.Attach only the Form 114 to their federal return as it contains the 8938 information.

D.Send both forms in separately to the Internal Revenue Service.

Question 7 of 109

The requirement to file the FinCEN Form 114 applies to U.S. persons with a financial interest in or signature authority over any foreign financial account(s), if the aggregate value of these accounts, at any time during the calendar year, exceeds

A.$1,000

B.$5,000

C.$7,500

D.$10,000

Question 8 of 109

Which of the below is a correct statement regarding Form 8938, Statement of Specified Foreign Financial Assets?

A.Form 8938 is attached to the taxpayer’s annual return and filed by the due date, including extensions.

B.If an income tax return is not required to be filed for the tax year, the taxpayer is still required to file Form 8938 when the value of specified foreign financial assets is more than the appropriate reporting threshold.

C.If the taxpayer is required to file Form 8938, the taxpayer must report the specified foreign financial assets in which the taxpayer has an interest only if the assets affect the taxpayer’s tax liability for the year.

D.Filing Form 8938 relieves the taxpayer of the requirement to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), if the taxpayer is otherwise required to file the FBAR.

Question 9 of 109

10.

John and Linda Smith are a childless married couple with no other dependents who lived apart for all of the current year. On December 31 of the current year, they were legally separated under a decree of separate maintenance. Based on the facts, which of the following is the only filing-status choice available to them for the current year?

A.Married filing joint return.

B.Married filing separate return.

C.Head of household.

D.Single.

Question 10 of 109

11.

Which of the following is NOT a requirement that must be met in determining whether a married taxpayer is considered unmarried for head of household filing-status purposes?

A.An individual must file a separate return.

B.An individual must pay more than one-half the cost of keeping up a home for the tax year.

C.An individual’s home must be, for the entire year, the main home of his or her child, stepchild, or qualified foster child whom (s)he or the noncustodial parent can properly claim as a dependent.

D.An individual’s spouse must not have lived in their home for the last 6 months of the tax year.

Question 11 of 109

12.

In 2025, Lisa was married and had two dependent children. Her husband died in April, and she did not remarry before the end of 2025. Which filing status should Lisa use for her tax return in 2025?

A.Single.

B.Married Filing Jointly.

C.Head of Household.

D.Qualifying Surviving Spouse with Dependent Child.

Question 12 of 109

13.

All of the following are requirements to claim head of household filing status EXCEPT

A.You are unmarried or considered unmarried on the last day of the year.

B.Your spouse did not live in your home during the last 6 months of the tax year.

C.Your parent must live in your home at least 6 months.

D.You paid more than half of the cost of keeping up your house for the entire year.

Question 13 of 109

14.

Joe is 37 years old. His wife died during the tax year, and he has not remarried. His deceased wife had no income. He has two minor children living with him. Joe paid all of the costs for keeping up his home for the tax year, and he has paid for all of the support of his wife and these children. The filing status with the lowest tax rate for which Joe qualifies is

A.Qualifying surviving spouse with dependent child.

B.Married filing separately.

C.Head of household.

D.Married filing jointly.

Question 14 of 109

15.

The standard deduction is increased for individuals who are age 65 and older and/or

A.Receiving unemployment compensation.

B.Retired from the military.

C.Beneficiaries of trusts.

D.Blind.

Question 15 of 109

16.

For 2025, Jane is unmarried and paid more than half the cost of keeping up her home. All of the following dependents would qualify Jane to file as head of household EXCEPT

A.Jane’s grandson, who lived with her but was absent from her home for 9 months in 2025 while attending boarding school.

B.Jane’s father, whom she can claim as a dependent and whose main home for 2025 was a home for the elderly for which Jane paid more than one-half the cost.

C.Jane’s married son, who could properly be claimed as a dependent on his father’s return only.

D.Jane’s sister, whom Jane can claim as a dependent and who lived with Jane until she died in May 2025.

Question 16 of 109

17.

Milton is 39 years old. He is divorced from his wife since March 1 of the tax year. They have two minor children. One child lives with Milton, and the other child lives with the mother. The children have been with their respective parents from March through December of the tax year. Milton provides all of the support for the minor child living with him. The filing status with the lowest rate that Milton qualifies for is

A.Married filing separately.

B.Single.

C.Head of household.

D.Married filing jointly.

Question 17 of 109

18.

Who would NOT be a qualifying person for purposes of filing as head of household in 2025?

A.Your mother, whom you can claim as a dependent.

B.Your adopted child who lives with you, is married, and can be claimed as your dependent.

C.Your foster child who lived with you all year and is your dependent.

D.Your aunt, related to you by blood. She does not live with you but is your dependent.

Question 18 of 109

19.

Phil is unmarried in 2025. His dependent daughter, Susan, lived with him all year. Property taxes of $2,500 and mortgage interest of $5,000 on the home where he and Susan live are divided equally with his ex-wife. Phil paid the utilities of $200 per month. What amount may Phil use as the costs of keeping up a home to qualify for head of household filing status?

A.$6,150

B.$4,950

C.$3,750

D.$9,900

Question 19 of 109

20.

Ms. N, who is married, wants to file as head of household for the current year. Which of the following will prevent her from filing as head of household?

A.Her spouse lived in her home for the final 6 months of the current year.

B.She and her husband did not commingle funds for support purposes.

C.She paid more than half the cost of keeping up her home for the tax year.

D.Her home was, for more than 6 months of the year, the principal home of her son, whom she can claim as a dependent.

Question 20 of 109

21.

Malcolm and Glenda were married, but they got divorced on June 1 of the current year. Their one minor child lived with Glenda all of the year. Glenda worked all year and provided more than half the cost of keeping up the home for herself and her minor child. Glenda signed Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, allowing Malcolm to claim their child as his dependent on his separately filed return. Glenda’s proper filing status is

A.Single.

B.Married filing jointly.

C.Married filing separately.

D.Head of household.

Question 21 of 109

22.

For federal income tax purposes, an individual is considered married for the whole year in all of the following situations EXCEPT

A.If on the last day of the tax year the individual has not remarried after being widowed during the tax year.

B.If on the last day of the tax year the individual is separated under an interlocutory (not final) decree of divorce.

C.Lived with another individual over half the year as husband and wife in a state that does not recognize a common-law marriage.

D.The individuals are married with no dependents and lived apart the whole year but are not legally separated under a decree of divorce or separate maintenance.

Question 22 of 109

23.

A husband and wife can file a joint return even if

A.The spouses have different tax years, provided that both spouses are alive at the end of the year.

B.The spouses have different accounting methods.

C.Either spouse was a nonresident alien at any time during the tax year, provided that at least one spouse makes the proper election.

D.They were divorced before the end of the tax year.

Question 23 of 109

24.

Mr. W died early in the current year. Mrs. W remarried in December of the same year and therefore was unable to file a joint return with Mr. W. What is the filing status of the decedent, Mr. W?

A.Single.

B.Married filing separate return.

C.Married filing joint return.

D.Head of household.

Question 24 of 109

25.

Mrs. W’s husband died in Year 1. She has not remarried and has maintained a home for herself and her dependent son, whom she can claim. In the summer of Year 3, the son was killed in an automobile accident. What is Mrs. W’s best filing status for Year 3?

A.Single.

B.Married filing separate return.

C.Qualifying surviving spouse.

D.Head of household.

Question 25 of 109

26.

Ms. Doe, by herself, maintains her home in which she and her unmarried daughter resided for the entire year. Her daughter is a qualifying child, but does not qualify as her dependent because she assigned the exemption to her ex-husband. Ms. Doe divorced her husband last year. What is Ms. Doe’s best filing status for the current year?

A.Qualifying surviving spouse.

B.Married filing jointly.

C.Single.

D.Head of household.

Question 26 of 109

27.

Which of the following is NOT a requirement you must meet to claim head of household filing status?

A.Your spouse did not live in your home during the last 6 months of the tax year.

B.You paid more than half of the cost of keeping up your home for the entire year.

C.Your home was the main home of your foster child for the entire year.

D.You are unmarried or considered unmarried on the last day of the year.

Question 27 of 109

28.

Which dependent relative does NOT have to live in the same household as the taxpayer claiming head of household filing status?

A.Daughter.

B.Mother.

C.Uncle.

D.Sister or brother.

Question 28 of 109

29.

James and Edna Evans are a childless married couple with no other dependents who lived apart for all of the year. On December 31, they were legally separated under a decree of separate maintenance. Which of the following is the only filing-status choice available to them for the year?

A.Married filing joint return.

B.Married filing separate return.

C.Head of household.

D.Single.

Question 29 of 109

30.

Which of the following is a requirement that must be met in determining whether a taxpayer is considered unmarried for head of household filing-status purposes?

A.The individual must be divorced or legally separated for over one year.

B.An individual must pay less than one-half the cost of keeping up a home for the tax year.

C.An individual’s home must be, for at least 6 months, the main home of his or her child, stepchild, or qualified foster child whom (s)he or the noncustodial parent can properly claim as a dependent.

D.An individual’s spouse must not have lived in their home for the entire tax year.

Question 30 of 109

31.

Mr. A, a calendar-year taxpayer, died January 15 of Year 2. His surviving spouse, Mrs. A, remarried December 15 of Year 2. The last year for which a joint return may be filed by or for Mr. and Mrs. A is

A.Year 1.

B.Year 2.

C.Year 3.

D.Year 4.

Question 31 of 109

32.

All of the following are reasons for not holding the “innocent” spouse liable for the tax (or any later assessments of tax, interest, or penalty) related to a joint return EXCEPT

A.The innocent spouse did not know, and had no reason to know, that there was a substantial understatement of the tax.

B.Taking into account the facts and circumstances, it would be inequitable to hold the innocent spouse liable.

C.The other spouse’s erroneous item resulted in a joint tax understatement.

D.The divorce decree states that the other spouse will be responsible for any amounts due on previously filed joint returns.

Question 32 of 109

33.

Identify the true statement regarding when innocent spouse relief can be requested.

A.The requesting spouse did not know and had no reason to know of the understatement of tax.

B.A joint overpayment was applied to a past-due obligation of the other spouse.

C.The requesting spouse claimed false deductions on the joint return.

D.The spouses have filed married filing separate tax returns.

Question 33 of 109

34.

All of the following are conditions for a taxpayer’s qualifying for innocent spouse relief EXCEPT

A.The return was jointly filed and had an understatement of tax due to erroneous items of the taxpayer’s spouse (or former spouse).

B.It would be unfair to hold the taxpayer liable for the understatement of tax, taking into account the facts of the case.

C.The couple was divorced, widowed, or legally separated or did not live together for the 12 months prior to the innocence claim.

D.Establishment of the fact that the taxpayer did not know and had no reason to know that there was an understatement of tax.

Question 34 of 109

35.

A married couple files a joint return but is subsequently unable to pay the taxes. The spouse not responsible for incurring the liability can reduce his or her personal liability through which of the following?

A.Innocent spouse relief.

B.Separation of liability relief.

C.Tax Court review relief.

D.Equitable treatment relief.

Question 35 of 109

36.

All of the following would disallow the claim for innocent spouse relief EXCEPT

A.The taxpayer knew of the errors and signed the joint return because (s)he was pressured or threatened by his or her spouse.

B.The taxpayer knew that his or her spouse received unreported income.

C.The taxpayer knew that his or her spouse deducted false or inflated expenses.

D.A reasonable person in similar circumstances would have known about the errors.

Question 36 of 109

37.

When can a spouse be considered an injured spouse on a tax return?

A.The spouse files a joint return even though the other spouse has no income or deductions.

B.The spouse files a joint return, and the other spouse owes a past-due amount.

C.The spouse files a married filing separately return and pays for the other spouse’s past-due amount.

D.The spouse has no reported income, and the other spouse owes a past-due amount.

Question 37 of 109

38.

When must the taxpayer file Form 8379 by in order to be considered an injured spouse?

A.Along with the joint tax return.

B.Within 3 years of the date the tax was paid if a return was not filed.

C.Within 3 years from the due date of the return.

D.Within 1 year from the date the return was due but not filed.

Question 38 of 109

39.

Which of the following is not a past-due debt to which a refund on a joint tax return can be applied in regard to an injured spouse?

A.Past-due child support.

B.Debts to federal agencies.

C.State unemployment compensation debts.

D.Past-due mortgage payments.

Question 39 of 109

40.

Mr. Todd, who is 43 years old, has lived apart from his wife since May 2025. For 2025, his two children, whom he can claim as dependents, lived with him the entire year, and he paid the entire cost of maintaining the household. Assuming that Mr. Todd cannot qualify to file a joint return for 2025, he must, nevertheless, file a return if his gross income is at least

A.$5

B.$31,500

C.$15,750

D.$23,625

Question 40 of 109

41.

Ms. Maple, a single woman age 65, retired in 2025. Prior to her retirement, she received a $7,000 bonus plus $5,900 in wages. After her retirement, she received $9,000 in Social Security benefits. Which of the following is true?

A.Ms. Maple does not have to file a 2025 income tax return.

B.Ms. Maple has to file a 2025 income tax return.

C.Ms. Maple has to file a 2025 income tax return but may exclude the $7,000.

D.Ms. Maple has to file a 2025 income tax return but may exclude the $9,000 in Social Security benefits from income.

Question 41 of 109

42.

John Stith, whose father died June 15, 2025, is the executor of his father’s estate. John is required to file a final income tax return for his father. When is this return due if he does not file for an extension (ignoring Saturdays, Sundays, and holidays)?

A.October 15, 2025.

B.March 15, 2026.

C.April 15, 2026.

D.June 15, 2026.

Question 42 of 109

43.

In which of the following situations is no return required to be filed for 2025?

A.Single, filing status single, under age 65, gross income $21,000.

B.Married, filing joint status, both spouses under age 65, gross income $35,000.

C.Single, filing status single, age 70, gross income $17,350.

D.Married, separate filing status, age 65, gross income $10,000.

Question 43 of 109

44.

Which of the following is true regarding the filing of Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return?

A.Filing Form 4868 provides an automatic 2-month extension of time to file and pay income tax.

B.Any U.S. citizen who is out of the country on April 15, 2026, is allowed an automatic 6-month extension of time to file his or her 2025 return and pay any federal income tax due.

C.Interest is charged on tax not paid by the due date of the return even if an extension is obtained.

D.Electronic filing cannot be used to get an extension of time to file.

Question 44 of 109

45.

Which of the following statements is true regarding the filing of a Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, for your 2025 tax return?

A.Interest is not assessed on any income tax due if a Form 4868 is filed.

B.Form 4868 provides the taxpayer with an automatic additional 8-month extension to file.

C.Even though you file Form 4868, you will owe interest and may be charged a late payment penalty on the amount you owe if you do not pay the tax due by the regular due date.

D.A U.S. citizen who is out of the country on April 15 will be allowed an additional 12 months to file as long as “Out of the Country” is written across the top of Form 4868.

Question 45 of 109

46.

Ms. Alexander properly executed a request for an automatic extension of time to file her 2025 tax return. She must file her 2025 return on or before (ignoring Saturdays, Sundays, and holidays)

A.April 15, 2026.

B.July 15, 2026.

C.August 15, 2026.

D.October 15, 2026.

Question 46 of 109

47.

Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, will provide the taxpayer with the following:

A.An automatic extension of 2 months for taxpayers out of the country on April 15.

B.An automatic extension of 6 months to pay the taxes due.

C.An automatic extension of 6 months to file the return.

D.An automatic extension of 8 months to file the return.

Question 47 of 109

48.

Ensign Beleau, a calendar-year taxpayer, was assigned a post of duty on the U.S.S. Eisenhower. The ship went on a 6-month cruise of the Mediterranean Sea, leaving February 15, 2026. Ensign Beleau did not file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Beleau is automatically granted an extension of time to file his 2025 income tax return and pay any tax due until (ignoring Saturdays, Sundays, and holidays)

A.June 15, 2026.

B.August 15, 2026.

C.October 15, 2026.

D.No automatic extension is granted. Beleau must file and pay tax due by April 15, 2026.

Question 48 of 109

49.

During 2025, Hanya was a nonresident alien engaged in a business in the United States. All of her income was from self-employment. Hanya is a calendar-year taxpayer. When is Hanya’s income tax return due if she does not apply for an extension of time to file (ignoring weekends and holidays)?

A.April 15, 2026.

B.June 15, 2026.

C.August 15, 2026.

D.October 15, 2026.

Question 49 of 109

50.

All of the following concerning extension of time to file are correct EXCEPT

A.An automatic 6-month extension can be requested by filing Form 4868.

B.If the required payment is made by credit card by the regular due date for the return, the return can be filed any time before the 6-month extension period ends.

C.Requesting an automatic 6-month extension before the regular due date for the return postpones the requirement to make payment of any tax due.

D.A U.S. citizen or resident who is on military or naval duty outside the U.S. (or Puerto Rico) on April 15 is given an automatic 2-month extension without the necessity of filing Form 4868.

Question 50 of 109

51.

Filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, gives you

A.An extension of time to pay the amount of taxes due.

B.A 6-month extension to file the tax return.

C.A penalty-free period of 4 months if you cannot pay the taxes due by the filing date.

D.No interest on the amount due from the original due date of the return, which for most taxpayers is April 15.

Question 51 of 109

52.

Which of the following statements regarding extensions of time to file is true?

A.An automatic 2-month extension can be obtained by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

B.An automatic 4-month extension can be obtained by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

C.A penalty for late payment may still be charged even if an extension is granted.

D.An extension request for a Year 1 individual income tax return must be filed by October 15, Year 2.

Question 52 of 109

53.

Mr. T is age 21, is single, and cannot be claimed as a dependent by another taxpayer. For 2025, he must file a federal income tax return if he had gross income of at least

A.$5,200

B.$15,750

C.$1,350

D.$2,000

Question 53 of 109

54.

Mr. and Mrs. X plan to file a joint return for 2025. Neither is over 65 or blind, nor do they have any dependents. What is the amount of gross income required before they must file a return?

A.$5,200

B.$33,100

C.$34,700

D.$31,500

Question 54 of 109

55.

Mr. and Mrs. Jones, both over age 65, elect joint return status. They must file a return for 2025 if their combined gross income equals or exceeds

A.$31,500

B.$1

C.$33,100

D.$34,700

Question 55 of 109

56.

Which of the following taxpayers must file a return for 2025?

A.Married taxpayers filing jointly who have income of $31,000 for the year and one child who is a dependent.

B.A single taxpayer, age 67, with interest and dividend income of $17,000.

C.A single taxpayer, claimed as a dependent by his parents, who earns $15,000 from a part-time job and has no unearned income.

D.A taxpayer who files as a head of household with two dependents and who earns $24,000.

Question 56 of 109

57.

Bryce, who is 44 years old, has lived apart from his wife since May 2025. For 2025, his three children, whom he can claim as dependents, lived with him the entire year, and he paid the entire cost of maintaining the household. Assuming that Bryce cannot qualify to file a joint return for 2025, he must, nevertheless, file a return if his gross income is at least

A.$15,750

B.$23,625

C.$5,200

D.$31,500

Question 57 of 109

58.

Midshipman Mike, a calendar-year taxpayer, was assigned a post of duty on the U.S.S. Enterprise. The ship went on a 6-month cruise of the Mediterranean Sea, leaving February 15, Year 2. Mike did not file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Mike is automatically granted an extension of time to file his Year 1 income tax return and pay any tax due until

A.October 15, Year 2.

B.August 15, Year 2.

C.June 15, Year 2.

D.No automatic extension is granted. Mike must file and pay tax due by April 15, Year 2.

Question 58 of 109

59.

During 2025, student D, who is single, was claimed as a dependent by his parents. D earned $1,500 from a part-time job at a gas station. How much interest or other unearned income would D have to receive at a minimum to require him to file an income tax return for 2025?

A.$1

B.$451

C.$15,751

D.$13,050

Question 59 of 109

60.

Matt has a certified statement from his optometrist on December 1, 2025, that confirms he can see no better than 20/250. For tax year 2025, which is correct?

A.Matt is not eligible for the additional standard deduction for blindness as he is only partially blind.

B.Matt is eligible for the additional standard deduction for blindness in 2025.

C.Matt is eligible for the additional standard deduction for blindness in 2026, the first full year of his blindness.

D.Matt is not eligible for the additional standard deduction for blindness as he can see better than 20/300.

Question 60 of 109

61.

All of the following are true EXCEPT

A.A brother-in-law must live with the taxpayer the entire year to be claimed as a dependent even if the other tests are met.

B.A son, age 21, was a full-time student who earned $6,000 from his part-time job. The money was used to buy a car. Even though he earned $6,000, his parents can claim him as a dependent if the other dependency tests were met.

C.For each person claimed as a dependent, the Social Security number, adoption taxpayer identification number, or individual taxpayer identification number must be listed.

D.If a married person files a separate return, (s)he cannot claim his or her spouse as a dependent even if the spouse had no gross income and was not the dependent of another taxpayer.

Question 61 of 109

62.

Section 152 of the Code contains two sets of tests, “qualifying child” and “qualifying relative,” either of which may be applied to determine whether an individual has dependency status and may therefore be claimed as a dependent by a taxpayer. Which of the following is NOT a test under both classifications?

A.Citizenship test.

B.Residence test.

C.Joint return test.

D.Gross income test.

Question 62 of 109

63.

Jill and John, married filing jointly, have provided more than 50% of the support for two minor children and Jill’s mother. The children each had interest income of less than $700. Jill’s mother received a taxable pension of $3,950, dividends of $1,500, and interest of $1,000. How many dependents can the taxpayers claim on their 2025 tax return?

A.1

B.3

C.2

D.0

Question 63 of 109

64.

John is the sole support of his mother. To claim her as a dependent on his Form 1040 for 2025, she must be a resident of which of the following countries for some part of calendar year 2025?

A.United States.

B.Mexico.

C.Canada.

D.Any of the answers are correct.

Question 64 of 109

65.

Thomas and Rebecca are the parents of four children, ages 10, 12, 15, and 22. Their 22-year-old child is a full-time student with income of $7,000. Thomas and Rebecca provided more than 50% of the support for all their children. If they file a joint return, how many dependents can they claim for the above family members?

A.3

B.6

C.4

D.2

Question 65 of 109

66.

In meeting the “gross income” test for claiming his father as a dependent, a taxpayer had to consider the income received by his father. This income included gross rents of $4,000 (expenses were $2,000), mutual fund municipal bond interest of $1,200, corporate bond interest of $1,000, dividends of $1,400, wages of $2,000, and Social Security of $4,000. What is the father’s gross income for dependency test purposes?

A.$2,000

B.$8,400

C.$9,600

D.$11,600

Question 66 of 109

67.

In meeting the gross income test for claiming his father as a dependent, Doug considered the income received by his father. This income included gross rents of $4,000 (expenses were $2,000), municipal bond interest of $1,200, dividends of $2,400, and Social Security of $4,000. What is Doug’s father’s gross income for dependency test purposes?

A.$4,400

B.$6,400

C.$10,400

D.$9,600

Question 67 of 109

68.

John and Joanne are the sole support of the following individuals, all U.S. citizens, none of whom lives with them. None of these individuals files a joint return or has any gross income.

Jennie, John’s mother

Julie, Joanne’s stepmother

Jonathan, father of John’s first wife

How many dependents may John and Joanne claim on their joint return?

A.3

B.2

C.1

D.0

Question 68 of 109

69.

Paula filed a separate return and paid more than half the cost of keeping up her home. Her spouse did not live in her home during the last 6 months of the tax year. Which one of the following dependents would qualify Paula to file as head of household?

A.Paula’s son, who lived with her but was absent from her home for 9 months during the year while attending boarding school.

B.Paula’s uncle, whom she can claim as a dependent and whose main home during the current year was a home for the elderly for which Paula paid more than one-half the cost.

C.Paula’s married son, who could properly be claimed as a dependent on his father’s return only.

D.Paula’s sister, whom Paula cannot claim as a dependent and who lived with Paula until she died in May.

Question 69 of 109

70.

Luis and Rosa, citizens of Costa Rica, moved in 2023 to the United States, where they both lived and worked. In 2025, they provided the total support for their four young children (all under the age of 10). Two children lived with Luis and Rosa in the U.S., one child lived with his aunt in Mexico, and one child lived with her grandmother in Costa Rica. None of the children earned any income. All of the children were citizens of Costa Rica. The child in Mexico was a resident of Mexico, and the child in Costa Rica was a resident of Costa Rica. How many total dependents may Luis and Rosa claim on their 2025 joint income tax return?

A.0

B.2

C.3

D.4

Question 70 of 109

71.

For 2025, Mr. and Mrs. Randall filed a joint return. During the year, they provided more than 50% of the support for the following individuals:

The Randalls’ single son, age 18, was a full-time student for 4 months. He lived with them all year and earned $6,000, which was spent on his support.
The Randalls’ single daughter, age 25 and a full-time student for 12 months, lived with them all year. She earned $4,000, which was spent on her support.
The Randalls’ granddaughter, age 3, lived with them from June through December.
Mrs. Randall’s mother, age 68, a Canadian citizen living in Canada, received Social Security benefits of $6,000.
Mrs. Randall’s cousin, age 16, lived with them all year and earned $3,000, which was spent on her support.

How many dependents may Mr. and Mrs. Randall claim on their 2025 tax return?

A.2

B.3

C.4

D.5

Question 71 of 109

72.

For 2025, Mr. and Mrs. White filed a joint return. During 2025, they provided more than 50% of the support for the following individuals, all of whom are U.S. citizens:

The Whites’ single daughter, age 22, was a full-time student for 8 months. During the summer, she earned $6,000, which was spent on her support.
Mr. White’s cousin, age 15, lived with them from May to December.
Mr. White’s widowed mother, age 70, lived with them and had no income.
The Whites’ single daughter, age 20, lived with them the full year. She had gross income of $6,050.
Mrs. White’s widowed father, age 64, lived alone, and his sole source of income was Social Security of $6,000.
The Whites’ legally adopted son, age 10, lived with them from February to December.

How many dependents may Mr. and Mrs. White claim on their 2025 tax return?

A.3

B.4

C.5

D.6

Question 72 of 109

73.

Holly and Harp Oaks were divorced in 2024. The divorce decree was silent regarding dependency for their 12-year-old daughter, June, for 2025. Holly has legal custody of her daughter and did not sign a statement releasing the dependent claim. Holly earned $8,650, and Harp earned $80,000. June had a paper route and earned $5,850. June lived with Harp 4 months of the year and with Holly 8 months. Who may claim the dependent for June in 2025?

A.June may, since she had gross income over $5,200 and files her own return.

B.Since June lived with both Holly and Harp during the year, they both may claim her as a dependent.

C.Holly may, since she has legal custody and physical custody for more than half the year.

D.Harp may, since he earned more than Holly and therefore is presumed to have provided more than 50% of June’s support.

Question 73 of 109

74.

For 2025, Mr. and Mrs. Garcia filed a joint return. During 2025, they provided more than 50% of the support for the following individuals, all of whom are U.S. citizens. Mr. Garcia’s Aunt Maria, age 63, lived with them all year and had no income. Aunt Maria’s single daughter, Julia, lived with the Garcias all year. Julia worked and earned $2,000, her only income for the year. The Garcias’ son, age 21, was a full-time student for 9 months. During the summer, he worked and earned $5,500. How many dependents may Mr. and Mrs. Garcia claim on their 2025 tax return?

A.0

B.1

C.3

D.5

Question 74 of 109

75.

Mrs. Brown had taxable income of $600, Social Security benefits of $1,800, and tax-exempt interest of $200. She used all of these amounts for her own support. Her son paid the rest of her support. Which of the following amounts of support paid by her son would meet the support test to allow him to claim Mrs. Brown as a dependent?

A.$900

B.$1,800

C.$2,100

D.$2,700

Question 75 of 109

76.

Ada lived with her son Robert and his wife Barbara. Ada’s only source of income was a $1,500 fully taxable pension, which she spent on clothes and recreation. Robert and Barbara paid Ada’s medical and drug expenses of $600 for the year. Robert and Barbara’s total food expense for the household was $6,000. The fair rental value of the lodging provided Ada was $1,200 for the year, based on the cost of similar room facilities. What was Ada’s total support for the year for purposes of determining whether Robert and Barbara can claim Ada as a dependent?

A.$1,800

B.$3,300

C.$5,300

D.None of the answers are correct.

Question 76 of 109

77.

Don and Joyce have adjusted gross income of $85,000. Their two children, Mary, age 14, and David, age 20 (who completed his education in the prior year), lived with them all year. Mary had interest income of $300. David had interest income of $600 and wages of $8,200. The parents provided over 50% of the support of both children. How many dependents can Don and Joyce claim?

A.0

B.1

C.2

D.3

Question 77 of 109

78.

With regard to claiming a dependent, all of the following statements are true EXCEPT

A.A person does not meet the member-of-the-household test if at any time during the tax year the relationship between the taxpayer and that person violates local law.

B.A person who died during the year, but was a member of your household until death, will meet the member-of-the-household test.

C.To meet the citizenship test, a person must be a U.S. citizen or resident, or a resident of Canada or Mexico.

D.In calculating a person’s total support, do not include tax-exempt income used to support that person.

Question 78 of 109

79.

For the year, Mr. and Mrs. Cunningham filed a joint return. During the year, they provided more than 50% of the support for the following individuals:

The Cunninghams’ single son, age 20, lived with them all year and earned $5,950, which was spent on his support.

The Cunninghams’ single daughter, age 28 and a full-time student for 12 months. She earned $5,750, which was spent on her support.

Mrs. Cunningham’s mother, age 68, a Mexican citizen living in Mexico, received Social Security benefits of $5,950.

How many dependents may Mr. and Mrs. Cunningham claim on their tax return?

A.0

B.1

C.2

D.3

Question 79 of 109

80.

Mr. and Mrs. Green filed a joint return. During the year, they provided more than 50% of the support for the following individuals, all of whom are U.S. citizens:

The Greens’ daughter, age 23, was a full-time student for 8 months. During the summer, she earned $5,900, which was spent on her support.

Mr. Green’s cousin, age 16, lived with them from March through December.

Mr. Green’s widowed mother, age 70, lived with them and had no income.

The Greens’ daughter, age 22, lived with them the full year. She had gross income of $5,700.

Mrs. Green’s widowed father, age 64, lived alone, and his sole source of income was Social Security of $5,500.

How many dependents may Mr. and Mrs. Green claim on their tax return?

A.0

B.3

C.4

D.5

Question 80 of 109

81.

Which of the following is included in determining the total support of a dependent?

A.Fair rental value of lodging provided.

B.Allocable portion of mortgage payment on lodging facility.

C.Social Security benefits added to savings account.

D.Life insurance premiums.

Question 81 of 109

82.

All of the following are included in calculating the total support of a dependent EXCEPT

A.Child care even if the taxpayer is claiming the credit for the expense.

B.Amounts veterans receive under the GI bill for tuition and allowances while in school.

C.Medical insurance benefits, including basic and supplementary Medicare benefits received.

D.Tax-exempt income, savings, or borrowed money used to support a person.

Question 82 of 109

83.

Jim Planter, who reached age 65 on January 1 of the current year, filed a joint return for the year with his wife, Rita, age 50. Mary, their 21-year-old daughter, was a full-time student at a college until her graduation on June 2 of the current year. The daughter had $10,400 of income and provided 25% of her own support during the year. In addition, during the year the Planters were the sole support for Rita’s niece, who had no income and resided with the Planters. How many dependents should the Planters claim on their current-year tax return?

A.0

B.1

C.2

D.4

Question 83 of 109

84.

Mr. and Mrs. P are filing a joint return for the current year. They have three children. Ben is 7 and has no income. Marie, who is 18, earned $2,500 from a part-time job. James, who is 25 and attends college as a full-time student, earned $5,650 during the summer. Mr. and Mrs. P provide over one-half of their children’s support. Mr. P’s mother also lives with them but is self-supporting. How many dependents can Mr. and Mrs. P claim on their current-year return?

A.1

B.2

C.3

D.4

Question 84 of 109

85.

In the current year, Sam Dunn provided more than half the support for his wife, his father’s brother, and his cousin. Sam’s wife was the only relative who was a member of Sam’s household. None of the relatives had any income, nor did any of them file an individual or a joint return. All of these relatives are U.S. citizens. Which of these relatives should be claimed as a dependent or dependents on Sam’s current-year joint return?

A.Only his wife.

B.Only his father’s brother.

C.Only his cousin.

D.His wife, his father’s brother, and his cousin.

Question 85 of 109

86.

During the current year, Robert Moore, who is 50 years old and single, maintained his home in which he and his widowed father, age 75, resided. His father had $3,650 interest income from a savings account and also received $3,000 from Social Security during the current year. Robert provided 60% of his father’s total support for the current year. What is Robert’s filing status for the current year, and how many dependents should he claim on his tax return?

A.Head of household and one dependent.

B.Single and one dependent.

C.Head of household and zero dependents.

D.Single and zero dependents.

Question 86 of 109

87.

For 2025, Mr. and Mrs. Taxpayer filed a joint return. During 2025, they provided more than 50% of the support for the following individuals, all of whom are U.S. citizens:

The Taxpayers’ single daughter, age 22, was a full-time student for 8 months. During the summer, she earned $7,000, which was spent on her support.
Mr. Taxpayer’s cousin, age 16, lived with them from May to December.
Mr. Taxpayer’s widowed mother, age 72, lived with them and had no income.
The Taxpayers’ single daughter, age 19, lived with them the full year. She had gross income of $4,300.
Mrs. Taxpayer’s widowed father, age 64, lived alone, and his sole source of income was Social Security of $6,150.
The Taxpayers’ legally adopted son, age 10, lived with them from February to December.

How many dependents may Mr. and Mrs. Taxpayer claim on their 2025 tax return?

A.5

B.4

C.3

D.6

Question 87 of 109

88.

All of the following qualify as a dependent EXCEPT

A.Your deceased wife’s stepmother, who lived with you for 7 months during the tax year. She had no income and filed no tax return. You provided more than half of her total support.

B.Your son who filed a joint return with his wife to receive a refund of all his withholding. No tax liability would have been due even if they had filed separate returns. All other dependent tests are met.

C.Your 23-year-old daughter who is not a student and earned $5,400. She lived with you all year, and you provided more than half of her total support.

D.Your 17-year-old niece who is a resident of Canada but lived with you for 10 months. She earned $500 during the summer, and you provided more than half of her total support.

Question 88 of 109

89.

Which of the following forms is used to claim a dependent when there is more than one eligible person who can claim the dependent?

A.Form 2555 (Foreign Earned Income).

B.Form 2106 (Employee Business Expenses).

C.Form 2120 (Multiple Support Declaration).

D.Form 8282 (Donee Information Return).

Question 89 of 109

90.

When can a dependent child’s income be taxed at his or her parent’s marginal rate?

A.When a dependent child has any income and is under 19.

B.When a dependent child has net unearned income regardless of his or her age.

C.When a dependent child has unearned income and is under age 19.

D.When a dependent child has net unearned income, has earned income less than half of his or her support, and is under age 19.

Question 90 of 109

91.

A child may be subject to the kiddie tax in the current year if

A.The child is required to file a tax return and he or she files a joint return for the year.

B.The child is under age 18 at the end of the tax year.

C.The child has only nontaxable income of more than $2,700.

D.Neither parent of the child is alive at the end of the year.

Question 91 of 109

92.

Jamie is 13 years old. She received income in the current year from the following sources:

Babysitting for neighbor	$ 100
A trust created and funded by her grandparents	2,000
Dividends from stocks given to her by her parents	500
Interest on a bank account (deposits from last year’s babysitting)	50

What is Jamie’s unearned income for the year?

A.$500

B.$2,500

C.$2,550

D.$2,650

Question 92 of 109

93.

Marcy, age 12, earned $400 from babysitting during 2025. Her parents claim her as a dependent. She also had interest and dividends of $3,200 during the year. She did not itemize deductions. What is her net unearned income for 2025?

A.$3,600

B.$3,200

C.$1,850

D.$500

Question 93 of 109

94.

Chris, age 5, has $4,000 of interest income and no earned income this year. Assuming the current applicable standard deduction is $1,350, how much of Chris’s income will be taxed at his parents’ marginal rate?

A.$0

B.$1,300

C.$2,650

D.$4,000

Question 94 of 109

95.

The standard deduction for a dependent with unearned income is limited to which of the following?

A.The lesser of $1,350 or the amount of earned income plus $450.

B.The greater of $1,350 or the amount of unearned income plus $450.

C.The lesser of $1,350 or the amount of unearned income plus $450.

D.The greater of $1,350 or the amount of earned income plus $450.

Question 95 of 109

96.

How is the net unearned income of a dependent under the age of 19 taxed?

A.It is taxed to the dependent at the dependent’s parents’ marginal rate.

B.It is taxed to the dependent at 30%.

C.It is taxed to the taxpayer who claimed the dependent at the dependent’s parents’ marginal rate.

D.Net income is not taxed unless it is earned.

Question 96 of 109

97.

Muhammad’s father claimed him as a dependent on his tax return. Muhammad had unearned income of $3,600 in the most recent tax year. What is the minimum allowed reduction in unearned income that Muhammad is eligible to receive?

A.$0

B.$1,350

C.$3,600

D.$2,700

Question 97 of 109

98.

Net unearned income of a dependent is unearned income minus the sum of $1,350 and which of the following?

A.The excess of allowable deductions that are directly connected with the production of unearned income over $1,350.

B.The amount of the standard deduction or the itemized deductions only.

C.The greater of $1,350 of the standard deduction or $1,350 of itemized deductions or the amount of allowable deductions that are directly connected with the production of unearned income.

D.The amount of the standard deduction only.

Question 98 of 109

99.

Which of the following is an example of unearned child income?

A.Bonuses.

B.Dividends.

C.Salary.

D.Tips.

Question 99 of 109

100.

Jean Blanc, a citizen and resident of Canada, is a professional hockey player with a U.S. hockey club. Under Jean’s contract, he received $68,500 for 165 days of play during the current year. Of the 165 days, 132 days were spent performing services in the United States and 33 playing hockey in Canada. What is the amount to be included in Jean’s gross income on his Form 1040-NR?

A.$0

B.$34,250

C.$54,800

D.$68,500

Question 100 of 109

101.

Mr. H is a foreign student studying for a degree in the United States. There is no income tax treaty between his country and the United States. During the 9 months of the school year, Mr. H is employed part-time by a corporation incorporated in his home country doing business in the United States. During summer vacation, Mr. H returns home, where he is employed by the same company. Which of the following statements is true regarding U.S. taxes?

A.All income is taxable on a U.S. tax return.

B.All income is excludable, and filing a U.S. tax return is not required.

C.Only income earned for services in the United States is taxable.

D.All income is taxable on a U.S. tax return, and credit is allowed for foreign taxes paid on his summer income.

Question 101 of 109

102.

Rhett, a U.S. resident, and his wife, Florencia, a nonresident alien, both make the proper election to file a joint return. As a corporate pilot, Rhett has earned income from both domestic and foreign sources. Florencia has earned income from both her part-time job in the U.S. and from video arcades her family owns and operates in her native Venezuela. The couple also has foreign sourced interest income. On what income will the couple be taxed?

A.Rhett’s domestic and foreign income.

B.Rhett’s income and Florencia’s part-time job.

C.All income except for the foreign sourced interest.

D.All of their worldwide income.

Question 102 of 109

103.

If a nonresident alien receives income that is effectively connected with U.S. trade or business, which itemized deductions may be taken?

A.Casualty and theft losses from a federally declared disaster.

B.Federal income taxes.

C.A charitable contribution to a charitable organization in Germany.

D.Mortgage interest on a primary residence.

Question 103 of 109

104.

Most types of U.S. source income received by a foreign person are subject to

A.No U.S. tax.

B.U.S. tax at a 30% rate.

C.U.S. tax at a 15.3% rate.

D.U.S. tax at a rate equal to the rate applied by the taxpayer’s country of residence.

Question 104 of 109

105.

A nonresident alien received a $50,000 scholarship from a U.S. corporation to go to a university in the individual’s resident country, which has a 20% flat tax. How much U.S. tax must be paid on the scholarship?

A.$0

B.$15,000

C.$10,000

D.$7,650

Question 105 of 109

106.

Flavia Tillen is a German citizen who had never before been in the United States. She entered the United States on a visa on May 5, 2025, and stayed the rest of the year. Her residential status for 2025 is

A.Single-status alien.

B.Dual-status alien.

C.U.S. citizen.

D.Nonresident alien.

Question 106 of 109

107.

Tamar Zimmermann is a nonresident alien for the 2025 tax year. Which of the following statements is false?

A.Tamar is required to file a return if he earns any wages effectively connected with a U.S. trade or business.

B.If Tamar receives a scholarship for activities conducted outside the U.S., it is treated as foreign source income and therefore is not subject to taxation.

C.Tamar can deduct certain itemized deductions if he receives income that is effectively connected with a U.S. trade or business.

D.Tamar is not eligible for the credit for the elderly or the education credits if he elects to be treated as a U.S. resident.

Question 107 of 109

108.

Rike and Jorie Kistner are married. Rike is a U.S. citizen, and Jorie is a nonresident alien. They have elected to treat Jorie as a resident of the U.S. Jorie’s resident status can be terminated by all of the following means EXCEPT

A.Death.

B.Divorce or legal separation.

C.Conviction of a misdemeanor.

D.Inadequate records.

Question 108 of 109

109.

The spouse who revokes the resident status of the nonresident alien spouse must attach a signed statement declaring that the choice is being revoked. The statement revoking the choice must include all of the following EXCEPT

A.The reason for status termination.

B.The name, address, and Social Security number (or taxpayer identification number) of each spouse.

C.The name and address of any person who is revoking the choice for a deceased spouse.

D.A list of states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income.

Question 109 of 109