1, Rick and Tina are married and filing jointly. Hence, they can claim one personal exemption each. Their Two children- - Both children are aged under the specified general age limit of 19 years. - Both have lived with Rick and Tina the entire year (at least more than half the year is the specified requirement) - Both children have been entirely supported by Rick and Tina (specified requirement is that the child must not have provided more than half of his or her own support for the year) - Both children are not filing any joint returns for the year. Hence, an exemption can be claimed for each child. Although Tina\'s mother has an Income of $8,000, the question has clearly stated that Rick and Tina provided more than half of the support for Tina\'s mother and she lived with them the entire year (This is a specified criteria to qualify as a dependent relative). However, she fails to pass the Gross Income Test of $4,050 since all her incomes will be added (including pension since it is taxable). Hence, she cannot qualify. Therefore, the correct answer is b)4. 2. Rubén and Jeanette’s 18 year old son qualifies as a dependent child because: - Less than 19 years of age -They have paid more than half of the support for the year - Lived with Ruben and Jeanette for the entire year (more than half the year) - The exception to the joint return test applies, since the son and his spouse file a joint return only to claim a refund of income tax withheld The son\'s wife also qualifies as a dependent because: - She is not a qualifying child - She qualifies as a relative under the Relationship Test (Relative who does not have to live with you) - Rubén and Jeanette pay more than half of her support for the year - She resides with them the entire year (more than half the year) - She passes the Gross Income Test of having an Income lower than $4,050 We assume Rubén and Jeanette are married filing jointly, and can hence avail an exemption for each person. Hence, the correct answer is d) 4 as four exemtions can be claimed. 3. Sick pay is basically any amount paid to an employee for a temporary period during which he/she is not present at work because of sickness, disability or any injuries. Sick Pay paid by the employer to the employee is taxable as per Income Tax provisions. The only exception is sick pay from a defined plan where both employer and employee contribute. In such cases, only the portion that is the after tax contribution by the employee is not added to the taxable income for the period in which such sick pay is received. In the given case, Sally receives $300 each month for sick pay from her employer for the three months she is on sick leave. Hence, the amount of $900 will be taxable. The correct answer is d) $900 4. Statement d) is FALSE. This is because: - In the year the taxpayer\'s spouse passes away, the taxpayer can use married filing jointly as their filing status, assuming all other general conditions to use this status are met. The year of .

1. 1,
Rick and Tina are married and filing jointly. Hence, they can claim one personal exemption each.
Their Two children-
- Both children are aged under the specified general age limit of 19 years.
- Both have lived with Rick and Tina the entire year (at least more than half the year is the
specified requirement)
- Both children have been entirely supported by Rick and Tina (specified requirement is that the
child must not have provided more than half of his or her own support for the year)
- Both children are not filing any joint returns for the year.
Hence, an exemption can be claimed for each child.
Although Tina's mother has an Income of $8,000, the question has clearly stated that Rick and
Tina provided more than half of the support for Tina's mother and she lived with them the entire
year (This is a specified criteria to qualify as a dependent relative). However, she fails to pass the
Gross Income Test of $4,050 since all her incomes will be added (including pension since it is
taxable). Hence, she cannot qualify.
Therefore, the correct answer is b)4.
2.
Rubén and Jeanette’s 18 year old son qualifies as a dependent child because:
- Less than 19 years of age
-They have paid more than half of the support for the year
- Lived with Ruben and Jeanette for the entire year (more than half the year)
- The exception to the joint return test applies, since the son and his spouse file a joint return only
to claim a refund of income tax withheld
The son's wife also qualifies as a dependent because:
- She is not a qualifying child
- She qualifies as a relative under the Relationship Test (Relative who does not have to live with
you)
- Rubén and Jeanette pay more than half of her support for the year
- She resides with them the entire year (more than half the year)
- She passes the Gross Income Test of having an Income lower than $4,050
We assume Rubén and Jeanette are married filing jointly, and can hence avail an exemption for
each person.
Hence, the correct answer is d) 4 as four exemtions can be claimed.
3.
Sick pay is basically any amount paid to an employee for a temporary period during which

2. he/she is not present at work because of sickness, disability or any injuries.
Sick Pay paid by the employer to the employee is taxable as per Income Tax provisions.
The only exception is sick pay from a defined plan where both employer and employee
contribute. In such cases, only the portion that is the after tax contribution by the employee is not
added to the taxable income for the period in which such sick pay is received.
In the given case, Sally receives $300 each month for sick pay from her employer for the three
months she is on sick leave. Hence, the amount of $900 will be taxable.
The correct answer is d) $900
4.
Statement d) is FALSE. This is because:
- In the year the taxpayer's spouse passes away, the taxpayer can use married filing jointly as
their filing status, assuming all other general conditions to use this status are met. The year of
death of the spouse is the last year for which the return can be filed jointly.
- The taxpayer is eligible to use "qualifying widow(er) with dependent child" as their income
tax filing status for 2 years following the year their spouse died, this means the 2 years following
the current year in which the death occured. If the death occured in 2016, this stuts can be used
for 2017 and 2018.
Solution
1,
Rick and Tina are married and filing jointly. Hence, they can claim one personal exemption each.
Their Two children-
- Both children are aged under the specified general age limit of 19 years.
- Both have lived with Rick and Tina the entire year (at least more than half the year is the
specified requirement)
- Both children have been entirely supported by Rick and Tina (specified requirement is that the
child must not have provided more than half of his or her own support for the year)
- Both children are not filing any joint returns for the year.
Hence, an exemption can be claimed for each child.
Although Tina's mother has an Income of $8,000, the question has clearly stated that Rick and
Tina provided more than half of the support for Tina's mother and she lived with them the entire
year (This is a specified criteria to qualify as a dependent relative). However, she fails to pass the
Gross Income Test of $4,050 since all her incomes will be added (including pension since it is
taxable). Hence, she cannot qualify.
Therefore, the correct answer is b)4.

3. 2.
Rubén and Jeanette’s 18 year old son qualifies as a dependent child because:
- Less than 19 years of age
-They have paid more than half of the support for the year
- Lived with Ruben and Jeanette for the entire year (more than half the year)
- The exception to the joint return test applies, since the son and his spouse file a joint return only
to claim a refund of income tax withheld
The son's wife also qualifies as a dependent because:
- She is not a qualifying child
- She qualifies as a relative under the Relationship Test (Relative who does not have to live with
you)
- Rubén and Jeanette pay more than half of her support for the year
- She resides with them the entire year (more than half the year)
- She passes the Gross Income Test of having an Income lower than $4,050
We assume Rubén and Jeanette are married filing jointly, and can hence avail an exemption for
each person.
Hence, the correct answer is d) 4 as four exemtions can be claimed.
3.
Sick pay is basically any amount paid to an employee for a temporary period during which
he/she is not present at work because of sickness, disability or any injuries.
Sick Pay paid by the employer to the employee is taxable as per Income Tax provisions.
The only exception is sick pay from a defined plan where both employer and employee
contribute. In such cases, only the portion that is the after tax contribution by the employee is not
added to the taxable income for the period in which such sick pay is received.
In the given case, Sally receives $300 each month for sick pay from her employer for the three
months she is on sick leave. Hence, the amount of $900 will be taxable.
The correct answer is d) $900
4.
Statement d) is FALSE. This is because:
- In the year the taxpayer's spouse passes away, the taxpayer can use married filing jointly as
their filing status, assuming all other general conditions to use this status are met. The year of
death of the spouse is the last year for which the return can be filed jointly.
- The taxpayer is eligible to use "qualifying widow(er) with dependent child" as their income
tax filing status for 2 years following the year their spouse died, this means the 2 years following
the current year in which the death occured. If the death occured in 2016, this stuts can be used
for 2017 and 2018.