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CPA Tcp

CPA Tcp Quiz: Determine Filing Status And Dependency

Practice Determine Filing Status And Dependency in CPA Tcp with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

What this quiz covers

This quiz focuses on Determine Filing Status And Dependency, giving you a quick way to practice the rules, question types, and explanations that matter most for CPA Tcp.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

Paige is unmarried and lived with her fiancé all year. Paige paid more than half the cost of keeping up the home. The fiancé’s child (age 3) lived with them all year, but the fiancé (the child’s parent) claims the child as a dependent. Paige earned 67,000ofwagesand67,000 of wages and 67,000ofwagesand2,000 of interest. Under IRC §2(b) and IRS head of household rules, which filing status is most appropriate for Paige for 2025?

  1. Head of household, because Paige paid more than half the cost of keeping up the home
  2. Single, because Paige does not have a qualifying person for head of household purposes
  3. Qualifying surviving spouse, because Paige maintained a home for a child
  4. Married filing separately, because Paige lived with a partner and child
Explanation: IRC §2(b) requires a qualifying person for head of household status, which generally means a dependent for whom the taxpayer can claim an exemption or who would qualify except for certain exceptions. Since Paige's fiancé claims their child as a dependent, and the child is not related to Paige, Paige has no qualifying person for head of household purposes despite paying more than half the household costs. The correct answer is single because Paige lacks a qualifying person for head of household status. Answer A is incorrect because paying household costs alone doesn't qualify someone for head of household without a qualifying person; C is incorrect because qualifying surviving spouse requires a deceased spouse; D is incorrect because Paige is not married. The key principle is that head of household requires both maintaining a household and having a qualifying person, typically a dependent the taxpayer can claim.

Question 2

Quinn and Sage are married but lived apart for the last 7 months of 2025. Quinn paid more than half the cost of maintaining the home where Quinn lived with their child (age 7) for more than half the year, and Sage did not live in the home during the last 6 months of the year. Quinn earned 58,000andSageearned58,000 and Sage earned 58,000andSageearned40,000. Under IRC §2(b) and the IRS “considered unmarried” rules, which filing status is most appropriate for Quinn for 2025?

  1. Head of household, because Quinn is considered unmarried and maintained a household for a qualifying child
  2. Married filing jointly, because Quinn and Sage were still legally married at year-end
  3. Single, because living apart for more than 6 months makes Quinn unmarried for all purposes
  4. Married filing separately, because a married taxpayer can never qualify for head of household status
Explanation: IRC §2(b) provides that a married taxpayer can be considered unmarried for head of household purposes if they lived apart from their spouse for the last 6 months of the year, maintained a household for a qualifying child for more than half the year, and paid more than half the household costs. Quinn meets all requirements: lived apart from Sage for the last 7 months (including the entire last 6 months), maintained the home where their child lived for more than half the year, and paid more than half the costs. The correct answer is head of household because Quinn qualifies as considered unmarried and meets all other requirements. Answer B is incorrect because being considered unmarried allows head of household despite legal marriage; C is incorrect because living apart doesn't make someone single for tax purposes; D is incorrect because the considered unmarried rules specifically allow married taxpayers to use head of household. The key principle is that married taxpayers living apart can qualify for head of household if they meet the specific considered unmarried requirements.

Question 3

Jasmine is unmarried and provides support for her friend (age 30) who lived with Jasmine all year. Jasmine paid 70% of the friend’s support; the friend had 2,000oftaxablewagesand2,000 of taxable wages and 2,000oftaxablewagesand0 other income. Jasmine earned $68,000. Under IRC §152(d) and the “member of household” qualifying relative rules, who qualifies as a dependent under IRS guidelines?

  1. The friend qualifies as a qualifying relative because the friend lived with Jasmine all year, Jasmine provided more than half of support, and the friend’s gross income is below the limit
  2. The friend qualifies as a qualifying child because Jasmine provided more than half of support
  3. The friend does not qualify because a dependent must be related to the taxpayer by blood or marriage
  4. The friend does not qualify because wages are not counted in the gross income test for dependents
Explanation: IRC §152(d) allows unrelated individuals to qualify as qualifying relatives if they are members of the taxpayer's household for the entire year and meet other qualifying relative tests including the gross income and support tests. Jasmine's friend (age 30) lived with Jasmine all year, Jasmine provided 70% of support, and the friend's gross income of 2,000isbelowtheexemptionamount(approximately2,000 is below the exemption amount (approximately 2,000isbelowtheexemptionamount(approximately5,050 for 2025), meeting all requirements for a member of household qualifying relative. The correct answer recognizes that unrelated individuals can be dependents through the member of household test. Answer B is incorrect because unrelated adults cannot be qualifying children; C is incorrect because the member of household exception allows unrelated individuals; D is incorrect because wages count toward the gross income test. The principle is that anyone who lives with the taxpayer all year can potentially be a qualifying relative if they meet the support and gross income tests.

Question 4

Ethan and Zoe divorced in 2023 and have one child (age 12). In 2025 the child lived with Ethan 160 nights and with Zoe 205 nights. Ethan earned 120,000andZoeearned120,000 and Zoe earned 120,000andZoeearned55,000; Zoe did not sign any release. Under IRC §152(e) and IRS rules for children of divorced parents, which IRS rule affects the determination of filing status and dependency?

  1. The custodial parent is the parent with whom the child lived for the greater number of nights, and that parent generally claims the child absent a valid written release
  2. The parent who pays the most child support is always the custodial parent for dependency purposes
  3. The parent with higher adjusted gross income automatically claims the child if both parents are divorced
  4. A divorce decree alone automatically transfers the dependency claim to the noncustodial parent
Explanation: IRC §152(e) establishes special rules for children of divorced parents, designating the parent with whom the child lived for the greater number of nights as the custodial parent who claims the dependency exemption unless a valid Form 8332 release is executed. The child lived with Zoe for 205 nights and Ethan for 160 nights, making Zoe the custodial parent regardless of income levels or child support payments. The correct answer states the proper rule that custodial parent status is determined by counting nights and that parent generally claims the child absent a written release. Answer B is incorrect because child support payments don't determine custodial parent status; C is incorrect because income levels are irrelevant to custody determination; D is incorrect because a divorce decree alone cannot transfer dependency rights without Form 8332. The fundamental principle for divorced parents is that dependency follows physical custody as measured by nights, not financial support or income levels.

Question 5

In 2025, Jordan’s spouse died on March 2, 2025, and Jordan did not remarry during 2025. Jordan paid more than half the cost of maintaining a home for a dependent child (Jordan’s biological son, age 9) who lived with Jordan all year, and Jordan had wage income of 78,000andinterestincomeof78,000 and interest income of 78,000andinterestincomeof600. Under Internal Revenue Code (IRC) §2(a) and the IRS rules for a surviving spouse, which filing status is most appropriate for Jordan for 2025?

  1. Single, because the spouse was deceased at year-end
  2. Married filing separately, because a spouse died during the tax year
  3. Qualifying surviving spouse, because Jordan maintained a household for a qualifying child and did not remarry
  4. Head of household, because Jordan is unmarried at year-end and has a dependent
Explanation: IRC §2(a) provides that a surviving spouse may use the qualifying surviving spouse filing status for two years following the year of the spouse's death if they maintain a household for a dependent child and do not remarry. In this case, Jordan's spouse died in 2025, Jordan did not remarry, and Jordan maintained a home for a dependent child (biological son, age 9) who lived with Jordan all year. The correct answer is qualifying surviving spouse because Jordan meets all requirements: the spouse died during the tax year, Jordan has not remarried, and Jordan maintains a household as the principal place of abode for a dependent child. Single (A) is incorrect because Jordan can use a more beneficial status; married filing separately (B) is incorrect because Jordan can file a joint return for the year of death or use qualifying surviving spouse status; head of household (D) is incorrect because qualifying surviving spouse provides the same benefits as married filing jointly and takes precedence when available. The key principle is that qualifying surviving spouse status provides the same tax rates and standard deduction as married filing jointly for up to two years after a spouse's death when a dependent child is present.

Question 6

Leah is unmarried and paid all costs of maintaining a home for her son (age 18), who lived with her all year and is not a student. The son earned 9,500fromajobandusedittopayforhisowncarandpersonalexpenses;Leahpaidallhousing,food,andmedicalcosts.Leah’swageswere9,500 from a job and used it to pay for his own car and personal expenses; Leah paid all housing, food, and medical costs. Leah’s wages were 9,500fromajobandusedittopayforhisowncarandpersonalexpenses;Leahpaidallhousing,food,andmedicalcosts.Leah’swageswere60,000. Under IRC §152(c) and IRS qualifying child rules, who qualifies as a dependent under IRS guidelines?

  1. The son qualifies as Leah’s qualifying child because he is under age 19 and did not provide more than half of his own support
  2. The son does not qualify because his earned income exceeds the gross income test
  3. The son qualifies only as a qualifying relative because he is 18
  4. The son does not qualify because Leah must provide 100% of the son’s support
Explanation: IRC §152(c) establishes that a child under age 19 at year-end who lives with the parent for more than half the year qualifies as a qualifying child if they did not provide more than half of their own support. Leah's son (age 18) lived with her all year, and while he earned $9,500 and used it for personal expenses, Leah paid all housing, food, and medical costs, meaning the son did not provide more than half of his total support. The correct answer recognizes the son as a qualifying child because he meets all tests: relationship (son), age (under 19), residency (lived with Leah all year), and support (did not provide more than half of own support). Answer B is incorrect because qualifying children have no gross income limit; C is incorrect because age 18 qualifies for qualifying child status; D is incorrect because the test is whether the child provides more than half of their own support, not whether the parent provides all support. The key principle is that a child's earned income does not disqualify them as a qualifying child if they don't provide more than half of their own support.

Question 7

Noah is divorced and has two children. Child A (age 15) lived with Noah 183 nights and with the ex-spouse 182 nights; Child B (age 9) lived with the ex-spouse 250 nights and with Noah 115 nights. Noah earned 92,000;theex−spouseearned92,000; the ex-spouse earned 92,000;theex−spouseearned60,000; no written release was signed. Under IRC §152(e) and IRS residency tiebreaker rules, based on the taxpayer’s situation, which dependents can be claimed by Noah for 2025?

  1. Both Child A and Child B, because Noah’s adjusted gross income is higher
  2. Only Child A, because Noah is the custodial parent for Child A based on nights lived with each parent
  3. Only Child B, because the younger child is automatically assigned to the higher-income parent
  4. Neither child, because custody is split and no parent can claim dependents
Explanation: IRC §152(e) establishes that for divorced parents, the custodial parent is determined by counting nights the child lived with each parent, and that parent claims the child unless they sign Form 8332 releasing the claim. Child A lived with Noah 183 nights versus 182 with the ex-spouse, making Noah the custodial parent for Child A by one night; Child B lived with the ex-spouse 250 nights versus 115 with Noah, making the ex-spouse the custodial parent for Child B. The correct answer recognizes that Noah can only claim Child A based on the nights test. Answer A is incorrect because income doesn't determine custody; C is incorrect because age doesn't affect custody determination; D is incorrect because split custody allows each parent to claim the children for whom they are custodial parent. The key principle is that custody for tax purposes is determined child by child based on nights, and even one additional night determines the custodial parent.

Question 8

Casey is unmarried and supports Casey’s nephew (age 17) who lived with Casey all year; Casey also supports Casey’s mother who lived in her own apartment all year. Casey provided 60% of the mother’s support and the mother had 3,200ofSocialSecuritybenefitsand3,200 of Social Security benefits and 3,200ofSocialSecuritybenefitsand900 of tax-exempt interest (no other income). Casey’s wages were $71,000. Under IRC §152 (qualifying relative) and IRS head of household rules, based on Casey’s situation, which dependents can be claimed?

  1. Only the nephew, because a parent must live with the taxpayer to be a dependent
  2. Only the mother, because a nephew cannot be a qualifying child
  3. Both the nephew (qualifying child) and the mother (qualifying relative), assuming all other tests are met
  4. Neither, because tax-exempt interest and Social Security always disqualify a dependent
Explanation: IRC §152 defines two categories of dependents: qualifying children and qualifying relatives, with different tests applying to each category. Casey's nephew (age 17) who lived with Casey all year meets the qualifying child tests: relationship (nephew qualifies), age (under 19), residency (lived with Casey all year), and support (did not provide more than half of own support). Casey's mother meets the qualifying relative tests: relationship (parent qualifies), gross income test (Social Security benefits and tax-exempt interest totaling $4,100 are below the exemption amount), and support test (Casey provided 60% of support). The correct answer recognizes both can be claimed because each meets their respective dependency tests. Answer A is incorrect because parents need not live with the taxpayer; B is incorrect because nephews can be qualifying children; D is incorrect because neither tax-exempt interest nor Social Security benefits automatically disqualify dependency if under the gross income limit. The key principle is that different dependency rules apply to qualifying children versus qualifying relatives, and a taxpayer may claim multiple dependents if each meets the applicable tests.

Question 9

Sophia is unmarried and maintained a home for her father (who lived with her all year) and her niece (age 19), a full-time student who lived with Sophia all year. Sophia provided 60% of the father’s support; the father had 4,200oftaxableSocialSecuritybenefitsand4,200 of taxable Social Security benefits and 4,200oftaxableSocialSecuritybenefitsand700 of interest. The niece earned 8,000ofwagesbutdidnotprovidemorethanhalfofherownsupport.Sophia’swageswere8,000 of wages but did not provide more than half of her own support. Sophia’s wages were 8,000ofwagesbutdidnotprovidemorethanhalfofherownsupport.Sophia’swageswere82,000. Under IRC §152, who qualifies as a dependent under IRS guidelines?

  1. Only the father, because the niece’s wages prevent dependency
  2. Only the niece, because a parent cannot be a dependent if receiving Social Security
  3. Both the father (qualifying relative) and the niece (qualifying child), assuming all other tests are satisfied
  4. Neither, because Sophia must provide 100% of each person’s support to claim them
Explanation: IRC §152 allows taxpayers to claim multiple dependents if each meets the applicable tests, with different rules for qualifying children versus qualifying relatives. Sophia's father appears to meet qualifying relative tests with 4,900grossincome(4,900 gross income (4,900grossincome(4,200 Social Security plus 700interest)ifbelowthelimit,andSophiaprovided60700 interest) if below the limit, and Sophia provided 60% of support; the niece (age 19, full-time student) meets qualifying child tests as she lived with Sophia all year and didn't provide more than half of her own support despite earning 700interest)ifbelowthelimit,andSophiaprovided608,000. The correct answer recognizes both can be claimed if all tests are met. Answer A is incorrect because the niece's wages don't prevent qualifying child status; B is incorrect because Social Security doesn't automatically disqualify dependency; D is incorrect because the support test requires more than half, not 100%. The principle is that taxpayers can claim multiple dependents of different types when each meets their respective requirements.

Question 10

Mia is unmarried and lived with her adult son (age 27) all year. Mia paid 80% of the son’s support. The son had 6,800oftaxablewagesand6,800 of taxable wages and 6,800oftaxablewagesand200 of interest income. Mia earned $66,000. Under IRC §152(d) and the gross income test, who qualifies as a dependent under IRS guidelines?

  1. The son qualifies as a qualifying child because he lived with Mia all year
  2. The son qualifies as a qualifying relative because Mia provided more than half of support
  3. The son does not qualify as a dependent because his gross income exceeds the qualifying relative gross income limit and he is too old to be a qualifying child
  4. The son qualifies as a dependent only if Mia files as head of household
Explanation: IRC §152(d) requires qualifying relatives to have gross income below the exemption amount (approximately 5,050for2025),andadultchildrenoverage23whoarenotfull−timestudentscanonlyqualifyasqualifyingrelatives,notqualifyingchildren.Mia′sson(age27)had5,050 for 2025), and adult children over age 23 who are not full-time students can only qualify as qualifying relatives, not qualifying children. Mia's son (age 27) had 5,050for2025),andadultchildrenoverage23whoarenotfull−timestudentscanonlyqualifyasqualifyingrelatives,notqualifyingchildren.Mia′sson(age27)had7,000 in gross income (6,800wagesplus6,800 wages plus 6,800wagesplus200 interest), which exceeds the gross income limit for qualifying relatives, disqualifying him as a dependent despite Mia providing 80% of his support. The correct answer recognizes that the son cannot be a dependent due to exceeding the gross income limit and being too old for qualifying child status. Answer A is incorrect because the son exceeds the gross income limit; B is incorrect because he's too old and not a student for qualifying child status; D is incorrect because filing status doesn't determine dependency eligibility. The principle is that adult children must meet the qualifying relative gross income test to be dependents.

Question 11

Nina is legally separated under a decree of separate maintenance as of November 2025 and lived apart from her spouse for the last two months of the year. Nina’s child (age 5) lived with Nina all year, and Nina paid more than half of the cost of maintaining the home. Nina earned 52,000ofwagesand52,000 of wages and 52,000ofwagesand400 of interest income. Under IRC §2(b) and IRS rules for being considered unmarried, which filing status is most appropriate for Nina for 2025?

  1. Married filing jointly, because Nina was married for most of 2025
  2. Married filing separately, because legal separation does not affect marital status for tax purposes
  3. Head of household, because a taxpayer legally separated under a decree is treated as unmarried and maintained a home for a qualifying child
  4. Single, because Nina lived apart from her spouse for part of the year
Explanation: IRC §2(b) provides that a taxpayer legally separated under a decree of separate maintenance is considered unmarried for head of household purposes if they maintain a household for a qualifying person. Nina became legally separated under a decree in November 2025, lived apart from her spouse for the last two months, maintained a home for her child (age 5) all year, and paid more than half the household costs. The correct answer is head of household because Nina meets all requirements: considered unmarried due to legal separation decree, maintained a household as the principal place of abode for a qualifying child, and paid more than half the costs. Married filing jointly (A) and married filing separately (B) are incorrect because legal separation under a decree makes Nina considered unmarried; single (D) is incorrect because Nina qualifies for the more beneficial head of household status. The key principle is that legal separation under a court decree allows a taxpayer to be considered unmarried for head of household purposes, unlike informal separation.

Question 12

Grant is unmarried and paid 9,000towardthesupportofhismother,whileGrant’stwosiblingspaid9,000 toward the support of his mother, while Grant’s two siblings paid 9,000towardthesupportofhismother,whileGrant’stwosiblingspaid4,000 and 3,000respectively;totalsupportforthemotherwas3,000 respectively; total support for the mother was 3,000respectively;totalsupportforthemotherwas16,000. The mother’s gross income was 2,500ofinterestincome.ThesiblingshaveawrittenmultiplesupportdeclarationagreementconsistentwithIRC§152(d)(3),andthesiblingsagreeGrantwillclaimthemotherin2025.Grantearned2,500 of interest income. The siblings have a written multiple support declaration agreement consistent with IRC §152(d)(3), and the siblings agree Grant will claim the mother in 2025. Grant earned 2,500ofinterestincome.ThesiblingshaveawrittenmultiplesupportdeclarationagreementconsistentwithIRC§152(d)(3),andthesiblingsagreeGrantwillclaimthemotherin2025.Grantearned76,000. Based on the taxpayer’s situation, which dependents can be claimed?

  1. Grant may claim the mother as a qualifying relative under the multiple support agreement rules if the required declaration is properly executed
  2. Grant may not claim the mother because no one person provided more than half of her support
  3. Grant may claim the mother only if the mother lived with Grant for more than half the year
  4. Grant may not claim the mother because interest income is excluded from the gross income test
Explanation: This question tests the multiple support agreement rules under IRC §152(d)(3), which allow taxpayers to claim a qualifying relative when no single person provides more than 50% of support. Grant provided 9,000ofthemother′s9,000 of the mother's 9,000ofthemother′s16,000 total support (56.25%), while his siblings provided 4,000(254,000 (25%) and 4,000(253,000 (18.75%) respectively. Under the multiple support agreement, Grant qualifies to claim his mother because he provided more than 10% of support, the group collectively provided more than 50%, and the other contributors who provided more than 10% signed Form 2120 waiving their right to claim. Option B is incorrect because the multiple support agreement specifically addresses situations where no one person provides majority support. Option C is incorrect because the residency requirement applies to qualifying children, not qualifying relatives claimed under multiple support agreements. Option D is incorrect because while interest income is included in the gross income test, the mother's $2,500 is well below the 2025 exemption amount threshold. When multiple family members support a relative, executing a proper multiple support agreement allows the designated contributor to claim the dependency exemption, provided all other dependency tests are met.

Question 13

Avery and Blair are divorced and share custody of their son (age 10). The child lived with Avery 190 nights and with Blair 175 nights during 2025; Avery earned 48,000andBlairearned48,000 and Blair earned 48,000andBlairearned110,000. Blair pays child support and wants to claim the child as a dependent without any written release. Under IRC §152(c) and the IRS tiebreaker rules for children of divorced parents, who qualifies to claim the child as a dependent for 2025 (ignoring any Form 8332 release)?

  1. Blair, because Blair has higher adjusted gross income and pays child support
  2. Avery, because the child lived with Avery for more nights during the year
  3. Either parent may claim the child because custody is shared
  4. Neither parent may claim the child because the child did not live with one parent for the entire year
Explanation: IRC §152(c) and the tiebreaker rules for divorced parents establish that the custodial parent is determined by the number of nights the child resides with each parent during the year. The child lived with Avery for 190 nights and Blair for 175 nights, making Avery the custodial parent who has the right to claim the child absent a valid Form 8332 release. The correct answer is Avery because the custodial parent determination is based solely on nights of residence, not income levels or child support payments. Blair (A) is incorrect because higher income and paying child support do not override the nights test; either parent (C) is incorrect because the tiebreaker rules specifically designate one parent; neither parent (D) is incorrect because the child need not live with one parent the entire year. The fundamental principle for divorced parents is that custody for dependency purposes is determined by counting nights, and only the custodial parent can claim the child unless they execute a written release on Form 8332.

Question 14

In 2025, Logan is unmarried and supports Logan’s stepdaughter (age 16) who lived with Logan all year; Logan married the child’s parent in 2022. The stepdaughter had 3,000ofwagesanddidnotprovidemorethanhalfofherownsupport.Logan’swageswere3,000 of wages and did not provide more than half of her own support. Logan’s wages were 3,000ofwagesanddidnotprovidemorethanhalfofherownsupport.Logan’swageswere74,000. Under IRC §152(c) and IRS qualifying child relationship rules, who qualifies as a dependent under IRS guidelines?

  1. The stepdaughter qualifies as Logan’s qualifying child because a stepchild meets the relationship test
  2. The stepdaughter does not qualify because only biological children meet the relationship test
  3. The stepdaughter qualifies only as a qualifying relative because she is not related by blood
  4. The stepdaughter does not qualify because she had earned income
Explanation: IRC §152(c) includes stepchildren in the definition of qualifying children, with the relationship established through marriage to the child's parent and continuing even after divorce or death of the biological parent. Logan's stepdaughter (age 16) lived with Logan all year, had only $3,000 in wages, and did not provide more than half of her own support, meeting all qualifying child requirements despite being a stepchild. The correct answer recognizes that stepchildren meet the relationship test for qualifying children. Answer B is incorrect because stepchildren explicitly qualify; C is incorrect because stepchildren can be qualifying children, not just qualifying relatives; D is incorrect because earned income doesn't disqualify a qualifying child. The key principle is that the tax code treats stepchildren the same as biological children for dependency purposes once the step-relationship is established through marriage.

Question 15

Taylor and Morgan finalized their divorce on December 20, 2025. Taylor paid 14,000ofthe14,000 of the 14,000ofthe22,000 total cost of maintaining the home where Taylor lived with their daughter (age 6) all year; Morgan lived elsewhere. Taylor earned wages of 62,000andreceived62,000 and received 62,000andreceived1,200 of dividend income. Under IRC §2(b) and IRS head of household rules, which filing status is most appropriate for Taylor for 2025?

  1. Married filing jointly, because Taylor was married for most of the year
  2. Head of household, because Taylor was unmarried at year-end and paid more than half the cost of keeping up a home for a qualifying child
  3. Married filing separately, because a divorce decree was issued during the year
  4. Single, because Taylor’s divorce was finalized during 2025
Explanation: IRC §2(b) establishes that a taxpayer who is unmarried or considered unmarried at year-end may qualify for head of household status if they maintain a household for a qualifying person. Taylor's divorce was finalized on December 20, 2025, making Taylor unmarried for tax purposes at year-end, and Taylor paid more than half (14,000of14,000 of 14,000of22,000) of the cost of maintaining the home where Taylor lived with their daughter (age 6) all year. The correct answer is head of household because Taylor meets all requirements: unmarried at year-end, paid more than half the household costs, and maintained the home as the principal place of abode for a qualifying child. Married filing jointly (A) is incorrect because marital status is determined on December 31; married filing separately (C) is incorrect for the same reason; single (D) is incorrect because Taylor qualifies for the more beneficial head of household status. The critical tax planning principle is that marital status for filing purposes is determined as of December 31, and head of household provides better tax rates than single status when requirements are met.

Question 16

Owen and Priya are married and lived together all year. They supported Priya’s younger sister (age 20), a full-time student who lived with them all year and had 6,200ofwagesfromapart−timejob;OwenandPriyaprovided706,200 of wages from a part-time job; Owen and Priya provided 70% of her support. Owen earned 6,200ofwagesfromapart−timejob;OwenandPriyaprovided7095,000 and Priya earned $30,000. Under IRC §152(c) (qualifying child) and the support test, who qualifies as a dependent under IRS guidelines?

  1. The sister qualifies as a qualifying child because she is under age 24, a full-time student, lived with them, and did not provide more than half of her own support
  2. The sister qualifies only as a qualifying relative because she earned wages above $5,000
  3. The sister does not qualify because only a taxpayer’s child can be a qualifying child
  4. The sister does not qualify because a student must have zero earned income to be a dependent
Explanation: IRC §152(c) defines qualifying children to include siblings who meet the age, residency, and support tests, with special rules for full-time students under age 24. Priya's sister (age 20) is a full-time student who lived with them all year and did not provide more than half of her own support (Owen and Priya provided 70%), making her a qualifying child despite having $6,200 in wages. The correct answer recognizes that the sister meets all qualifying child tests: relationship (sibling), age (under 24 and full-time student), residency (lived with them all year), and support (did not provide more than half of own support). Answer B is incorrect because qualifying children have no gross income limit; C is incorrect because siblings can be qualifying children; D is incorrect because earned income doesn't disqualify a qualifying child. The fundamental principle is that full-time students under age 24 can be qualifying children regardless of their earned income if they don't provide more than half of their own support.

Question 17

In 2025, Chris and Dana are married and have lived apart since May 2025. Chris paid more than half the cost of maintaining the home where their child (age 4) lived with Chris for the entire year; Dana did not live in the home during the last 6 months of the year. Chris earned 49,000andDanaearned49,000 and Dana earned 49,000andDanaearned95,000. Under IRC §2(b) and IRS “considered unmarried” rules, which filing status is most appropriate for Chris for 2025?

  1. Married filing jointly, because Chris and Dana are still legally married
  2. Head of household, because Chris meets the requirements to be considered unmarried and has a qualifying child
  3. Single, because living apart makes Chris unmarried for tax filing
  4. Married filing separately, because a married taxpayer cannot be head of household in any circumstance
Explanation: IRC §2(b) allows married taxpayers to be considered unmarried for head of household purposes if they meet specific requirements including living apart from their spouse for the last 6 months of the year and maintaining a household for a qualifying child. Chris and Dana lived apart since May 2025 (more than 6 months), Chris maintained the home where their child lived all year, and Chris paid more than half the household costs, meeting all requirements to be considered unmarried. The correct answer is head of household because Chris meets the considered unmarried rules and has a qualifying child. Answer A is incorrect because Chris qualifies for a more beneficial status; C is incorrect because Chris isn't actually single; D is incorrect because the considered unmarried exception specifically allows married taxpayers to use head of household. The key principle is that the considered unmarried rules provide an exception allowing legally married taxpayers to use head of household status when living apart.

Question 18

In 2025, Elena is divorced and is the custodial parent of her son (age 11), who lived with her 260 nights. Elena signed Form 8332 releasing the dependency claim to the noncustodial parent, Marco, who earned 140,000;Elenaearned140,000; Elena earned 140,000;Elenaearned52,000 and paid more than half the cost of maintaining the home. Under IRC §152(e) and IRS rules for head of household, which filing status is most appropriate for Elena for 2025?

  1. Single, because releasing the dependency claim removes Elena’s ability to use head of household status
  2. Head of household, because Elena is the custodial parent and the child is a qualifying person for head of household even if the dependency exemption/child claim is released
  3. Married filing separately, because Form 8332 applies only to married taxpayers
  4. Qualifying surviving spouse, because Elena has a child and paid household costs
Explanation: IRC §152(e) provides that releasing the dependency claim via Form 8332 allows the noncustodial parent to claim the child tax benefits, but the custodial parent retains the right to claim head of household status based on maintaining the household for the child. Elena, as the custodial parent (child lived with her 260 nights), can still use head of household status even after signing Form 8332 because she maintained the home and the child is still her qualifying person for head of household purposes. The correct answer recognizes that Form 8332 releases only the dependency exemption and child tax credit, not head of household eligibility. Answer A is incorrect because releasing dependency doesn't affect head of household eligibility for the custodial parent; C is incorrect because Form 8332 applies to divorced parents; D is incorrect because Elena is divorced, not widowed. The key principle is that custodial parents retain certain benefits like head of household status even when releasing the dependency claim to the noncustodial parent.

Question 19

Harper is unmarried and maintained a home for Harper’s daughter (age 22), a full-time student who lived with Harper for 8 months and lived in a dorm for 4 months while attending school full-time. Harper paid more than half of the daughter’s total support; the daughter earned 12,000fromasummerjob.Harper’swageswere12,000 from a summer job. Harper’s wages were 12,000fromasummerjob.Harper’swageswere88,000. Under IRC §152(c) and IRS residency rules for temporary absences, who qualifies as a dependent under IRS guidelines?

  1. The daughter qualifies as Harper’s qualifying child because temporary absence for education counts as time lived with the taxpayer
  2. The daughter does not qualify because she did not live at home for more than 6 months
  3. The daughter qualifies only as a qualifying relative because her wages exceed the gross income limit
  4. The daughter does not qualify because a dependent must have zero earned income
Explanation: IRC §152(c) provides that temporary absences for education are disregarded when determining residency for qualifying child purposes, meaning the child is treated as living with the parent during school absences. Harper's daughter (age 22), a full-time student, lived with Harper for 8 months and in a dorm for 4 months, which counts as living with Harper all year due to the temporary absence rule, and Harper provided more than half of her support. The correct answer recognizes the daughter as a qualifying child because she meets all tests: relationship (daughter), age (under 24 and full-time student), residency (temporary absence for education counts as time with parent), and support (did not provide more than half of own support). Answer B is incorrect because temporary absences don't break residency; C is incorrect because qualifying children have no gross income limit; D is incorrect because earned income doesn't disqualify a qualifying child. The key principle is that time away at school counts as time living with the parent for qualifying child purposes.