Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions.

The filing status of a taxpayer (e.g., single, head of household) must be identified before the applicable standard deduction is determined.

The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

The basic and additional standard deductions both are subject to an annual adjustment for inflation.

Lee, a citizen of Korea, is a resident of the U.S. Any rent income Lee receives from land he owns in Korea is not subject to the U.S. income tax.

Once they reach age 65, many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.

Claude’s deductions from AGI exceed the standard deduction allowed for 2015. Under these circumstances, Claude cannot claim the standard deduction.

Howard, age 82, dies on January 2, 2015. On Howard’s final income tax return, the full amount of the basic and additional standard deductions will be allowed even though Howard lived for only 2 days during the year.

In 2014, Ed is 66 and single. If he has itemized deductions of $7,400, he should not claim the standard deduction alternative.

Jason and Peg are married and file a joint return. Both are over 65 years of age and Jason is blind. Their standard deduction for 2014 is $16,000 ($12,400 + $1,200 + $1,200 + $1,200).

. Dan and Donna are husband and wife and file separate returns for the year. If Dan itemizes his deductions from AGI, Donna cannot claim the standard deduction.

Debby, age 18, is claimed as a dependent by her mother. During 2015, she earned $1,100 in interest income on a savings account. Debby’s standard deduction is $1,450 ($1,050 + $350).

Katrina, age 16, is claimed as a dependent by her parents. During 2014, she earned $5,600 as a checker at a grocery store. Her standard deduction is $5,950 ($5,600 earned income + $350).

When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption.

In determining whether the gross income test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?

In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?

. During 2014, Marvin had the following transactions:
 

Marvin’s AGI is:

Sylvia, age 17, is claimed by her parents as a dependent. During 2014, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Sylvia’s taxable income is:

Tony, age 15, is claimed as a dependent by his grandmother. During 2014, Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $700. Tony’s taxable income is:

Wilma, age 70 and single, is claimed as a dependent on her daughter’s tax return. During 2014, she had interest income of $2,500 and $800 of earned income from babysitting. Wilma’s taxable income is:

Kyle and Liza are married and under 65 years of age. During 2014, they furnish more than half of the support of their 19-year old daughter, May, who lives with them. She graduated from high school in May 2013. May earns $15,000 from a part-time job, most of which she sets aside for future college expenses. Kyle and Liza also provide more than half of the support of Kyle’s cousin who lives with them. Liza’s father, who died on January 3, 2014, at age 90, has for many years qualified as their dependent. How many personal and dependency exemptions should Kyle and Liza claim?

Ellen, age 12, lives in the same household with her father, grandfather, and uncle. The cost of maintaining the household is provided by her grandfather (40%) and her uncle (60%). Disregarding tie-breaker rules, Ellen is a qualifying child as to:

Which of the following characteristics correctly describes the procedure for the phaseout of exemptions?

Which of the following taxpayers may file as a head of household in 2014?

Ron provides all the support for his mother, Betty, who lives by herself in an apartment in Fort Lauderdale. Ron pays the rent and other expenses for the apartment and properly claims his mother as a dependent.

Tammy provides over one-half the support for her 18-year old brother, Dan. Dan earned $4,200 in 2014 working at a fast food restaurant and is saving his money to attend college in 2015. Dan lives in Tammy’s home.

Joe’s wife left him late in December of 2013. No legal action was taken and Joe has not heard from her in 2014. Joe supported his 6-year-old son, who lived with him throughout 2014.

Nelda is married to Chad, who abandoned her in early June of 2014. She has not seen or communicated with him since then. She maintains a household in which she and her two dependent children live. Which of the following statements about Nelda’s filing status in 2014 is correct?

In which, if any, of the following situations will the kiddie tax not apply?