Which of the following statements is true? [Find answer in Chapter 8] A. The EITC claimant's investment income can't exceed the inflation-adjusted amount of $11,600. B. MFS filers who had a qualifying child live with them for more than half of the year and are legally separated from their spouse under state law may claim the EITC. C. Parents with SSNs can claim the EITC even if their children don't have SSNs (but the claimants would be limited to the smaller credit available to childless workers). OD. All of the statements above are true.

4. Corbett's AMTI is $600,000. What is his AMT exemption under the following alternative circumstances? a. He is married and files a joint return. b. He is married and files a separate return. c. Amt exemption = d. His filing status is single. e. His filing status is head of household.

If Bailey, who files single, qualifies for the real estate rental exception, the maximum deduction is reduced if his AGI exceeds the threshold. The reduction is equal to of AGI in excess of $fill in the blank 8. The deduction will be phased out completely if AGI reaches $fill in the blank 9.

Lanny and Shirley divorced in 2018 and do not live together. Shirley has custody of their child, Art, and Lanny pays Shirley $23,000 per year. All property was divided equally.

Assume Darrin transfers ownership of the life insurance policy on his life to an Irrevocable Life Insurance Trust (ILIT) and retains the right to borrow against the policy. Assume Darrin dies five years later. Which of the following is correct regarding the treatment of the proceeds of the life insurance policy? O The proceeds will always be included in Darrin's federal gross estate. The proceeds will be included in Darrin's federal gross estate if he has any outstanding loans against the life insurance policy. O The proceeds will be included in Darrin's federal gross estate if Darrin continued paying the policy premiums after the life insurance policy was transferred to the ILIT. O The proceeds will never be included in Darrin's federal gross estate.

Kk.215.

Which statement describes a technique used to address the issue of ensuring the payment of adequate child support by a noncustodial parent when the parents of minor children are divorced?   A) A provision in the noncustodial parent's will leaving property to the minor will solve this concern.     B) To ensure that child support payments are continued if the noncustodial parent dies or becomes disabled before such payments are to cease, the parents must enter into a nuptial agreement.     C) An irrevocable trust established and funded by the noncustodial parent to ensure payment of child support can be a valuable tool to protect such assets from the claims of future creditors of the noncustodial parent.     D) Insurance on the life of the noncustodial parent must be owned by an irrevocable life insurance trust to prevent the noncustodial parent from changing the beneficiary.

Under what circumstances, if any, can a married person file as a head of household? A. A married person, if otherwise qualified, can claim head of household status only in the first year that he or she can be classified as a surviving spouse. The taxpayer must maintain a household for at least nine months of the year. OB. A married person, if otherwise qualified, can claim head of household status if he or she is married to a nonresident alien or if he or she qualifies as an abandoned spouse. To be an abandoned spouse, the person must have lived apart from his or spouse for the last six months of the year and maintain a household for a qualifying child in which they both live. OC. A married person, cannot claim head of household status, this status is only for single taxpayer that maintain a household for a qualifying child in which they both live. O D. A married person, if otherwise qualified, can claim head of household status only if he or she qualifies as an abandoned spouse. To be…

In which of the following situations will the divorced custodial parent be entitled to the dependency exemption for the child? a, The noncustodial parent provides $1,500 of support for the child and the custodial parent provides $1,200.   b, The custodial and noncustodial parent both provide $1,500 of support for the child.   c, The custodial parent provides $1,500 of support for the child and the noncustodial parent provides $1,200.   d, All of the above.

Question 48 of 75. Which of these is a requirement for claiming the California Joint Custody Head of Household Credit?1. A verbal custody agreement between the parents.2. The home must be the home of the taxpayer's child, stepchild, or grandchild for at least half of the tax year.3. The taxpayer must be separated or divorced for at least six months. 4. The taxpayer must file as single or married/RDP filing separately.