Category: Uncategorized

Chewie is the Wookie family’s 22-year-old daughter. She is a full-time student at an out-of-state university but plans to return home when the school year ends. During the year, Chewie earned $4,000 of income working part time. Her support totaled $30,000 for the year. Of this amount, Chewie paid $7,000 with her own funds, her parents paid $14,000, and Chewie’s grandparents paid $9,000. Which of the following statements most accurately describes whether Chewie’s parents can claim her as a dependent?

If tax rates are decreasing:

All of the following are tests for determining qualifying relative status except ________.

Anakin and Padme Skywalker have one daughter, Leia, who is 16 years old. In November of 2019, the Skywalkers took in Leia’s 16-year-old friend Phasma, who has lived with them ever since. The Skywalkers have not legally adopted Phasma but Leia often refers to Phasma as her “sister.” The Skywalkers provide all of the support for both girls, neither girl receives any income during the year, and both girls live at the Skywalkers’ residence. Which of the following statements is true regarding whom Anakin and Padme may claim as dependents for 2020?

Finn’s gross tax liability is $7,000. Finn had $2,000 of available credits and he had $4,000 of taxes withheld by his employer. What are Finn’s taxes due (or taxes refunded) with his tax return?

Which of the following statements regarding dependents is true?

Charles and Camilla got divorced in 2018. Under the terms of the decree Charles  pays Camilla $50,000 in cash in each of the next five years (or until Camilla’s death or remarriage). In addition, Charles transferred a castle worth $2,000,000 to Camilla in 2018 and will pay $12,000 per year to support their son, Harry, until he turns 19 years old. What amount (if any) is included in Camilla’s gross income in 2020?

Olsen earned $1,500 this year, and his employer withheld $200 of federal income tax from his salary. Assuming that Olsen is single, 30 years old, and will have zero tax liability this year, he:

A taxpayer instructing her son to collect rent checks for the taxpayer’s property and to report this as taxable income on the son’s tax return violates which doctrine?

Which of the following is not considered a primary authority?