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H&R Block Ch 5 Extra Exercises

Determine filing status & exemptions:
Raggedy Ann and Andy filed jointly in past years. Andy died in Oct 2009. Ann is supporting their children, Carl (16) and Karen (12). Ann has not remarried. Combined wages were $35,450

MFJ, 4, EIC

Determine filing status & exemptions:
Donny Osmond (54) is unmarried and lives with his unmarried sister Marie (49), who earned $3,051. Donny paid all the household expenses and over 50% of Marie's support because she was injured and unable to work part of the year. Donny's wages were $12,652.

HH, 2, No EIC
Marie fails AGE test for EIC and she's not permanently disabled.

Determine filing status & exemptions:
Ward and June Cleaver, husband and wife, have two children: Beaver (16) a high school student, and Wally (22). Wally was a full-time student from January through August; he completed requirements for a B.S. in Business in August and spent the next four months touring Europe (the trip was a gift from his father). Ward and June provided over one-half of the total support for both Wally and the Beaver. Ward also provided total support for his father, Robert (73) who is confined to a nursing home and had no income. Combined wages for Ward and June were $50,000. Wally's wages were $4,000.

MFJ, 5, No EIC
They fail the INCOME test for EIC ($48,279 MFJ)

Determine filing status & exemptions:
Cher is unmarried and maintains her home for herself and her son Chaz (18) who lived with her until she moved out in October 2009. Cher provides over 50% of Chaz's support. In 2007, Cher filed a joint return. Her husband, Sonny, died November 5, 2007. Cher's wages were $28,000 and her bank interest was $2,850. Chaz's wages were $2,500.

HH, 2, EIC
Chaz fails the RESIDENCY test for QW.

Determine filing status & exemptions:
Batman (44) is unmarried and provided $10,400 toward the support of his widowed mother, Batmom, during the year. This amount includes the total cost of the nursing home in which his mother lives. His mother paid the remaining $7,800 of her own support from her social security benefits. Her only other income was taxable interest of $2700, which she used to buy clothes. Batman's wages were $35,000.

S, 1, No EIC
Batmom fails SUPPORT test for QR.
Batman fails INCOME test for EIC ($13,440 S)

Determine filing status & exemptions:
Colonel Mustard is unmarried. His wife, Gulden, died six years ago. He maintains a home for himself and his two children; Maureen (25) worked all year and earned $16,500 as a dental assistant -- Jill (14) attended Junior HS all year. He deposited Jill's social security benefits in her savings account. Maureen spent $7,800 of her wages on clothing and recreation and saved the rest to purchase a car. Except for the money Maureen spent on herself, he provided the total support for his family. Colonel Mustard's wages were $39,450.

HH, 2, No EIC
Maureen fails DEPENDENCY test.
Colonel fails INCOME test for EIC ($35,463)

Determine filing status & exemptions:
Scott Peterson has not heard from his wife since she left him in July 2009. He does not know where she is located. Scott provides the entire support for his five minor children. The children lived with Scott during the entire year. He has not obtained a divorce or decree of separation maintenance. Scott's wages were $41,000.

MFS, 6, No EIC
Fails Filing Status (MFS) for EIC
Fails RESIDENCY test for HH (last 6 mos)

Determine filing status & exemptions:
Stephanie (22) is unmarried and a full-time student from June through December. Stephanie worked part time but didn't provide more than 50% support for herself or her daughter, DJ (3). Stephanie and DJ lived with Stephanie's father, Dan (45) all of 2009. Stephanie's wages were $3,900 and Dan's wages were $39,870.

S, 0, No EIC
Stephanie fails the AGE test for EIC with no children.
Dan can claim 2 exemptions for Stephanie & DJ

Determine filing status & exemptions:
Dan Tanner's newly married daughter, Michelle (20) is a full-time student and lived with Dan the entire year. Michelle is filing jointly with her new husband, Jessie (22), of 2 months. Jessie and Michelle have $5,075 gross income. Dan's wages were $45,000.

HH, 2, No EIC
Dan fails the INCOME test.

Determine filing status & exemptions:
Ken (42) shared his home with his friend, Barbie (42) and Barbie's son, Jerry (13), the entire year. Jerry is not Ken's son but he cares for him as if he were. Together with Barbie, Ken treated Jerry as his own child. Ken provided more than 50% support for Barbie and Jerry, and Ken provided more than 50% the cost of maintaining the home. Ken's wages were $24,000 and Barbie's wages were $3,095.

S, 3, No EIC
Barbie & Jerry are QRs
Barbie's Std deduction = $3,395 (3095+300)

Determine filing status & exemptions:
Barbie (42) is Ken's girlfriend. She is unmarried and has another child, Skipper (21) who lived with her and Ken all year. Skipper's wages were $30,100. Barbie's wages were $3,095.

S, 0, +EIC

Determine filing status & exemptions:
Harriett (48) is Ricky (21) and David's (16) mother. Harriett is unmarried and paid more than 50% of the cost of maintaining her home. Ricky was a full-time student from January through August and worked part time afterwards. David lived with his mother the entire year. Harriett's income was $42,000. Ricky's wages were $2,000 and David's wages were $250 and $10 interest.

HH, 3, No EIC
Ricky's STD is $2,300 (2000+300)
David's STD is $950
Harriet fails the INCOME test for EIC.

Determine filing status & exemptions:
Fred Flintstone's wife, Wilma, died on February 6, 2006. Fred has a dependent daughter, Pebbles (12), who lived with him all year in a home Fred maintained. Fred has not remarried. Fred's wages were $54,500.

HH, 2, No EIC

Determine filing status & exemptions:
Herman Munster (35) is married and lived apart from his wife, Lilly (34), for the last 9 months of 2009. They have no decree of divorce or separate maintenance. Lilly does not want to file a joint return with Herman. Their son, Junior (12) lived with Lilly the entire year. Lilly has waived her right to Junior's exemption for 2009 by signing Form 8332. Herman and Lilly together provided more than 50% of Junior's support. Herman's wages were $25,000; Lilly's wages were $18,000; Junior's gross income was $0.

MFS, 2, No EIC

Determine filing status & exemptions:
Lilly Munster (34) is married and lived apart from her husband, Herman (35), for the last 9 months of 2009. They have no decree of divorce or separate maintenance. Lilly does not want to file a joint return with Herman. Their son, Junior (12) lived with Lilly the entire year. Lilly has waived her right to Junior's exemption for 2009 by signing Form 8332. Herman and Lilly together provided more than 50% of Junior's support. Lilly's wages were $18,000; Junior's gross income was $0.

HH, 1, +EIC

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