Questions from General Taxation

Q: What is the purpose of adjusted gross income?

What is the purpose of adjusted gross income?

Q: Distinguish the personal exemption from the dependency exemption.

Distinguish the personal exemption from the dependency exemption.

Q: Which relatives qualify for purposes of claiming a dependency exemption? Which

Which relatives qualify for purposes of claiming a dependency exemption? Which relatives do not qualify?

Q: Compare the requirements for claiming a dependency exemption for a qualifying child

Compare the requirements for claiming a dependency exemption for a qualifying child and a qualifying relative.

Q: What is the purpose of a multiple support agreement?

What is the purpose of a multiple support agreement?

Q: Explain the gross income test for the dependency deduction.

Explain the gross income test for the dependency deduction.

Q: Your client, Teresa, claimed a dependency exemption for her elderly

Your client, Teresa, claimed a dependency exemption for her elderly father. Upon audit, the IRS agent disallowed the dependency exemption. Teresa received a 30-day letter notifying her of the proposed...

Q: Explain how exemptions are phased out. Can a taxpayer lose the

Explain how exemptions are phased out. Can a taxpayer lose the benefit of all of his or her personal and dependency exemptions?

Q: Explain the difference between a tax credit and a tax deduction?

Explain the difference between a tax credit and a tax deduction?

Q: Explain the difference between a refundable and a nonrefundable credit? Provide

Explain the difference between a refundable and a nonrefundable credit? Provide examples of each.