ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM | FREE SOLVED ANSWERS
To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is not part of the four specific tests?
To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is not part of the four specific tests?
Multiple Choice
- a. Relationship test or member of household test
- b. Age test
- c. Support test
- d. Gross income test
The correct answer is (b) Age test.
To be considered a qualifying relative for tax purposes, a person must meet certain criteria. These typically include:
- Relationship Test: The person must be related to the taxpayer in a specific way (e.g., child, parent, sibling, or certain other relatives) or live with the taxpayer for the entire year as a member of their household.
- Support Test: The taxpayer must provide more than half of the person’s total support for the year.
- Gross Income Test: The person’s gross income for the year must be less than a specific amount (which is adjusted annually).
The “Age test” is typically associated with qualifying child dependents, not qualifying relatives.
ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM FREE SOLVED ANSWERS