Greetings!
Happy Friday! This week we posted in our website the updated version of the e-books to the 2011 tax laws. Take a look here.
Third question for April. The objective is to add points to the exam score of everyone planning to take the exam. These questions about qualified child and relative are very easy to miss if you are not clear about them. Questions can be tricky! Remember, by sharing your answer to this question, you can learn something, reinforce what you already know, or simply help others to know about the topic. Anyway everyone gains something from hearing from you.Click here
In the blog, we are sharing some interesting articles from third party sources. Non-taxables income are under analysis here. Take a look
Explanations and answers to the weekly questions will be posted here, one each month. April is all about child and relatives dependents, which is a hot topic for the competency exam. So, with everyone's participation we can all sit to be tested without any doubts regarding this subject.
Stay tuned and please share this Newsletter with your colleagues and friends.
Have a wonderful week!
Norma Wahnon
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Multiple Choice Practice Question Filling status
A taxpayer's spouse dies in August of the current year. Which of the following is the taxpayer's filing status for the current year?
a. Single.
b. Qualified widow(er).
c. Head of household.
d. Married filing jointly.
Solution:
Choice "d" is correct. The joint return rates apply for two years following the death of a spouse, if the surviving spouse does not remarry and maintains a household for a dependent child. There is nothing in this question that says whether or not the surviving spouse maintains a household for a dependent child. However, since the question is asking about the current year, the surviving spouse is considered to be married (and thus able to file as married filing jointly) for the entire current year even if the spouse dies earlier in the year (in this case in August).
Choice "a" is incorrect. The filing status is not single for the current year.
Choice "b" is incorrect. The filing status is not qualified widow(er) for the current year.
Choice "c" is incorrect. The filing status is not head of household for the current year (Source: Questions and answers published by AICPA) |
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Tax term definition section |
Tax term definition
"Self-employed individual"
Self-Employed Individual - An individual in business for himself or herself, and whose business is not incorporated, is self-employed. Sole proprietors and partners are self-employed. Self-employment can include part-time work.
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