1. Terrence and Benita were married for 53 years. Terrence died on June 10, 2021. Benita has no dependents, and she did not remarry. The correct and most favorable filing status for Benita's 2021 return is:

A. Single.

B. Married filing jointly.

C. Married filing separately.

 Qualifying widow.

2. Which taxpayer(s) will be required to file a 2021 federal income tax return? None of the individuals are blind.

A. Carl (66) has gross income of $13,750. He is single and has no dependents.

B. Cassidy (34) has gross income of $18,550. She will file as head of household with one dependent.

C. Maddie (27) and Calder (25) are married and have gross income of $24,900. They lived together all year and wish to file a joint return.

D. Noel (66) and Deborah (63) have gross income of $26,950. They wish to file a joint return.

3. Which taxpayer is potentially eligible to receive the Child Tax Credit? In each scenario, the child mentioned is the taxpayer's only dependent or potential dependent, and the taxpayer provided more than half the child's support.
A. Ana has a daughter, Isabella, who was 8 years old at the end of 2021. Isabella lived in Mexico for all of 2021 and is not a U.S. citizen, U.S. national, or U.S. resident alien.

B. Mariana has a niece, Victoria, who was 10 years old at the end of 2021. Victoria is not a citizen of the United States. Victoria does have an Individual Taxpayer Identification Number (ITIN), and she lived in Mexico for all of 2021.

C. Simon has a nephew, Tristan, who is a resident alien. Tristan was 16 years old at the end of 2021. Tristan lived with Simon all year. Tristan obtained a social security number valid for employment before the due date of the return.

D. William has a son, Oliver, who was 18 years old at the end of 2021. Oliver is a citizen of the United States and qualifies as a dependent on William's 2021 tax return.

4. Choose the response that correctly completes the following sentence describing the tax treatment and reporting requirements for interest income from U.S. Treasury obligations, such as Treasury bills, notes, and bonds.
Interest income from this type of investment is:

 A. Federally taxable and must be reported on Form 1040.

 B.Nontaxable and does not have to be reported on Form 1040.

 C. Not federally taxable but should be reported on Form 1040.

 D. Not federally taxable and is only reportable on Form 1040 when the amount received exceeds $1,500.

Reference: Income Tax Course (2022)

Answer rating: 100% (QA)

1 The correct and most favorable filing status for Benitas 2021 return is C Mar... View the full answer