Scenario 1 tax test

Topics: Taxation in the United States, Tax, Income tax Pages: 7 (1840 words) Published: April 17, 2015
Scenario 1: Wendy Gordon
Interview Notes

Wendy is 20 years old, single, and a U.S. citizen with a valid social security number. On Wendy’s Intake and Interview sheet, she answered “Unsure” to the question, “Can anyone claim you or your spouse on their tax return?” During the interview with Wendy, you determine the following facts: Wendy was a full-time student during 2014.

Her only income was $6,400 in wages.
She lived with her parents all year, but they told her they will not claim her on their 2014 return. Wendy's parents are required to file a return. Wendy does not provide more than half of her own support.

1. Wendy can claim one personal exemption on her 2014 tax return. False
Interview Notes

Wendy is 20 years old, single, and a U.S. citizen with a valid social security number. On Wendy’s Intake and Interview sheet, she answered “Unsure” to the question, “Can anyone claim you or your spouse on their tax return?” During the interview with Wendy, you determine the following facts: Wendy was a full-time student during 2014.

Her only income was $6,400 in wages.
She lived with her parents all year, but they told her they will not claim her on their 2014 return. Wendy's parents are required to file a return. Wendy does not provide more than half of her own support.

2. Wendy has a filing requirement and must file a tax return. True
Scenario 2: Joanne Parks
Interview Notes 

Joanne is 32, unmarried, and earned $40,000 in wages.
Joanne's 67-year-old single mother, Agnes, lives in her own apartment in Seattle. Joanne provided more than half of her mother's support and all the cost of keeping up her mother's home. Agnes' only income was $6,800 in social security benefits.

None of Agnes' social security income is taxable, and she is not required to file a tax return. Joanne had employer-sponsored health insurance coverage for all of 2014. Agnes had Medicare Parts A and B coverage all year. Joanne and Agnes are U.S. citizens and have valid social security numbers. 3. Joanne’s most advantageous allowable filing status is Single. False

Interview Notes 

Joanne is 32, unmarried, and earned $40,000 in wages.
Joanne's 67-year-old single mother, Agnes, lives in her own apartment in Seattle. Joanne provided more than half of her mother's support and all the cost of keeping up her mother's home. Agnes' only income was $6,800 in social security benefits.

None of Agnes' social security income is taxable, and she is not required to file a tax return. Joanne had employer-sponsored health insurance coverage for all of 2014. Agnes had Medicare Parts A and B coverage all year. Joanne and Agnes are U.S. citizens and have valid social security numbers. 4. Who has health coverage that qualifies as minimum essential coverage? C. Both Joanne and Agnes

Scenario 3: Mike Hastings
Interview Notes 

Mike is 45 and made $19,000 in wages in 2014. He is single and pays all the cost of keeping up his home. Mike's daughter, Brittany, lived with Mike all year.
Brittany's son, Hayden, was born in November 2014. Hayden lived in Mike's home since birth. Brittany is 26, single, and had $1,700 in wages in 2014. She is not disabled. Mike provides more than half of the support for both Brittany and Hayden. Mike, Brittany, and Hayden are all U.S. citizens with valid social security numbers. 5. Can Brittany claim Hayden as a dependent?

C. No, because Brittany is a dependent of Mike.
Interview Notes 

Mike is 45 and made $19,000 in wages in 2014. He is single and pays all the cost of keeping up his home. Mike's daughter, Brittany, lived with Mike all year.
Brittany's son, Hayden, was born in November 2014. Hayden lived in Mike's home since birth. Brittany is 26, single, and had $1,700 in wages in 2014. She is not disabled. Mike provides more than half of the support for both Brittany and Hayden. Mike, Brittany, and Hayden are all U.S. citizens with valid social security numbers. 6. Mike has one qualifying child for the...
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