Question

Cindy, age 63, who is single has a son Mark, age 43, who lived with her all year and she provided all of his support. No one else lived in the home. Mark does not work and he is not disabled. He has $3,900 of unemployment compensation and no other income Marks: 1 Choose one answer o o b Cindy can file as head of household because Mark is a qualifying person but she cannot claim Mark as a dependent Cindy cannot dam Mark as a dependent and she cannot file as head of household Cindy can daim Mark as a dependent but she cannot file as head of household Cindy can claim Mark as a dependent and she can file as head of household o d James received a 2018 Form 1099-G with S600 in box 2 and 2017 in box 3 Which of the following is not true about this income? Marks: 1 Choose one answer o b a. Some of it may be tacable if he homized his deductions in 2017, including a deduction for state income taxes None of it is taxable if he did not itemize in 2017 Wany amount is taxable, it is to be reported on line 10 of Schedule 1 the itemizes in 2018, reduce the deduction for state taxes by 5600 O d

Answer 1

57) Solution: Cindy cannot clai Mark as a dependent and she cannot file as a dependent

Explanation: To claim as head of household, the taxpayer must pay for more than half of the household expenses; unmarried for the tax year; and should have a qualifying child or dependent

58) Solution: Some of it may be taxable if he itemized his deductions in 2017, including a deduction for state income taxes

Explanation: The local or state income tax refund would be taxable income only when claimed as itemized deduction for such taxes on the income tax return in the year it would be reporting on