Federal Income Taxation Chapter 2 Answer the following questions below. Please p
ID: 2382749 • Letter: F
Question
Federal Income Taxation
Chapter 2
Answer the following questions below. Please provide support for your answers (does not have to be IRC citations) as partial credit may apply. In all situations below, assume that any tests not mentioned have been met.
___________________________________________________________________________________
Ben Affleck and Jennifer Garner married on June 29, 2005. In June 2015, they released a statement announcing that “after much thought and careful consideration, [they] have made the difficult decision to divorce." The divorce was not quick and as of December 31, 2015, their legal separation and divorce had not been finalized.
Ben and Jennifer have three children together: Violet (born in 2005), Seraphina (born 2009), and Samuel (born 2012). All three children lived with Ben and Jennifer in their Pacific Palisades home until Ben moved out October. The children continued to live with Jennifer for the rest of the year. The children did not provide any of their own support; Ben and Jennifer provided 100% of their support. Jennifer paid the household expenses post-October.
Violet earned $3,000 in wages from a cameo appearance in one of her father’s movies. She also earned $400 interest from a bank account.
Ben earned $20M from Gone Girl in 2015 while Jennifer earned $4M from various projects and endorsements.
Jennifer’s parents, Bill and Patricia, were both born in 1946 and despite their opposing political views, they were happily married for 48 years. In 2015, Bill earned $25,000. Sadly, Patricia passed away suddenly in November 2015. Though Bill needs bifocals, he is not legally blind.
Ben’s mother, Chris, was born in 1948. She worked as a public elementary school teacher for 30 years and in 2015, earned $3,000 from a taxable pension. Though she does not live with Ben, Ben and his brother Casey provide 40% and 30% of her support, respectively.
Are Ben and Jennifer eligible file a joint return for 2015?
What other filing status option(s) is/are available for Jennifer for 2015?
Does your answer to #2 change if Ben moved out in March instead?
Can Violet be claimed as a dependent?
Does your answer to #4 change if Violet earned $7,000 from her cameo appearance?
Can Chris be claimed as a dependent?
Is Chris required to file a tax return in 2015?
Does your answer to #6 change if Chris received $8,000 of a taxable pension?
Is Violet required to file a separate tax return in 2015?
What is Violet’s standard deduction?
Is Violet entitled to a personal exemption?
Assume Ben and Jennifer agree to file a joint return in 2015. What is their total personal and dependency exemption (use original facts in the problem and ignore any phase out rules for high income taxpayers)?
Assume Ben and Jennifer agree to file a joint return in 2015. What is their total standard deduction?
Assume Ben and Jennifer agree to file a joint return in 2015. What amount of the child tax credit can they include in their tax return?
What is Bill’s filing status in 2015?
Is a personal exemption available for Patricia in 2015?
Assume Bill has not remarried, what is filing status in 2016?
Assume Bill has not remarried, what is filing status in 2017?
If Ben and Jennifer’s divorce is finalized in 2015, what is Jennifer’s filing status?
Use the facts in #19. Assume Jennifer, the custodial parent, would receive the dependency exemption. Is it possible for Ben to claim the children as dependents? If so, how?
Explanation / Answer
1. Yes, ben and jennifer are elegible to file joint return for 2015 since their divorce not finalized till 31st dec,2015.
2. jennifer may file either joinnt return or individual return for 2015.
3. No, even if Ben moved out in march, Jennifer may still be able to file joint return or individual return.
4. Yes, violet can be claimed as dependent if child's support is provided more than half and other criterias are met.
5. Yes, the answer would be same if violet made $ 7,000 .
6. No, chris can not be claimed as dependent since she does not live with Ben and she is not provided more than half of support.
7. No, chris is not required to file the return.
8. Yes, answer would be the same.
9. Yes, violet is required to file separate tax return.
10. Violet's standard deduction higher of following-
$1000 or individual's earned income plus $350 but not more than regular standard ducuction i.e. $6,200.
11. No, violet not entitled to personal exemption.
12. The standard deduction is $12,400.
13. $ 3750 can be claimed as child tax credit.
14. Bill can file joint return.
15. No, personal exemption not available for patricia.
16. Bill's filing status is individual in 2016.
17. Bill's filing status is individual in 2017.
18. Jennifer is individual for whole year in 2015.
19. No. Ben can not claim children as dependents since they are already claimed by Jennifer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.