MGMT 504 Slide Deck 3 Part 2
MGMT 504 Slide Deck 3 Part 2 MGMT 504
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This 3 page One Day of Notes was uploaded by Emily McIlhattan on Tuesday February 3, 2015. The One Day of Notes belongs to MGMT 504 at Purdue University taught by Jason Stanfield in Winter2015. Since its upload, it has received 182 views. For similar materials see Tax Accounting in Accounting at Purdue University.
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Date Created: 02/03/15
MGMT 504 Slide Deck 3 Continuing individual Income Tax Last Lecture Individual Income Tax 1 Taxation of individual I Filing Status IV Taxes and Rates Current Lecture Outline Personal and Dependency Exemptions Types of Dependents a Qualifying child i Five tests b Qualifying Relative i Five tests Current Lecture Personal and Dependency Exemptions a Every taxpayer every citizen resident and some non residents are eligible for a single exemption b When they deduct their own personal you claim yourself c If you claim yourself your parent can not claim you as their dependent i 1 per social security number or Iten Types a Qualifying Child i Five tests if you fail one then they are not a QC move on to QR 1 Age test under 19 permanently and totally disabled cant fail the age test 2 NonSupport Test a QC cant be supporting themself nothing here that says person claiming them is providing 50 or that someone else cannot be providing 50 just that they aren t year of birth year of death treated as if the person is here the entire year 3 Relationship Test does not include aunts uncles cousins only needs to be from one side exception is with foster child because the courts are involved 4 Principal Residence Test Applicable to us at Purdue 5 Citizen or Resident Test Green card Passed all 5 QC b Qualifying Relative i Five DIFFERENT test if you fail one of these you are not a dependent 1 Gross Income Test 2 Support Test by default custodial parent meets this test receiving child support a Multiple Support Agreement brothergrandpahim supporting mom when dad dies anyone can claim her because it is more than 50 of support discuss amongst themselves i Person with highest income Marginal Rate will bene t most ii Also known as the deadbeat bfgr rule they must be there the ENTIRE year kick em out 1201 0101 3 Relationship or Member of Household Test a Divorce assuming both meet dependency standards judge arbitrates who gets to but cant just say you can claim a dependent cant trump congress i EX dad can claim if dad is current on child support IRS wants nothing to do with this if custodial parent refuses to sign take it to court 4 Citizenship or Residency same as QC 5 Joint Return Test Normally dependent cant be ling a joint return if ling joint status didn t matter cant get bene ts just gets tax back Social security income is exempt if it is somebody s only income Parent always takes priority 0 If taxpayer is dependent their BSD is limited to the greater of 1000 or 350 Earned income income in wages payment for services 0 Must le if Gross Income gt BSD ASD personal exemption Three exceptions Dependent taxpayers with unearned income over 1000 Taxpayers who are Married ling separately with gross income greater than the personal exemption amount Taxpayers with selfemployment income about 400
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