Enrolled Agent > EA - Part 1: Individuals > Unit 3: Dependency Relationships > Flashcards

Unit 3: Dependency Relationships Flashcards

Evaluate who qualifies as a dependent under IRS guidelines to maximize allowable exemptions and credits. (33 cards)

Study These Flashcards
1
Q

What is the significance of the personal and dependency exemptions through tax year 2025?

A

They are suspended (reduced to $0) through tax year 2025.

Claiming a dependent can still make taxpayers eligible for other tax benefits such as the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the primary tests for determining if a taxpayer can claim a dependent?

A
  • Dependent taxpayer test
  • Joint return test
  • Citizenship or residency test
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does the Dependent Taxpayer Test specify?

A

A person who may be claimed as a dependent by another taxpayer may not claim anyone as a dependent on their own tax return.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the exception to the Joint Return Test?

A

It does not apply if the joint return is filed only to claim a refund, and neither spouse would have a tax liability, even if they filed separate returns.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is required under the Citizenship or Residency Test for a dependent?

A

A dependent must be a citizen or resident of the United States, Canada, or Mexico, with exceptions for foreign-born adopted children.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the two categories of dependents?

A
  • Qualifying child
  • Qualifying relative
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the five tests for a qualifying child?

A
  • Relationship Test
  • Age Test
  • Residency Test
  • Support Test
  • Tiebreaker Test
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is required under the Relationship Test for a qualifying child?

A

The child must be related to the taxpayer by blood, marriage, or adoption.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Under the Age Test, what are the age requirements for a qualifying child?

A

A qualifying child must be:

  • Under 19 at the end of the tax year, or
  • Under 24 and a full-time student, or
  • Permanently and totally disabled at any time during the year.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the Residency Test for a qualifying child?

A

A qualifying child must live with the taxpayer for more than half the tax year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does the Support Test for a qualifying child stipulate?

A

A qualifying child cannot provide more than one-half of their own support.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the tie-breaker test used for in tax dependency claims?

A

To determine which taxpayer can claim a qualifying child when more than one person is eligible.

The tie-breaker test applies when more than one taxpayer attempts to claim the same child as a dependent. The IRS uses a sequence of rules to resolve such conflicts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the four tests for a qualifying relative?

A
  • Not a qualifying child test
  • Member of household or relationship test
  • Gross income test
  • Support test
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

True or False:

A taxpayer can claim a housekeeper as a dependent if they live with the taxpayer all year.

A

False

A household employee cannot be claimed as a dependent, regardless of living arrangements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Fill in the blank:

To meet the gross income test for a qualifying relative, the dependent’s gross income must be less than ______ in 2025.

A

$5,200

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What must a taxpayer provide to claim an individual as a qualifying relative under the support test?

Study These Flashcards
A

More than one-half of the dependent’s total support during the year.

Support includes costs for necessities such as food, housing, clothing, healthcare, education, and other similar expenses.

17
Q

Can a cousin be a qualifying child for tax purposes?

Study These Flashcards
A

No

A cousin cannot be a qualifying child but can be a qualifying relative if they live with the taxpayer for the entire year and meet other tests.

18
Q

Under what condition can a child be claimed as a qualifying relative even if they are a qualifying child for another taxpayer?

Study These Flashcards
A

When the child’s parent is not required to file an income tax return and either does not file a return or only files to get a refund of income tax withheld or estimated tax paid.

19
Q

True or False:

A person can continue to claim their ex-mother-in-law as a dependent after divorce.

Study These Flashcards
A

True

Relationships established by marriage do not end due to death or divorce.

20
Q

Under what circumstances can a noncustodial parent claim a child as a dependent?

Study These Flashcards
A
  • The parents are divorced, legally separated, or lived apart during the last six months of the year.
  • The child received over half of their support from the parents.
  • The child is in the custody of one or both parents.
  • The custodial parent signs Form 8332, and the noncustodial parent attaches this to their tax return.
21
Q

True or False:

The custodial parent can revoke the release of a child’s dependency exemption using Form 8332.

Study These Flashcards
A

True

The revocation can apply starting the year after it was provided to the noncustodial parent. The custodial parent must keep a record of the revocation and evidence of delivery.

22
Q

What is a multiple support agreement?

Study These Flashcards
A

An arrangement where two or more people jointly provide for a person’s support, but no single individual pays more than half of the support.

Taxpayers use Form 2120, Multiple Support Declaration, to report such an arrangement. The taxpayer claiming the dependent must provide more than 10% of the person’s support.

23
Q

True or False:

A custodial parent can file as head of household even if they do not claim the child as a dependent.

Study These Flashcards
A

True

This is possible if the custodial parent maintained the home where the child lived for most of the year.

24
Q

What determines the custodial parent if a child lived with each parent for an equal number of nights?

Study These Flashcards
A

The custodial parent is the one with the higher adjusted gross income.

25
Who can be considered a qualifying child under the **Relationship Test**?
* Child, stepchild, or adopted child * Sibling, half-sibling, or stepsibling * Descendant of one of the above * Foster child
26
What is the primary requirement for a **foster child** to be claimed as a dependent?
The child must be legally placed in the home by the courts or a government agency. ## Footnote Payments from a child placement agency for the support of a foster child are considered support provided by the agency, not by the child.
27
What is the **sequence** of the **tie-breaker test** for claiming a qualifying child?
* By the child’s parents, if they file a joint return. * By the parent, if only one of the taxpayers is the child’s parent. * By the parent with whom the child lived the longest during the year. * By the parent with the highest AGI, if the child lived with each parent for the same length of time during the tax year. * By the taxpayer with the highest AGI, if neither of the child’s parents can claim the child as a qualifying child. * By a taxpayer with a higher AGI than either of the child’s parents who can also claim the child as a qualifying child, but does not.
28
What is the '**Not a Qualifying Child**' test?
If a child is already a qualifying child for any taxpayer, the child cannot be a qualifying relative of another taxpayer.
29
What is the 'Member of Household' or 'Relationship' test requirement?
A dependent that is not related to the taxpayer must have lived with the taxpayer the entire tax year. ## Footnote A relative who meets specific familial relationships does not have to live with the taxpayer to meet this test.
30
# Fill in the blank: A qualifying child can be claimed as a dependent if they are permanently and totally \_\_\_\_\_\_\_ at any time during the year, regardless of age.
disabled
31
What is required for a **multiple support agreement** to be valid?
* Family members together must pay more than half of the person’s total support. * No one member individually pays more than half. * The taxpayer claiming the dependent must provide more than 10% of the person’s support. * Form 2120, Multiple Support Declaration, must be used. ## Footnote Only one family member can claim a dependent in a single year, but different qualifying family members can agree to claim the dependent in other years.
32
How can a custodial parent revoke the release of **claim to exemption** for a child?
* Fill out Form 8332 and give a copy to the noncustodial parent before the end of the year. * Attach a copy of the revocation to the tax return for each year the child is claimed after the revocation. * Keep a copy of the revocation and evidence of delivery of the notice to the noncustodial parent. ## Footnote The earliest the revocation will apply is the year following the year the revocation was provided to the noncustodial parent.
33
What is **Form 8332** used for?
Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. ## Footnote This form allows the noncustodial parent to claim the child as a dependent.
EA - Part 1: Individuals
flashcards
Decks in class (19)
# Cards
Brainscape helps you reach your goals faster, through stronger study habits.
© 2026 Bold Learning Solutions. Terms and Conditions