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dutch74
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Posted: 22 Feb 2012 at 23:43 \| IP Logged

Suzie Benson is 20 and a full-time college student
throughout the year. She is single and her parents
provide over half of her support. She did make $8,000
this year in a summer job. Which of the following
statements is true?

A Because of her level of income, she cannot be taken by
her parents as a dependent.
B She must file an income tax return but is not entitled
to any personal exemption amount.
C As long as she is a full-time student, her age is not
relevant to whether her parents can take her as a
dependent.
D If she qualifies as a dependent for her parents, she
does not need to file a tax return herself.

I know its not A or C...i am stuck in between B or
D...they both seem right

striveforcpa
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Posted: 23 Feb 2012 at 10:51 \| IP Logged

The answer should definitely be choice D assuming this is
for 2011 tax year; the reason why choice B can't be an
answer is...there is the word "must".. Suzie doesn't need
to file a return since her income is less than 9,500 which
is the minimum income requirement for single taxpayers for
2011, but she might want to file a return if she had any
federal tax withheld and want to get a refund but she can't
take her personal exemption if her parents claimed her as a
dependent.

__________________
FAR 10/11 84
BEC 11/11 83
REG 02/29 88
AUD 04/20 76(God is great)

Done

momcpa
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Posted: 23 Feb 2012 at 12:00 \| IP Logged

I came across this question in Cpareviewforfree

It says B is the right answer

and the explanations is

Ms.Benson has earned income over a minimum amount and must fule an income tax return. However because she is under age 24 and a full time student for at aleast 5 months of the year, her income is not important. she can be taken as dependent by her parents who provided a majority of her support. Because she is being taken as a dependent by another party, when she files for her own, she does not get any reduction in connection with a personal exemption amount.

I have my exam tomorrow and I still have doubt on the basic things........

__________________
BEC 81
FAR 75(GOD IS GREAT)
AUD 77
REG 79

striveforcpa
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Joined: 28 Nov 2011
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Posted: 23 Feb 2012 at 12:13 \| IP Logged

minimum amount and must fule an income tax
return

But what was the minimum amount is the question? In 2011
tax year she is not required to file unless her earned
income is more than 9,500

__________________
FAR 10/11 84
BEC 11/11 83
REG 02/29 88
AUD 04/20 76(God is great)

Done

dutch74
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Joined: 24 Jun 2011
Location: United States
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Posts: 11

Posted: 23 Feb 2012 at 12:23 \| IP Logged

yea i came across it on cpareview for free...thought it was D as well... I
swear the explanation on cpareview are incomplete. I dont understand why
D cant be the correct answer considering that she is under 24 full time
student, and a qualifying child. Doesn't this rule out the income test as well?

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