Chapter 5: Additional Filing Statuses

Front 1

What filing statuses are available to taxpayers who are unmarried?

Back 1

Single, Head of Household, Qualifying Widower

Front 2

Under what circumstance would an unmarried taxpayer use the single status?

Back 2

When the taxpayer doesn’t qualify to use either of the other statuses

Front 3

How may a married taxpayer qualify as unmarried for tax purposes?

Back 3

Taxpayer must be legally separated under decree of divorce or separate maintenance
File a separate return from spouse
Provide more than ½ cost of keeping up home
Home must be main home for taxpayer and dependent child (or would be dependent)
Taxpayer’s spouse must not have lived in the home during the last six months of the year

Front 4

Why would a married taxpayer want to be considered unmarried for tax purposes?

Back 4

To qualify as head of household. Tax rates are considerably lower for HH than for MFS

Front 5

What are some of the costs of maintaining a home?

Back 5

Mortgage interest and real estate taxes (or rent), fire/casualty (or renter’s) insurance, upkeep and repairs, utilities and food consumed in the home

Front 6

Under what circumstances would you need to compute the cost of maintaining a home?

Back 6

If the taxpayer receives public assistance, the qualifying child has income available to pay part of the maintenance, or another person pays part of the cost of maintenance

Front 7

What requirements must be met for a taxpayer to use the qualifying widow(er) status?

Back 7

Death of the taxpayer’s spouse must have occurred during one of the two preceding tax years
Taxpayer must not have remarried and must have been entitled to file a joint return in year of death
Taxpayer must have paid over half the cost of maintaining a home, which for the entire year, was the main home of their dependent son, daughter, stepson or stepdaughter

Front 8

To whom do the rules for children of divorced or separated parents apply?

Back 8

Parents who:
Between them have provided more than half the child’s support for the year
At the end of the year, are one of the following:
Divorced or legally separated under a court decree of divorce or separate maintenance
Separated under a written separation agreement
Have lived apart the last six months of the year
Between them have had custody of the child for more than half the year

Front 9

Do the rules for children of divorced or separated parents apply to parents who were never married?

Back 9

Yes.

Front 10

If a couple is divorced or separated, in general, which parent gets to claim the qualifying child?

Back 10

The custodial parent

Front 11

Generally speaking, the custodial parent gets to claim the dependency exemption for a qualifying child. What is the exception to this rule?

Back 11

If a decree of divorce (etc…) that became effective after October 4, 2004 states that the noncustodial parent is entitled to claim the dependency exemption, or
If the custodial parent executes a written declaration they will not claim the child as a dependent for that year
For divorces after December 31, 2008, Form 8332 must be filed if parents are separating benefits

Front 12

What happens if an individual is a qualifying child of more than one taxpayer?

Back 12

They may decide among themselves who will claim the child

Front 13

What happens when more than one taxpayer actually claims the same qualifying child?

Back 13

The IRS applies the tie breaker rules

Front 14

What are the tie breaker rules?

Back 14

If only one of the persons is the parent, parent claims child.
If parents do not file MFJ, then Parent child lived longest during the year claims child,
If child lived same amount of time, Parent with highest AGI claims the child.
If no parent can claim, person with highest AGI claims the child.
If parent can claim child, but does not. The person with highest AGI claims, but only if that person’s AGI is greater than highest AGI of either parent who could have claimed the child.

Front 15

For the military, does domicile change with assignment of duty?

Back 15

No. Domicile is generally where you enlisted

Front 16

Does Oregon tax the military pay of nonresidents?

Back 16

No, only other Oregon source income

Front 17

What are the three requirements to be considered a nonresident for tax purposes?

Back 17

No permanent residence in Oregon during the year for self or family
Permanent residence outside of Oregon for the entire year
Less than 31 days spent in Oregon during the year

Front 18

For an Oregon resident, what is the limit of the active duty pay subtraction for military pay earned in Oregon?

Back 18

$6,000 per spouse who actively served in the military

Front 19

For an Oregon resident, what is the limit of the active-duty pay subtraction for military pay earned outside of Oregon?

Back 19

No limit. All military pay earned outside of Oregon included in federal AGI can be subtracted from Oregon income

Front 20

What special subtraction is available for National Guard serving in Oregon?

Back 20

If a member of the National Guard is required to be away from home overnight for at least three consecutive weeks, all military pay earned during that service period can be subtracted

Front 21

What special relief is provided under Title 10?

Back 21

Department of Revenue will cancel Oregon personal income tax of eligible service members who die on active duty

Front 22

Does Oregon tax the nonmilitary income earned by the spouse while in the duty station state?

Back 22

No. The spouse’s income is only subject to tax in the home state

Front 23

A service member and his wife moved to Oregon from North Carolina due to a PCS order. The wife gets a job at the local grocery store. Will the income she earns be taxable on her Oregon return?

Back 23

No. If Oregon income taxes are withheld, she will need to file a 40N to get a refund of taxes paid. The income may be taxable in North Carolina.

Front 24

Calculate the active duty pay subtraction for the Oregon return:

Bob, resident of Oregon, earned $15,000 active duty pay while stationed in Hawaii.

Back 24

$15,000

Front 25

Calculate the active duty pay subtraction for the Oregon return:

Jane, resident of Oregon, earned $8,000 active duty pay while stationed in Oregon.

Back 25

$6,000

Front 26

Calculate the active duty pay subtraction for the Oregon return:

Joe, nonresident of Oregon, earned $10,000 active duty pay while stationed in Oregon.

Back 26

$0. Not required to file an Oregon return

Front 27

Calculate the active duty pay subtraction for the Oregon return:

Mary, resident of Oregon, earned $17,000 active duty pay while stationed in North Carolina and $3,000 while stationed in Oregon.

Back 27

$20,000

Front 28

Calculate the active duty pay subtraction for the Oregon return:

Ken and Barbie, residents of Oregon - Ken earned $5,500 active duty pay while stationed in Oregon and Barbie earned $17,000 stationed in Oregon.

Back 28

$11,500