Study guide
11.2 Filing Status, Dependents, and Deductions
Uniform CPA Examination Exam
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1 Chapter 1: CPA Exam Structure and Licensure Rules
1.1 CPA Evolution Model 1.2 Eligibility, Credit Window, and Scheduling Rules 1.3 Scoring, Pass Rates, and Blueprints
2 Chapter 2: CPA Scoring, Interface, and Exam Strategy
Score Scale and Testlets MCQ/TBS Weighting by Section Sample Test Interface Tools Exam-Day Time Management
3 Chapter 3: AUD Ethics, Independence, and Engagement Acceptance
3.1 Professional Responsibilities and Independence 3.2 Engagement Acceptance and Continuance 3.3 Audit Documentation and Quality Management 3.4 Audit Risk Foundations
4 Chapter 4: AUD Risk Assessment, Controls, and Evidence
4.1 Assertions and Risk Assessment 4.2 Internal Control Design and Operating Effectiveness 4.3 Substantive Procedures and Audit Evidence 4.4 Sampling, Analytics, and Estimates
5 Chapter 21: AUD Sampling, Analytics, and Accounting Estimates
21.1 Audit Sampling Risk and Sample Design 21.2 Substantive Analytical Procedures 21.3 Estimates, Fair Value, and Specialists 21.4 Data Analytics, Exceptions, and Follow-Up
6 Chapter 22: AUD Integrated Audits, IT Controls, and SOC Reliance
22.1 ICFR Integrated Audit Framework 22.2 IT General Controls and Application Controls 22.3 Service Organizations, SOC Reports, and CUECs 22.4 Control Deficiencies and Material Weaknesses
7 Chapter 5: AUD Reporting, Attestation, and Review Engagements
5.1 Audit Opinions and Modifications 5.2 Emphasis, Other Matter, and Going Concern 5.3 Review, Compilation, and Preparation Engagements 5.4 Attestation and Government Auditing Signals
8 Chapter 36: AUD Workbook - From Risk to Report
36.1 Risk-Assertion-Procedure Drill 36.2 Evidence Reliability Drill 36.3 Control Deficiency Classification Drill 36.4 Report Modification Decision Drill
9 Chapter 6: FAR Financial Statements and Reporting Framework
6.1 Conceptual Framework and Standard Setting 6.2 Financial Statement Presentation 6.3 Cash Flow Statement and Disclosures 6.4 Not-for-Profit Reporting Basics
10 Chapter 7: FAR Balance Sheet Accounts and Rollforwards
7.1 Cash, Receivables, and Reconciliations 7.2 Inventory and Cost Flow Errors 7.3 Property, Equipment, and Intangibles 7.4 Debt, Equity, and Contingencies
11 Chapter 8: FAR Selected Transactions and Measurement Models
8.1 Revenue Recognition: Five-Step Model 8.2 Leases, Income Taxes, and Impairment 8.3 Business Combinations and Consolidations 8.4 Accounting Changes, Errors, and Subsequent Events
12 Chapter 32: FAR Revenue, Leases, and Income Taxes Deep Dive
32.1 Revenue Contract Modifications and Variable Consideration 32.2 Lease Classification and Lessee Accounting 32.3 Deferred Tax Assets, Liabilities, and Valuation Allowances 32.4 Simulation Workflows for Revenue, Lease, and Tax Exhibits
13 Chapter 31: FAR Financial Instruments, Fair Value, and Derivatives
31.1 Financial Asset Classification and Measurement 31.2 Fair Value Hierarchy and Disclosures 31.3 Derivatives, Hedge Accounting, and Embedded Features 31.4 Foreign Currency and Comprehensive Income Signals
14 Chapter 24: FAR Consolidations, Equity Method, and Intercompany Workpapers
24.1 Consolidation Decision and Noncontrolling Interest 24.2 Acquisition-Date Measurement and Goodwill 24.3 Equity Method Income, Dividends, and Impairment 24.4 Intercompany Inventory, Debt, and Fixed Asset Eliminations
15 Chapter 9: FAR Governmental Accounting and Fund Reporting
9.1 Governmental Fund Types and Basis 9.2 Government-Wide Statements and Reconciliations 9.3 Budgetary Accounting and Encumbrances 9.4 Governmental and NFP Comparison Traps
16 Chapter 23: FAR Not-for-Profit and Special Reporting Topics
23.1 Not-for-Profit Net Assets and Restrictions 23.2 Contributions, Conditional Gifts, and Agency Transactions 23.3 Functional Expenses and Statement Presentation 23.4 Interim, Segment, and EPS Reporting Traps
17 Chapter 37: FAR Workbook - Journal Entries, Rollforwards, and Reconciliations
Adjusting Entry Workflow Account Rollforward Workflow Reconciliation and Error Correction Drill Statement Presentation Workpaper Drill
18 Chapter 10: REG Tax Procedure, Ethics, and Business Law
10.1 Tax Practice Ethics and Preparer Responsibilities 10.2 IRS Procedure, Statutes, and Penalties 10.3 Contracts, Agency, and Business Entities 10.4 Secured Transactions, Bankruptcy, and Priority
19 Chapter 11: REG Individual Federal Tax Workflows
11.1 Gross Income, Exclusions, and Adjustments 11.2 Filing Status, Dependents, and Deductions 11.3 Credits, Payments, and AMT Concepts 11.4 Retirement, Passive Activity, and Loss Limitations
20 Chapter 12: REG Property Transactions and Entity Taxation
12.1 Basis, Realized Gain, Recognized Gain, and Character 12.2 C Corporations and Shareholder Transactions 12.3 S Corporations, Partnerships, and Basis 12.4 Entity Tax Simulations and K-1 Workflows
21 Chapter 25: REG Entity Choice, Basis, and Owner Tax Consequences
25.1 C Corporation, S Corporation, and Partnership Comparison 25.2 Formation Contributions and Built-In Gain 25.3 Distributions, Redemptions, and Liquidations 25.4 Loss Limits: Basis, At-Risk, and Passive Rules
22 Chapter 26: REG Property Tax, Character, and Deferral Transactions
26.1 Capital, Ordinary, and Section 1231 Character 26.2 Depreciation Recapture and Unrecaptured Gain 26.3 Like-Kind Exchanges, Involuntary Conversions, and Installment Sales 26.4 Related-Party, Wash-Sale, and Imputed-Interest Traps
23 Chapter 33: REG Trusts, Estates, Gifts, and Exempt Organizations
33.1 Trust and Estate Income Tax Basics 33.2 Gift, Estate, and Beneficiary Planning Concepts 33.3 Tax-Exempt Organizations and Unrelated Business Income 33.4 Fiduciary K-1 and Distribution Simulation Workflows
24 Chapter 38: REG Workbook - Tax Return Schedules and Basis Workpapers
38.1 Individual Return Classification Drill 38.2 Property Basis and Character Workpaper 38.3 Pass-through K-1 and Owner Basis Workpaper 38.4 Business Law Issue Spotting Drill
25 Chapter 13: BAR Business Analysis, Economics, and Forecasting
13.1 Financial Statement Analysis and Ratios 13.2 Variance, Forecasting, and Budgeting 13.3 Cost Accounting and Performance Management 13.4 Economics, Finance, and Decision Models
26 Chapter 14: BAR Technical Accounting and Advanced Reporting
14.1 Revenue, Leases, and Complex Arrangements 14.2 Derivatives, Hedges, and Fair Value 14.3 Business Combinations and Consolidations 14.4 SEC Reporting and Public Company Context
27 Chapter 15: BAR State and Local Government Analysis
15.1 Governmental Fund Analysis 15.2 Government-Wide Conversion Workflows 15.3 Budgetary Reconciliation and CAFR/ACFR Reading 15.4 Government Simulation Strategy
28 Chapter 16: ISC Information Systems and Data Management
16.1 Systems Architecture and Data Flow 16.2 ERP, Accounting Systems, and Change Management 16.3 Data Governance, SQL, and Analytics 16.4 Availability, Backup, and Recovery Controls
29 Chapter 17: ISC Security, Privacy, and SOC Engagements
17.1 Security Threats and Control Selection 17.2 Privacy, Confidentiality, and Compliance Frameworks 17.3 SOC 1, SOC 2, SOC 3, and Cybersecurity Reports 17.4 Service Organization Exceptions and User Controls
30 Chapter 18: TCP Individual Tax Planning and Personal Financial Issues
18.1 Nonroutine Individual Income and Estimated Tax 18.2 Passive, At-Risk, and Investment Planning 18.3 Retirement, Education, and Insurance Planning 18.4 Gift, Estate, and Beneficiary Concepts
31 Chapter 19: TCP Entity Compliance and Planning
19.1 C Corporation Tax Planning 19.2 S Corporation Basis and Distributions 19.3 Partnership Tax Planning and Allocations 19.4 Trusts, Tax-Exempt, and International Signals
32 Chapter 34: TCP International and Advanced Entity Tax Topics
34.1 International Tax Signals and Source of Income 34.2 CFC, Foreign Tax Credit, and Permanent Establishment Concepts 34.3 Consolidated Returns and Affiliated Corporations 34.4 Advanced Partnership and S Corp Planning Scenarios
33 Chapter 35: Choosing and Preparing for BAR, ISC, or TCP
35.1 Discipline Fit Matrix by Background 35.2 BAR, ISC, and TCP Blueprint and Skill Comparison 35.3 Discipline Study Plans and Practice Balance 35.4 Switching Disciplines, Retake, and Score Interpretation
34 Chapter 39: CPA TBS Research, Authoritative Literature, and Document Review
39.1 Document Review Simulation Method 39.2 Research and Authoritative Literature Workflow 39.3 Exhibit Overload and Relevant Data Selection 39.4 Written Explanation and Professional Judgment Drills
35 Chapter 20: CPA Simulations, Retakes, and Final Review
20.1 TBS Exhibit Triage and Workpaper Method 20.2 Section-Specific Final Review Plans 20.3 Score Release, Retake, and Credit Window Decisions 20.4 Four-Section Study Roadmaps
36 Chapter 40: Discipline Workbook Drills for BAR, ISC, and TCP
40.1 BAR Ratio, Variance, and Government Drill 40.2 ISC Control Evidence and SOC Drill 40.3 TCP Basis Planning and Entity Drill 40.4 Discipline Final Mock and Review Log
11.2 Filing Status, Dependents, and Deductions
Key Takeaways Explain This Topic AI
Filing status set on the last day of the year determines the rate schedule, standard deduction, and many credit phaseouts, and must be selected before any tax is computed.
The 2026 standard deduction is $16,100 for single, $32,200 for married filing jointly, and $24,150 for head of household; use supplied amounts on the exam rather than memorizing them.
Dependency turns on the qualifying-child tests (relationship, age, residency, support, joint-return) or qualifying-relative tests (relationship/household, gross-income, support), and a dependent is not automatically a qualifying person for head of household.
After AGI a taxpayer claims the GREATER of the standard deduction or allowable Schedule A itemized deductions; they are alternatives, never added together.
The qualified business income (QBI) deduction is a separate taxable-income deduction, not a Schedule A item and not an above-the-line adjustment.
Last updated: June 2026
Filing Status and Deductions on Form 1040
REG individual questions often begin before any tax rate is applied. The correct filing status fixes which rate schedule, standard deduction, and phaseout assumptions belong in the calculation. The 2026 blueprint expressly includes filing status, the relationships that meet the definition of a dependent, deductions from AGI, and review of Form 1040 support for taxable income.
Filing Status Sequence
Work in a disciplined order. First decide whether the taxpayer is married on the last day of the year (or a special rule treats them as unmarried). Then test the favorable statuses before defaulting to single. Head of household (HoH) turns on being considered unmarried, paying more than half the cost of keeping up a home , and having a qualifying person live there for more than half the year (a dependent parent need not live with the taxpayer).
Status What to verify Common REG trap
Married filing jointly (MFJ) Valid marriage; both spouses sign Joint and several liability follows the joint return absent innocent-spouse relief
Married filing separately (MFS) Married, not filing jointly Many credits (earned income, education, adoption) are reduced or barred
Head of household Considered unmarried, >50% home cost, qualifying person A dependent is NOT automatically a qualifying person for HoH
Qualifying surviving spouse Spouse died in one of the two prior years; dependent child Available only the two years after the year of death
Single No other status fits Never choose single before testing HoH
Dependents as a Tax Workflow
Dependency questions are fact-sorting. A qualifying child must satisfy five tests: relationship, age (under 19, or under 24 if a full-time student, or any age if permanently disabled), residency (same home more than half the year), support (the child did not provide more than half of own support), and joint-return (the child did not file a joint return except to claim a refund). A qualifying relative must satisfy relationship-or-household-member, a gross-income test (the dependent's gross income is below the indexed limit the question supplies), a support test (taxpayer provides more than half), and the not-a-qualifying-child test.
The exam uses dependents as distractors. A child can be a qualifying child of one parent under the tie-breaker rules (the parent with whom the child lived longer, then higher AGI). A person may be your dependent yet still not be the qualifying person that unlocks HoH. And claiming someone as a dependent never makes that dependent's own income disappear from their return.
Standard, Itemized, and Other Deductions
After AGI, the taxpayer claims the greater of the standard deduction or allowable Schedule A itemized deductions. For 2026 the standard deduction is $16,100 (single) , $32,200 (MFJ) , and $24,150 (HoH) , but use the figure the question gives you. Itemized categories include medical expenses (only the excess over 7.5% of AGI ), state and local taxes (capped), qualified residence interest, investment interest, charitable contributions, and casualty losses in a federally declared disaster. Personal living costs are not deductible merely because they are necessary.
The qualified business income (QBI) deduction under IRC Section 199A is different from everything on Schedule A. It is generally up to 20% of qualified business income from a pass-through (sole proprietorship, partnership, or S corporation), is not an above-the-line adjustment, and is not a Schedule A itemized deduction. It is a separate deduction subtracted in arriving at taxable income , and a taxpayer can claim both the standard deduction AND the QBI deduction in the same year.
For higher-income owners above the supplied taxable-income threshold, the deduction is the lesser of 20% of QBI or a wage-and-property limit (the greater of 50% of W-2 wages, or 25% of W-2 wages plus 2.5% of the unadjusted basis of qualified property), and a specified service trade or business (SSTB -- health, law, accounting, consulting, financial services) phases out entirely above the upper threshold. Below the threshold, none of those limits apply and the full 20% is generally available.
Watch the boundary between deduction categories. A self-employed taxpayer's health insurance premiums are an above-the-line adjustment, but unreimbursed employee medical premiums fall into the Schedule A medical category subject to the 7.5%-of-AGI floor. State income taxes are itemized (subject to the SALT cap); federal income taxes are never deductible.
Review Approach
For a simulation, build taxable income in layers:
Select filing status from the family and household facts.
Decide who is a dependent and for which benefit (credit, HoH qualifying person, or both).
Compare the standard deduction with allowable itemized deductions when amounts are supplied, and take the greater.
Apply the QBI deduction separately, after the standard-or-itemized choice.
Reconcile taxable income back to Form 1040 and Schedule A support.
This ordering prevents the classic REG mistakes: putting an HSA contribution on Schedule A, treating QBI as an itemized deduction, adding the standard and itemized deductions together, deducting federal income tax, or assuming any parent with a child automatically files as head of household. Because dependency and filing status also feed the credits worked in the next section, errors here propagate: a misclassified dependent can wrongly grant or deny a child tax credit, and the wrong filing status pulls the wrong standard deduction and the wrong rate schedule into every later computation.