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2021 Qualified Experienced Volunteer (QEV) Exam - QEV Scenario 1: Donna and Becky Howard - Question 4 of 4. Interview Notes Becky is 25

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2021 Qualified Experienced Volunteer (QEV) Exam - QEV Scenario 1: Donna and Becky Howard - Question 4 of 4. Interview Notes Becky is 25 years old and unmarried. She has two children: Seth is 7 years old and Kathleen was born in 2021. They all lived with Donna, Becky's mother, in 2021. Seth and Kathleen's father do not live with them, and Becky has not signed a Form 8332. Becky works full-time and made $30,000 in 2021. The children attended daycare while she worked. She received a statement from her childcare provider showing that she paid $8,000 for the care of both children for the year. Donna is unmarried and earned $25,000 in 2021. Donna paid over half the costs of keeping up the home for herself, Becky and Becky's children. In 2020, Donna's adjusted gross income (AGI) was higher than Becky's and Becky allowed Donna to claim Seth as a dependent. Donna received a $2,800 third Economic Impact Payment (EIP 3) in 2021. Becky received an EIP 3 of $1,400. Donna opted out of the advance payments of the Child Tax Credit. Becky did not receive any advance payments of the Child Tax Credit. Becky, Donna, Seth, and Kathleen are all U.S. citizens with valid Social Security numbers and lived in the United States all year. 4. Which of the following statements regarding the EIP 3/Recovery Rebate Credit is true? *A. Becky is eligible to claim a $2,800 Recovery Rebate Credit for Kathleen and Seth. OB. Donna must repay the $1,400 EIP 3 she received for Seth. OC. Donna is eligible to claim a $1,400 Recovery Rebate Credit for Kathleen. OD. Becky is not eligible to claim a Recovery Rebate Credit.

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