Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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. No one is eligible to claim a Recovery Rebate Credit for Seth because Donna received the EIP 3 for Seth in 2021. True False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started