Question
Charlotte (32) is married. However, she and her two children, Francis (3) and Cassandra (5), moved back in with her parents in 2019, after she
Charlotte (32) is married. However, she and her two children, Francis (3) and Cassandra (5), moved back in with her parents in 2019, after she separated from her husband. She will not be filing a joint return with her husband. They are all U.S. citizens and have social security numbers that are valid for employment. Charlotte's divorce had not been finalized by the end of 2021, but her husband did not live with her during the year. The children stayed with him 150 nights and the rest of the nights with Charlotte. He did not pay any of her household expenses. Since the separation, Charlotte and her children have lived in the finished basement apartment that her parents used to rent to local college students. Charlotte pays more than half the cost of maintaining the apartment, and neither of the children provided any of their own support. Her 2021 wages and AGI were $43,250 which was $4,236 higher than her 2019 earned income. Francis and Cassandra had no income. Charlotte had no other income including foreign income. She will not be releasing any dependent exemptions for which she may qualify. What is Charlotte's correct and most favorable 2021 filing status? What is Francis' dependency status for Charlotte? What is Cassandra's dependency status for Charlotte? Is Charlotte eligible to claim the Child Tax Credit and/or the Other Dependent Credit for any potential dependent? Choose the best response. Is Charlotte eligible to claim and receive the Earned Income Credit? Is Charlotte eligible to utilize the 2019 lookback provision for the Earned Income Credit?
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