Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human And Social Audit

Authors: N P Agarwal

1st Edition

8176113980, 978-8176113984

More Books

Students also viewed these Accounting questions