Question
Elizabeth (27) is unmarried. Her younger sister, Seraphina (21) lived with her all year. Both have social security numbers that are valid for employment. Seraphina
Elizabeth (27) is unmarried. Her younger sister, Seraphina (21) lived with her all year. Both have social security numbers that are valid for employment. Seraphina is not a student. Elizabeth paid all of her own support and the household expenses. She paid 78% of Seraphina's support and Seraphina paid for the balance of her support. Seraphina is not permanently and totally disabled. Elizabeth's 2021 earned income and AGI were $27,852 and her 2019 earned income was $24,393. Elizabeth did not have any foreign income or investment income. Seraphina's gross income was $3,793. Everyone listed is a U.S. citizen.
a- What is Elizabeth's correct and most favorable 2021 filing status?
b-What is Seraphina's dependency status for Elizabeth?
c-Is Elizabeth eligible to claim the Child Tax Credit and/or the Other Dependent Credit for any potential dependent? Choose the best response.
d-Is Elizabeth eligible for the Earned Income Credit?
e- is Elizabeth eligible to utilize the 2019 lookback provision for the Earned Income Credit
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