Hailey is 32 years old and married to Liam. Liam passed away on February 2, 2021. Hailey has not remarried.

Hailey's nine-year-old daughter, Olivia, lived with her the entire year.

Hailey paid more than half the cost of keeping up a home and support for Olivia.

Hailey took a distribution from her traditional IRA in January to pay for her new roof.

Hailey was a full-time high school teacher and earned $45,000 in wages. Hailey purchased supplies

including masks and hand sanitizer for her class out of her own pocket totaling $450.

Hailey received a W-2G in the amount of $2,500 from the local casino.

Hailey paid child and dependent care expenses for Olivia while she worked.

Hailey and Olivia are U.S. citizens and have valid Social Security numbers. They lived in the United States for the entire year.

If Hailey is entitled to a refund, she would like to deposit half into her checking account and half into her savings account. Documents from Adelphi Bank and Trust show that the routing number for both accounts is 111000025 and her checking account number is 123456789.

25. Hailey is not required to report her gambling winnings on her return.

a. True

b. False

26. Haileys most advantageous filing status is:

a. Head of Household

b. Married Filing Jointly

c. Married Filing Separately

d. Qualifying Surviving Spouse (QSS)

27. Hailey must pay an additional 10% tax on the early distribution from her IRA.

a. True

b. False

28. Hailey qualifies for which of the following credits?

a. Child Tax Credit

b. Child and Dependent Care Credit

c. Both a and b

d. Neither a nor b

29. Hailey should use Form _________ to split her refund between her savings and checking accounts. unanswered

30. What amount can Hailey claim as an adjustment to income for the supplies she purchased out of pocket?

a. $0

b. $250

c. $300

d. $450