Harris and Carly Franklin are married and choose to file Married Filing Jointly on their 2020 tax return. Harris and Carly have one son Billy and a newborn baby Cristina born in 2020. Carly was a kindergarten teacher at a private school through May and decided not to return after the birth of her child. Carly worked a total of 800 hours in 2020 (January - May). She spent $375 on unreimbursed classroom expenses while she was employed. In order to work, the Franklins paid child care expenses of $1,500 through May for Billy. They also paid $750 in child care expenses for Cristina while Carly volunteered in Billys class in November. The Franklins paid $3,960 in student loan interest in 2020. In August of 2020, Harris enrolled in college to pursue a bachelors degree in Accounting. He provided Form 1098-T and an account statement from the college that included additional expenses. Harris had no previous post-secondary education. Gordon College is a qualified educational institution. Harris does not have a felony drug conviction. The Franklins received a $2,900 Economic Impact Payment (EIP) in 2020. Harris purchased insurance for the entire family through the Marketplace and received Form 1095-A. They are all U.S. citizens with valid Social Security numbers.

How do educator expenses affect Carlys tax return? a. Carly can claim these expenses as a miscellaneous itemized deduction on her Schedule A. b. These expenses cannot be claimed on her 2020 tax return because she does not meet the requirements to claim the educator expenses. c. $250 is deducted as an adjustment to income on Form 1040, Schedule 1. d. Carly is entitled to deduct the full $375 as an adjustment to income on Form 1040, Schedule 1.

Do the Franklins qualify for the earned income credit? a. Yes, they meet all the qualifications to receive the credit. b. No, their income is too high.