Ken and Sarah are married and file a joint return. Sarah is an employee and received a Form W-2. Kendall is a self-employed driver for Delicious Deliveries.

Both had health insurance subsidized by Sarah's employer. They paid $3,600 pre-tax in premiums for the year.

Ken provided a statement from the food delivery service that indicated the amount of mileage driven and fees paid for the year. These fees are considered ordinary and necessary for the food delivery business:

7,200 miles driven while delivering food

Insulated box rental: $300

Vehicle safety inspection (required by Delicious Deliveries): $50

GPS device fee: $120

Kens record-keeping application shows he also drove 4,125 miles between deliveries and 4,200 miles driven between his home and his first and last delivery point of the day. Ken has a separate car for personal use. He bought and started using his second car for business on September 1, 2020.

Ken also kept receipts for the following out-of-pocket expenses:

$100 on tolls

$120 for car washes

$48 for parking tickets

$75 for Personal Protective Equipment (PPE) used during deliveries

$150 for snacks and lunches Ken consumed while working

Ken provided the Form 1099-NEC and Form 1099-K that he received from Delicious Deliveries.

Ken also received $300 in cash tips that were not reported elsewhere.

Ken won $10,000 on a scratch-off lottery ticket. He has $3,000 in losing tickets.

Sarahs brother Q moved in with them in December 2020. Hes a full-time student working on his PhD. He works part-time and earned $3,800 in 2021. Ken and Sarah pay more than half of Qs support. Q paid $5,000 in eligible educational expenses with the proceeds from a student loan. Q received a Form 1098-T from Yuma College, EIN 37-700XXXX, showing $5,000 in Box 1 and having boxes 8 and 9 checked.

Ken and Sarah received the third Economic Impact Payment (EIP 3) in the amount of $2,800 in 2021. Q received his own EIP 3 of $1,400 in 2021.

Ken, Sarah, and Q are all U.S. citizens, have valid Social Security numbers, and lived in the United States all year

Answer true or false for the following:

a. Q is Ken and Sarah's qualifying relative dependent.

b. Ken's Schedule C expenses are $6,987.

c. Ken is not eligible for a self-employed health insurance deduction.