Mary is 30 years old and married to Mark, age 36. Mark passed away on January 30, 2021. 

• Mark was unemployed and had no income in 2021 due to his illness. 

• Mary’s seven-year-old daughter, Jenny, lived with her the entire year. 

• Mary paid more than half the cost of keeping up a home and support for Mark and Jenny. 

• Mary received a distribution from her traditional IRA in January to pay for living expenses. 

• Mary was a full-time high school teacher and earned $35,000 in wages. Mary purchased supplies for her class out of her own pocket totaling $320. 

• Mary received a W-2G in the amount of $8,200 from the local casino. 

• Mary paid child and dependent care expenses for Jenny while she worked. 

• Mary elected not to receive advance child tax credit payments. 

• Mary and Mark received a $4,200 Economic Impact Payment (EIP3) in 2021. 

• Mary, Mark, and Jenny were not medically or financially affected by the COVID-19 pandemic. 

• Mary, Mark, and Jenny are U.S. citizens and have valid Social Security numbers. They all lived in the United States for the entire year. 

• If Mary is entitled to a refund, she would like to deposit half into her checking account and half into her savings account.

1. Mary’s gambling winnings do not have to be reported on her return. 

a. True 

b. False

2. Mary’s most advantageous filing status is: 

a. Head of Household 

b. Married Filing Jointly 

c. Married Filing Separately 

d. Qualifying Widow(er)

3. Mary is subject to the additional 10% tax on early distributions. 

a. True 

b. False

4. Mary qualifies for which of the following credits? 

a. Child Tax Credit and Earned Income Tax Credit 

b. Child and Dependent Care Credit 

c. Retirement Savings Contribution Credit 

d. Both a and b

5. Mary wants to split the refund between her savings and checking accounts. How is this accomplished, if possible? 

a. Splitting a refund is not possible. 

b. Mary does not have an overpayment on her return. 

c. This can only be accomplished if filing a paper return. 

d. Complete Form 8888, Allocation of Refund (Including Savings Bond Purchases).

6. What amount can Mary claim as an adjustment for the supplies she purchased out of pocket? 

a. $0 

b. $250 

c. $300 

d. $320