Please go to this website (https://www.irs.gov/pub/irs-pdf/f6744.pdf) for more information for basic scenario 8

Basic Scenario 8: Valerie Sinclair

Valeries husband, Donald, died in March 2013. She has not remarried. She has two sons, Ethan and Patrick, and one daughter, Annie, who lived with her all year

. Valerie paid more than half of the support for Annie and Patrick and all of the cost of keeping up the home.

Her son, Ethan, graduated from college two years ago. He is working and earned wages of $30,000. He provides more than half of his own support.

Valerie is paying off a student loan that she took out for her son Ethans qualified education expenses at an eligible institution. He was her dependent when she took out the loan.

Valerie is a seasonal employee and was laid off in December. She received unemployment income.

She cashed in her 401(k) savings and used the money for household expenses. She does not qualify for any exception to the additional tax on early distributions.

Her son, Patrick, attended after-school care while Valerie worked.

The volunteer is not sure if Valerie had qualified health insurance from her employer all year since she was laid off in December. Valerie mentions that her employer confirmed that she and her children, Annie and Patrick, had health insurance coverage all year. Ethan had MEC all year through his employer

20. Who are Valeries qualifying persons for Head of Household filing status?

a. Annie, Patrick, and Ethan

b. Patrick and Ethan

c. Annie and Ethan

d. Annie and Patrick

21. Ethan is Valeries qualifying child for which of the following benefits?

a. Exemption for a dependent

b. Child tax credit

c. Earned income credit

d. None of the above

22. What is the total federal income tax withholding for Valeries tax return? $________.

23. What is Valeries credit for child and dependent care expenses shown on her Form 1040, page 2?

a. $396

b. $414

c. $432

d. $450

24. Valerie cannot claim the $700 of student loan interest as an adjustment on page 1 of Form 1040, because the loan was for Ethans education. a. True b. False

25. What is the amount of additional tax on the distribution from Valeries 401(k), shown in the Other Taxes section of Form 1040?

a. $0

b. $130

c. $180

d. $450