Scenario 1: Donna and Becky Howard Interview Notes Becky is 25 years old and unmarried. She has two children: Seth is 7 years old 300 Kathleen was born in 2021. They all lived with Donna, Becky's mother, in 2021 Seth and Kathleen's father do not live with them, and Becky has not signed a Form while she worked. She received a statement from her childcare provider showing Becky works full-time and made $30,000 in 2021. The children attended daycare 8332 . that she paid $8,000 for the care of both children for the year. . keeping up the home for herself, Becky and Becky's children. In 2020, Donna's adjusted gross income (AGI) was higher than Becky's and Becky allowed Donna to claim Seth as a dependent. Donna received a $2,800 third Economic Impact Payment (EIP 3) in 2021. Becky received an EIP 3 of $1,400. Donna opted out of the advance payments of the Child Tax Credit. Becky did not receive any advance payments of the Child Tax Credit. Becky, Donna, Seth, and Kathleen are all ..citizens with valid Social Security numbers and lived in the United States all year. Scenario 1: Test Questions 1. Which of the following statements is true for 2021? a. Seth and Kathleen are Donna's qualifying children and Donna can claim them as dependents. b. Seth and Kathleen are Becky's qualifying children and Becky can claim them as dependents. Donna can claim the children as dependents if Becky agrees. d. Donna and Becky can each claim one child as a dependent. C a Qualified Experienced Volunteer 119 2. Which of the following statements is true? a. Donna may file as Head of Household and Becky must file as Single. b. Donna and Becky can both file as Head of Household. c. Donna and Becky must both file as Single. d. Donna must file as Single and Becky may file as Head of Household. 3. The person who can claim the children as dependents for 2021 is eligible to claim. a. Zero in child tax credit and zero in child and dependent care eligible expenses b. A child tax credit of $4,000 and can use $6,000 in child and dependent care eligible expenses C. A child tax credit of $6,600 and can use $6,000 in child and dependent care eligible expenses d. A child tax credit of $6,600 and can use $8,000 in child and dependent care eligible expenses e. A child tax credit of $7,200 and can use $8,000 in child and dependent care eligible expenses 4. Which of the following statements regarding the EIP 3/Recovery Rebate Credit is true? a. Becky is eligible to claim a $2,800 Recovery Rebate Credit for Kathleen and Seth. b. Donna must repay the $1,400 EIP 3 she received for Seth. c. Donna is eligible to claim a $1,400 Recovery Rebate Credit for Kathleen. d. Becky is not eligible to claim a Recovery Rebate Credit