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Scenario 7 Using 2021 tax law, indicate: the taxpayers' correct and most favorable filing status; whether the taxpayer is eligible to claim either the
Scenario 7 Using 2021 tax law, indicate: the taxpayers' correct and most favorable filing status; whether the taxpayer is eligible to claim either the Child Tax Credit and/or the Other Dependent Credit; and whether the taxpayer is eligible to claim and receive the Earned Income Credit. Numbers in parentheses indicate age. The taxpayer is the first individual named. Chloe (41) and Charlie (49) Trujillo are married but have lived apart since April 23, 2020. They have no divorce decree or separate maintenance agreement. Chloe will not file a joint return with Charlie. Emmanuel (15), their son, has lived with Chloe since she moved out of the home. They are all U.S. citizens and have social security numbers that are valid for employment. Chloe has paid all her household expenses since the move. She did sign Form 8332, Release/Revocation of Claim to Exemption for Child by Custodial Parent so Charlie could claim Emmanuel in 2020 but will not do so in 2021. In 2021, Emmanuel continued to live with Chloe all year and did not spend any nights with his father. Charlie received the Advance Child Tax Credit in the amount of $1,500 in 2021 and did not give any money to Chloe. Together, Chloe and Charlie provided more than 50% of Emmanuel's support. Charlie's earned income was $27,000; Chloe's earned income was $26,422 in 2021 and $29,850 in 2019; Emmanuel's gross income was $0. Chloe had no foreign income or investment income. Question 36 of 81. What is Chloe's correct and most favorable 2021 filing status? O Single. O Married filing jointly. O Married filing separately. Head of household. O Qualifying widow(er). Mark for follow up Question 37 of 81. What is Emmanuel's dependency status for Chloe? Qualifying Child Dependent. Qualifying Relative Dependent. Not a dependent. Mark for follow up Question 38 of 81. Is Chloe eligible to claim the Child Tax Credit and/or the Other Dependent Credit for any potential dependent? Choose the best response. Chloe is eligible to claim the Child Tax Credit. Chloe is eligible to claim the Other Dependent Credit. Chloe is not eligible to claim the Child Tax Credit or the Other Dependent Credit. Mark for follow up Question 39 of 81. If eligible, how much of the Child Tax Credit will Chloe potentially be entitled to receive? $1,000 $1,500 O $2,250 $3,000 Mark for follow up Question 40 of 81. Is Chloe eligible to claim and receive the Earned Income Credit? Yes. No. Mark for follow up Question 41 of 81. Is Chloe eligible to utilize the 2019 lookback provision for the Earned Income Credit? Yes. O No. Mark for follow up
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