Question
William (42) and Wendy (39) Johnston are married and want to file together. Their sons, Evan (17) and Larry (13), who are both high school
William (42) and Wendy (39) Johnston are married and want to file together. Their sons, Evan (17) and Larry (13), who are both high school students and single, lived with them all year. They are all U.S. citizens and have social security numbers valid for employment. William's wages were $52,495, Wendy's wages were $39,900, and they had no foreign or other income. Their 2019 earned income was less than their 2021 earned income. Evan's gross income was $6,900; Larry's was $350. Evan spent $5,000 towards his own support and saved the other $2,200. His total support paid by himself and his parents was $13,745. Larry saved all of his income. What is William's and Wendy's correct and most favorable 2021 filing status? What is Evan's dependency status for William and Wendy? What is Larry's dependency status for William and Wendy? Are William and Wendy eligible to claim the Child Tax Credit and/or the Other Dependent Credit for any potential dependent? Choose the best response. Are William and Wendy eligible to claim and receive the Earned Income Credit? Are William and Wendy eligible to utilize the 2019 lookback provision for the Earned Income Credit?
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