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Filing Status, Dependency Exemptions, and Child Credit

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Filing Status, Dependency Exemptions, and Child Credit. For the following taxpayers, indicate which tax form should be used, the applicable filing status, and the number of personal and dependency exemptions available, and the number of children who qualify for the child credit.

a. Arnie is a single college student who earned $7,700 working part-time. He had $200 of interest income and received $1,000 of support from his parents.

b. Buddy is a single college student who earned $7,700 working part-time. He had
$1,600 of interest income and received $1,000 of support from his parents.

c. Cindy is divorced and received $6,000 of alimony from her former husband and
earned $12,000 working as a secretary. She also received $1,800 of child support for her son who lives with her. According to a written agreement, her former husband is entitled to receive the dependency exemption.

d. Debbie is a widow, age 68, who receives a pension of $8,000, nontaxable social security benefits of $8,000, and interest of $4,000. She has no dependents.

e. Edith is married, but her husband left her two years ago and she has not seen him since. Edith supported herself and her daughter, age 6. She paid all household expenses. Her income of $16,000 consisted of a salary of $15,200 and interest of $800.

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Solution Preview

Hope this is of help and thorough enough.

Madison

a. Arnie is a single college student who earned $7,700 working part-time. He had $200 of interest income and received $1,000 of support from his parents.

1040EZ - Income from parents should be added to his income of $7,700. He should file as single with one personal exemption for himself.

b. Buddy is a single college student who earned $7,700 working part-time. He had
$1,600 of interest income and received $1,000 of support from his parents.

1040 A with a Schedule B because his interest income exceeded $1,500. Income from parents should be added to his income of $7,700. He is a single filer with one personal exemption for himself.

c. Cindy is divorced and received $6,000 of alimony from her former husband ...

Solution Summary

Filing status, dependency exemptions, and child credit are discussed.

$2.19
See Also This Related BrainMass Solution

This file contains information regarding current tax regulations involving dependents.

I am working on a problem with married couple, Donna and Paul Decker who file a joint tax return. The wife is the custodial parent of two children, ages, 17 and 18, that reside with the married couple during the 9 month school year and then with the father, Bob, 3 months during the summer. Bob pays child support of $150 per month per child during the 9 months that they live with the mom and her husband. Bob spends $200 per month per child during the 3 months that they reside with him. Donna and Paul can document that they provide $2000 support per child per year. The divorce decree is silent as to which parent can claim the exemption for the children.

So do they get to file the kids as dependants? Also what happens with the child support, is it just 9 x $(150x2)= $2700....the Deckers spend more...I am wondering if there is anything else I need to know about how this situation will affect the tax return and what I need to put where.

The only additional information is provided about the children is that the Deckers paid $380 for the Daughter's medical bills and $850 for both children in doctor and hospital bills.

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