Elroy, who is single, has taken over the care of his mother Irene in her old age.

Question:

Elroy, who is single, has taken over the care of his mother Irene in her old age. Elroy pays the bills relating to Irene’s home. He also buys all her groceries and provides the rest of her support. Irene has no gross income.

a. What is Elroy’s filing status?
b. Assume the original facts except that Elroy has taken over the care of his grandmother, Renae, instead of his mother. What is Elroy’s filing status?
c. Assume the original facts except that Elroy’s mother, Irene, lives with him and receives an annual $5,700 taxable distribution from her retirement account. Elroy still pays all the costs to maintain the household. What is his filing status?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...

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