Becky turned 18 years old in November 2020. She is a senior in high school. She has
Question:
• Becky turned 18 years old in November 2020. She is a senior in high school. She has a son who was born in May of 2020. She lived with Donna, her mother, all year and the baby lived with them from birth.
• Becky works part-time and made about $6,500 in 2020. She was saving the money for college, but she ended up spending it on the baby. Becky does not provide more than half of her own support.
• The baby’s father, Thomas, pays $250 per month in child support. Becky uses the money to pay for some of the baby’s expenses. Thomas and Becky were never married and do not live together.
• Donna received a Form 1099-R showing $20,000 with code 3 in Box 7. She was born in 1971. Donna also receives a widow’s pension from Social Security in the amount of $15,000. Donna’s husband died in 2015 and she has not remarried. She paid all the remaining support and all the costs of keeping up the home for Becky and the baby.
• In 2020, Donna received an Economic Impact Payment (EIP) of $1,200. Becky did not receive an EIP.
• Becky, Donna, Thomas, and the baby are all U.S. citizens with valid Social Security numbers.
Which of the following statements is true?
a. Thomas can file as Single and claim the baby as a dependent.
b. Becky can file as Single and claim the baby as a dependent.
c. Donna can file as Qualifying Widow and claim the baby as a dependent.
d. Donna can file as Head of Household and claim Becky and the baby as
dependents.
The person eligible to claim the baby as a dependent can also claim which of the following credits:
a. Earned income credit and additional child tax credit
b. Earned Income credit, additional child tax credit, and credit for the elderly and disabled
c. Additional child tax credit.
d. The baby is not a qualifying child for any of the credits
The person eligible to claim the baby as a dependent can also claim a $500 recovery
rebate credit on their 2020 tax return.
a. True
b. False
Expert Answer:
Answer 1 Option D is correct as Donna can file her return as a Head of Household Further she can cla... View the full answer
