Marsha is 23 years old and single. She cannot be claimed as a dependent by another...

  

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Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. • Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding in tax year 2020. Marsha gave birth to Shelby on November 10, 2020. Marsha paid all the cost of keeping up a home and support for Shelby. Shelby and Marsha are U.S. citizens and have valid Social Security numbers. Marsha filed Single with no dependents on her 2019 tax return and received a $1,200 Economic Impact Payment in May 2020. Basic Scenario 2: Test Questions 3. Which of the following statements is true? a. Marsha is required to file a tax return. b. Marsha is not required to file a tax return, but should file a tax return to claim a refund of her federal income tax withholding. c. Marsha does not qualify for the earned income credit because she is under the age of 25. d. Both a and c. 4. Marsha qualifies for the recovery rebate credit of $500 for Shelby. Note: Congress may have enacted additional legislation that will affect taxpayers after this publication went to print. Please answer questions based on the information provided in Publication 4491, VITA/TCE Training Guide and Publication 4012, VITA/ TCE Resource Guide. a. True b. False Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. • Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding in tax year 2020. Marsha gave birth to Shelby on November 10, 2020. Marsha paid all the cost of keeping up a home and support for Shelby. Shelby and Marsha are U.S. citizens and have valid Social Security numbers. Marsha filed Single with no dependents on her 2019 tax return and received a $1,200 Economic Impact Payment in May 2020. Basic Scenario 2: Test Questions 3. Which of the following statements is true? a. Marsha is required to file a tax return. b. Marsha is not required to file a tax return, but should file a tax return to claim a refund of her federal income tax withholding. c. Marsha does not qualify for the earned income credit because she is under the age of 25. d. Both a and c. 4. Marsha qualifies for the recovery rebate credit of $500 for Shelby. Note: Congress may have enacted additional legislation that will affect taxpayers after this publication went to print. Please answer questions based on the information provided in Publication 4491, VITA/TCE Training Guide and Publication 4012, VITA/ TCE Resource Guide. a. True b. False

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