Scenario $9$: Hailey Simpson Directions Using the tax software, complete the tax return, including Form $1040$ and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. When entering Social Security numbers $($SSNs$)$ or Employer Identification Numbers $($EINs$),$ replace the Xs as directed, or with any four digits of your choice. Interview Notes $$ Hailey is $32$ years old and married to Liam. Liam passed away on February $2,2021.$ Hailey has not remarried. $$ Hailey's nine$-$year$-$old daughter, Olivia, lived with her the entire year. $$ Hailey paid more than half the cost of keeping up a home and support for Olivia. $$ Hailey took a distribution from her traditional IRA in January to pay for her new roof. $$ Hailey was a full$-$time high school teacher and earned $$45,000$ in wages. Hailey purchased supplies including masks and hand sanitizer for her class out of her own pocket totaling $$450.$ Hailey received a W$-2$G in the amount of $$2,500$ from the local casino. $$ Hailey paid child and dependent care expenses for Olivia while she worked. $$ Hailey and Olivia are U$.$S$.$ citizens and have valid Social Security numbers. They lived in the United States for the entire year. $$ If Hailey is entitled to a refund, she would like to deposit half into her checking account and half into her savings account. $27.$ Hailey must pay an additional $10\%$ tax on the early distribution from her IRA.

a$.$ True

b$.$ False