1 Who are Valeries qualifying persons for Head of Household

1. Who are Valerie\'s qualifying persons for Head of Household filing status?

A. Annie, Patrick, and Ethan

B. Patrick and Ethan (this choice is wrong)

C. Annie and Ethan

D. Annie and Patrick

2. Ethan is Valerie’s qualifying child for which of the following benefits?

A. Exemption for a dependen

B. Child tax credit

C. Earned income credit

D. None of the above

Valerie\'s husband, Donald, died in March 2013. She has not remarried. She has two sons, Ethan and Patrick, and one daughter, Annie, who lived with her all year Valerie paid more than half of the support for Annie and Patrick and all of the cost of keeping up the home. Her son, Ethan, graduated from college two years ago. He is working and earned wages of $30,000. He provides more than half of his own support. Valerie is paying off a student loan that she took out for her son Ethan\'s qualified education expenses at an eligible institution. He was her dependent when she took out the loan. Valerie is a seasonal emplovee and was laid off in December. She received unem ployment income. She cashed in her 401(k) savings and used the money for household expenses. She does not qualify for any exception to the additional tax on early distributions Her son, Patrick, attended after-school care while Valerie worked. The volunteer is not sure if Valerie had qualified health insurance from her employer all year since she was laid off in December. Valerie mentions that her employer confirmed that she and her children, Annie and Patrick, had health insurance cover- age all year. Ethan had MEC all year through his employer

Solution

1. Who are Valerie\'s qualifying persons for Head of Household filing status?

From the details provided it is understood that Patrick and Annie are below the age of 19 and are completely dependant on Valerie while Ethan is independant as he is working.

Hence, as per the below extract on the requirements of the qualifying person, correct choice is

D. Annie and Patrick

{For the purposes of the Head of Household filing status, a qualifying person is a child, parent, or relative who meets certain conditions that enable you to qualify forHead of Household.

A qualifying child would be:

A child that is too old to qualify as a child might be able to qualify as a relative for Head of Household. A qualifying relative would be:

2. Ethan is Valerie’s qualifying child for which of the following benefits?

The answer is D. none of the above due to following reasons:

A. Exemption for a dependent : Ethan is no more dependant on valerie as he completed graduation (which shows that his age is above 19) and he is already earning

B. Child tax credit : Ethan has provided 50% of his support. Hence is fails the support test for taking the child tax credit.

C. Earned income credit : Ethan does not qualify as qualifying child and hence is not eligible for Earned Income Credit.