Filing Status, Dependents, Exemptions 1

What you need Download: for hard copy: 2

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Filing Status 6

Married Filing Separately Restrictions o SSN and name of spouse required for electronic file o Standard and Itemized deductions must agree o Living together = taxable social security o Disallowance of certain credits and deductions Injured Spouse o Alternative to MFS for some o For taxpayers whose spouses have government liabilities o Covered in later video 7

Practice Scenario 1 Jamal and Jamie are not married and have lived together for 4 years. They have two 3 year old twins. Jamal works and makes $7,000 a year. Jamie works and makes $3,500 a year. Both believe that they pay at least half of the cost of keeping up the home. Questions: What is each persons filing status? Who can claim the twins as qualifying children? 8

Cost of Keeping Up a Home 9

Practice Scenario 2 Hector takes care of his 8 year old niece for 7 months out of the year. He says that his brother has 3 other kids to take care of and he takes his niece to help the family out. Questions: What questions can we ask Hector to determine his filing status and his ability to claim his niece? 10

Intake and Interview Form 11

Can Hector file Head of Household? 12

Practice Scenario 3 Camie is 87 years old and is considered permanently disabled. She does not work and receives $10,000 a year in social security income. All of her income is used on medical bills. She lives with her daughter, Patrice. Patrice pays all of the cost of keeping up the home. Questions: What is Patrice’s filing status? How many exemptions will Patrice take? 13

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Determining Support 15

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Can Patrice file Head of Household? 17

Practice Scenario 4 Chen wants to claim her neighbors child as a dependent. The child, Wanda, is 16 years old and lived with Chen for the entire year. Chen provides all of Wanda's support. Chen is not married and has no other dependents. Question: Can Chen Claim Wanda as a Qualifying Child or Qualifying Relative? What is Chen’s filing status? 18

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Can Chen file Head of Household? 20

Practice Scenario 5 Marcus and Minni are married filing separately. They have 4 children, 2 years old to 15 years old. Each would like to put two children on their returns. Marcus makes $17,000 a year. Minni makes $35,000 a year. Both split the costs of the household equally. Questions: Can the couple each file a return with 2 children? Would the rules change if they were not married? 21

Cost of Keeping Up a Home 22

Scenario 6 3 generations live in the same household. The grandma and the mother of the 2 children in the household both want to claim the children The 2 kids are 7 and 15. Questions: Who can claim the children? What are their filing statuses? Will Grandma claim the mother or will mother claim grandma. 23

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