| Scenario 1: Jeff and Linda Arnold |
Interview Notes
- Jeff and Linda got married in December of 2018.
- They are both U.S. citizens with valid Social Security numbers.
- They do not elect to file a joint return for 2018.
- Jeff worked all year and received wages of $32,000. He received full health insurance coverage from his employer all year.
- Linda worked part-time at a book store January through September. She earned $9,000 for the year. In November, she started working at the library. She had health insurance through her employers, except for the month of October when she was unemployed.
1. Jeff may need to make a shared responsibility payment. | False |
Interview Notes
- Jeff and Linda got married in December of 2018.
- They are both U.S. citizens with valid Social Security numbers.
- They do not elect to file a joint return for 2018.
- Jeff worked all year and received wages of $32,000. He received full health insurance coverage from his employer all year.
- Linda worked part-time at a book store January through September. She earned $9,000 for the year. In November, she started working at the library. She had health insurance through her employers, except for the month of October when she was unemployed.
2. Linda does not need to make a shared responsibility payment because she qualifies for an exemption under the short coverage gap criteria. | True |
| Scenario 2: Ava Harvard |
Interview Notes
- Ava is 43, divorced, and earned $38,000 in wages.
- Ava's 20-year-old son, David, is unmarried and a full-time student working towards a degree in Business Administration. David lives on campus during the school year and spent the summer at home with his mother.
- David does not have a felony drug conviction.
- Ava paid $4,000 of David's tuition that was not covered by his scholarship.
- Ava provided more than half of her son's support and all the cost of his room and board on campus.
- David's only income was $3,800 in wages.
- Ava and David are U.S. citizens and have valid Social Security numbers.
3. Ava cannot claim her son for the earned income credit because he did not live with her for more than half the year and does not meet the residency test. | B. False, attendance at school is considered a temporary absence and this time is counted as time that her child lived with her. |
Interview Notes
- Ava is 43, divorced, and earned $38,000 in wages.
- Ava's 20-year-old son, David, is unmarried and a full-time student working towards a degree in Business Administration. David lives on campus during the school year and spent the summer at home with his mother.
- David does not have a felony drug conviction.
- Ava paid $4,000 of David's tuition that was not covered by his scholarship.
- Ava provided more than half of her son's support and all the cost of his room and board on campus.
- David's only income was $3,800 in wages.
- Ava and David are U.S. citizens and have valid Social Security numbers.
4. David is Ava’s qualifying person for which of the following? (Select all that apply) |
A. Head of Household filing status
B. Credit for other dependents
C. Education credit
|
| Scenario 3: Ellen Santos |
Interview Notes
- Ellen is 62. During the interview, she mentions that she always filed a joint return with her husband who died in 2014.
- Ellen has not remarried and she pays all the cost of keeping up her home. She earned $28,500 in wages for 2018.
- Ellen provides all the support for her two grandchildren who lived with her all year. Tricia is 12 years old and Evan is 16 years old.
- She does not have enough deductions to itemize.
- Her income tax before credits is $1,050.
- Ellen, Tricia, and Evan are all U.S. citizens with valid Social Security numbers.
5. What is the amount of Ellen's standard deduction? | C. $18,000 |
Interview Notes
- Ellen is 62. During the interview, she mentions that she always filed a joint return with her husband who died in 2014.
- Ellen has not remarried and she pays all the cost of keeping up her home. She earned $28,500 in wages for 2018.
- Ellen provides all the support for her two grandchildren who lived with her all year. Tricia is 12 years old and Evan is 16 years old.
- She does not have enough deductions to itemize.
- Her income tax before credits is $1,050.
- Ellen, Tricia, and Evan are all U.S. citizens with valid Social Security numbers.
6. The maximum amount of additional child tax credit that Ellen is able to claim per qualifying child is: | C. $1,400 |
| Scenario 4: Christopher and Amanda Drury |
Interview Notes
- Christopher and his wife Amanda have lived in the United States since 2012 and have Individual Taxpayer Identification Numbers (ITINs).
- Christopher is 45 and Amanda is 40. They have been married since 2000. They both worked in 2018 and their combined wages for the year were $40,000.
- They have one child, Jennifer, who is 3 years old and lived with them all year. Jennifer is a U.S. citizen and has a valid Social Security number.
- In order for them to work, they paid $5,000 in daycare for Jennifer. The statement from the daycare provider includes the provider's name, address, valid Employer Identification Number, and the amount paid for Jennifer's care.
- Christopher and Amanda provided all the support for Jennifer and all the costs of keeping up their home.
7. Can Christopher and Amanda claim Jennifer as a qualifying child for the earned income credit (EIC)? | C. No, because Christopher and Amanda both have ITINs. |
Interview Notes
- Christopher and his wife Amanda have lived in the United States since 2012 and have Individual Taxpayer Identification Numbers (ITINs).
- Christopher is 45 and Amanda is 40. They have been married since 2000. They both worked in 2018 and their combined wages for the year were $40,000.
- They have one child, Jennifer, who is 3 years old and lived with them all year. Jennifer is a U.S. citizen and has a valid Social Security number.
- In order for them to work, they paid $5,000 in daycare for Jennifer. The statement from the daycare provider includes the provider's name, address, valid Employer Identification Number, and the amount paid for Jennifer's care.
- Christopher and Amanda provided all the support for Jennifer and all the costs of keeping up their home.
8. Which credits can Christopher and Amanda claim on their tax return? | D. Both A and B |
| Scenario 5: Mathew Rice and Ashley Tufts |
Interview Notes
- Mathew and Ashley are both 28 years old.
- Mathew and Ashley are not married to each other and lived together all year. Mathew has never been married. Ashley is still legally married to another man, but she does not want to file a joint return with her spouse.
- Ashley earned $27,000 in wages during 2018. Mathew received $13,000 in wages.
- Mathew has two children from a previous relationship. Mark is 9 and Kevin is 6 years old. Mark and Kevin lived with Mathew and Ashley for all of 2018. Mark and Kevin did not provide over half of their own support.
- Ashley paid all the rent, utilities, and household expenses. Mathew did not pay any household expenses.
- Mathew, Ashley, Mark, and Kevin are all U.S. citizens with valid Social Security numbers.
9. Which of the following statements is true? | C. Ashley's filing status is Married Filing Separately and Mathew's filing status is Single. |
Interview Notes
- Mathew and Ashley are both 28 years old.
- Mathew and Ashley are not married to each other and lived together all year. Mathew has never been married. Ashley is still legally married to another man, but she does not want to file a joint return with her spouse.
- Ashley earned $27,000 in wages during 2018. Mathew received $13,000 in wages.
- Mathew has two children from a previous relationship. Mark is 9 and Kevin is 6 years old. Mark and Kevin lived with Mathew and Ashley for all of 2018. Mark and Kevin did not provide over half of their own support.
- Ashley paid all the rent, utilities, and household expenses. Mathew did not pay any household expenses.
- Mathew, Ashley, Mark, and Kevin are all U.S. citizens with valid Social Security numbers.
10. Who can claim Mark and Kevin as qualifying children for earned income credit? | B. Mathew |
| Scenario 6: George and Helen Reed |
Interview Notes
- George and Helen have an 18-year-old son, Joshua, who lived with them all year and is a college student.
- George and Helen provided all the support for Joshua and all the costs of keeping up their home.
- Joshua worked during the year and received wages of $2,000. He had $140 of federal withholding.
- The Reeds have a balance due on their return and are unsure what to do.
- George, Helen, and Joshua are U.S. citizens with valid Social Security numbers.
11. What actions should George and Helen take to prevent having a balance due next year? | D. Both A and B. |
Interview Notes
- George and Helen have an 18-year-old son, Joshua, who lived with them all year and is a college student.
- George and Helen provided all the support for Joshua and all the costs of keeping up their home.
- Joshua worked during the year and received wages of $2,000. He had $140 of federal withholding.
- The Reeds have a balance due on their return and are unsure what to do.
- George, Helen, and Joshua are U.S. citizens with valid Social Security numbers.
12. What options do George and Helen have if they are not able to full pay their balance due by the due date of the return? | C. Pay as much as they can by the due date of the return and request a payment plan. |
Interview Notes
- George and Helen have an 18-year-old son, Joshua, who lived with them all year and is a college student.
- George and Helen provided all the support for Joshua and all the costs of keeping up their home.
- Joshua worked during the year and received wages of $2,000. He had $140 of federal withholding.
- The Reeds have a balance due on their return and are unsure what to do.
- George, Helen, and Joshua are U.S. citizens with valid Social Security numbers.
13. George and Helen ask if their son Joshua should file a tax return for 2018. How should the volunteer respond? | D. Joshua should file a tax return to claim a refund of his withholding. |
| Scenario 7: Jacob and Martha Mills |
| 14. What is the amount of gambling winnings claimed on Jacob's and Martha's 2018 tax return? | B. $1,300 (INCORRECT) |
| 15. Jacob and Martha can claim $2,000 of qualified education expenses to calculate Daniel's American opportunity credit. | True |
| 16. How much of Martha and Jacob's Social Security is taxable? | C. $7,169 |
17. The amount of Martha and Jacob's standard deduction is $________.
(Do not enter dollar signs, commas, periods, or decimal points in your answer.) |
26600
|
| 18. Which of the following items are included in the total payments on Jacob and Martha's tax return? | D. All of the above |
| 19. What form must be used to split Jacob and Martha’s refund? | A. Form 8888, Allocation of Refund (Including Savings Bond Purchases) |
| Scenario 8: Emily Clark |
| 20. Does Emily have to pay a shared responsibility payment on her tax return? | B. No, she can claim a short coverage gap exemption on her tax return. |
21. The amount of Emily's education credit claimed on her tax return is $________.
(Do not enter dollar signs, commas, periods, or decimal points in your answer.) |
0 (INCORRECT)
|
22. Emily's total federal income tax withheld is $________.
(Do not enter dollar signs, commas, periods, or decimal points in your answer.) |
3470
|
| 23. What is the total credit amount shown on Form 2441, Child and Dependent Care Expenses? | C. $660 |
| 24. Emily is eligible to claim the child tax credit on her 2018 tax return. | True |
| 25. Emily is subject to the 10% additional tax from her 401(k) distribution. | True |
