Question

Interview Notes

Henry and Claudia are married and want to file a joint return.

They have one child, Alyssa, who is 5 years old and lived with them all year.

Henry, Claudia, and Alyssa lived in the U.S. all year and all have Individual Taxpayer Identification Numbers (ITINs).

Henry earned $37,000 in wages. Claudia had $5,000 in wage income. They had no other income.

Henry and Claudia provided all the support for Alyssa.

6. Are Henry and Claudia eligible to claim the earned income credit?       

A.            No, because Henry and Claudia’s income is too high.      

               

B.            No, because they all have ITINs.              

C.            Yes, because Alyssa is their qualifying child for EIC.          

D.           Yes, but only if they file a joint return.   

7. Henry and Claudia can claim Alyssa for which tax benefit(s)?  

               

A.            Dependency exemption and the child tax credit               

B.            Dependency exemption only    

C.            Child tax credit only       

D.            Neither dependency exemption nor child tax credit   

Answer 1

6. option B No, because they all have ITINs.   

Because to qualify for Earned Income Credit they must have a valid Social Security number (not an ITIN)

7. option A Dependency exemption and the child tax credit   

They qualify for dependncy exemption becasue they provided all the support for Alyssa and Alyssa leave with them for the entire year. They qualify for  child tax credit because Alyssa is under age 17 and also becasue she is dependent.