Question

Sully Ward, age 26, and Ed Ward, age 16, are brothers and live together. Sully works...

Sully Ward, age 26, and Ed Ward, age 16, are brothers and live together. Sully works as a waiter and earns $42,000. Ed receives Social Security survivors benefits of $18,000. Sully provides $12,000, and an aunt provides $10,000, of Ed's support. Sully provides over one-half of the cost of Sully and Ed's home.
Which of the following describes Sully Ward's filing status and credits?

Sully can file as head of household and claim a child tax credit.

Sully files as single and claim a child tax credit.

Sully can file as head of household and claim a credit for other dependents.

Sully files a single and can claim a credit for other dependents.

Homework Answers

Answer #1
Option C is correct.
Sully can file as head of household and claim a credit for other dependents.
There are few test to claim head of household status
1) You must be unmarried
2) You must provide more than half of the support
3) You must have a qualified dependent
In this case Sully is unmarried, she provides more than half of the support to his brother
and the brother is 16 yaers and is qualified dependent, hence option C is correct
Sully can file as head of household and claim a credit for other dependents.
If any doubt please comment
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