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. |
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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