Filing status-dependency exemptions and child credit


Problem: Filing Status, Dependency Exemptions, and Child Credit. For the following taxpayers, indicate which tax form should be used, the applicable filing status, and the number of personal and dependency exemptions available, and the number of children who qualify for the child credit.

1. Arnie is a single college student who earned $7,700 working part-time. He had $200 of interest income and received $1,000 of support from his parents.

2. Buddy is a single college student who earned $7,700 working part-time. He had $1,600 of interest income and received $1,000 of support from his parents.

3. Cindy is divorced and received $6,000 of alimony from her former husband and earned $12,000 working as a secretary. She also received $1,800 of child support for her son who lives with her. According to a written agreement, her former husband is entitled to receive the dependency exemption.

4. Debbie is a widow, age 68, who receives a pension of $8,000, nontaxable social security benefits of $8,000, and interest of $4,000. She has no dependents.

5. Edith is married, but her husband left her two years ago and she has not seen him since. Edith supported herself and her daughter, age

6. She paid all household expenses. Her income of $16,000 consisted of a salary of $15,200 and interest of $800.

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Finance Basics: Filing status-dependency exemptions and child credit
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