What is the best filing status in general for the scenarios


Problem

Part I: What is the best filing status in general, for the following scenarios? Provide explanation for potential partial credit.

i. Anderson is a 25-year-old person who recently graduated from college in May 2022. In August 2022, Anderson started working for USAA and received an annual salary of $55k.

ii. Addy got married in Jan 2022. By August 2022, Addy found out that his wife was having an affair with her ex-boyfriend. For that reason, Addy started filing for a divorce in late August. Due to the lengthy litigation procedure, Addy is still, on documents, married at the end of 2022, even though the two are not living together anymore. Addy knows that Alisa (his wife) is in a financially messed up situation. For that reason, he wants to be as financially separated from her as possible.

iii. Andrea is a single mom who is living with her 4 years old son in an apartment in Dallas. She has been single and taking care of her son for 4 years already since he was born in 2016. Being a single mom is not easy, Andrea not only has to pay the monthly rent, utilities, etc. for the apartment, but she also must pay the monthly childcare cost of $1000/month.

Part II: For each of the scenarios above, without any further information, point out any potential income tax credits that the person could possibly get. If no credit can be claimed, write "NO clear potential credit based on the information provided". If you need to assume something to claim a credit, write down your assumption as well.

Request for Solution File

Ask an Expert for Answer!!
Taxation: What is the best filing status in general for the scenarios
Reference No:- TGS03250661

Expected delivery within 24 Hours