Question

Interview Notes

Martin is married, but did not live with or have contact with his spouse in 2017. He does not know where she is. He indicated on the intake sheet that he is not legally separated.

Martin does not have children or any other dependents.

Martin worked as a clerk and earned $36,000 in wages. He had no other income.

In 2017, he took a computer class at the local university to improve his job skills.

Martin has a receipt showing he paid $1,200 for tuition. He paid for all his educational expenses and did not receive any assistance or reimbursement.

He paid $400 for course books from an online bookseller.

Martin paid $150 for a parking permit. It was not a requirement of enrollment.

Martin does not have enough deductions to itemize.

He is a U.S. citizen with a valid Social Security number.

8. What is Martin's most advantageous allowable filing status?  

A.            Married Filing Separately             

B.            Head of Household        

               

C.            Single   

D.            Qualifying Widower

9. Considering Martin's filing status and using Publication 4012, Tab J, Education Benefits, which education benefit is Martin eligible to claim?               

A.            American opportunity credit      

B.            He does not qualify for any education benefit   

C.            Lifetime learning credit

D.            Tuition and fees deduction   

Answer 1

Solution:
8. The correct option is A. Married Filing Separately
Explanation:
In this case, Martin cannot choose the three filing status except married filing separately because for head of household and single the tax payer should be either single or divorced or legally separated. in this case, they are not legally separated.
For qualifying widower the spouse should be died, here Martin spouse is not died.
Therefore, Martin's most advantageous allowable filing status is Married filing separately.

9. The correct option is B. He does not qualify for any education benefit
Explanation:
In this case, Martin went to a local university, which is not an eligible educational institution, thus with this condition he cannot take benefit from American opportunity credit and life time credit.
For the tuition and fees deduction, he cannot claim deduction because of his filing status i.e., married filing separately and the expenses should be relating to higher education.