Question

In: Accounting

Sean is 49 and his divorce became final on October 21, 2018. He pays all the...

Sean is 49 and his divorce became final on October 21, 2018. He pays all the cost of keeping up his home in the United States. He earned $38,000 in wages in 2018.

Sean's daughter, Sonya, lived with Sean all year. She is 18, single, and had $4,000 in wages in 2018.

Sonya’s son, Jimmy, was born on November 17, 2018. Jimmy lived in Sean's home all year.

Sean provides more than half of the support for both Sonya and Jimmy.

Sean, Sonya, and Jimmy are all U.S. citizens with valid Social Security numbers.

Sean is able to claim the credit for other dependents for Sonya

Yes

No

Who can Sean claim as a qualifying child(ren) for the earned income credit?

Sean has no qualifying children.

Sean can claim Jimmy, but not Sonya

Sean can claim Sonya, but not Jimmy

Sean can claim both Sonya and Jimmy

Which of the following statements is true?

A. Sean must file Married Filing Separately because he was not considered single for the entire year

Sonya and Jimmy are qualifying persons for Sean to file Head of Household.

Sean has to file Single

Sean can choose to file a joint return with his ex-wife because his divorce was not final until October 21, 2018

Solutions

Expert Solution

given information is as below


Sean is 49 and his divorce became final on October 21, 2018. He pays all the cost of keeping up his home in the United States. He earned $38,000 in wages in 2018.

Sean's daughter, Sonya, lived with Sean all year. She is 18, single, and had $4,000 in wages in 2018.

Sonya’s son, Jimmy, was born on November 17, 2018. Jimmy lived in Sean's home all year.

Sean provides more than half of the support for both Sonya and Jimmy.

Sean, Sonya, and Jimmy are all U.S. citizens with valid Social Security numbers.


now ,


1.Sean is able to claim the credit for other dependents for Sonya:
yes, as there is only one child on the list for whom the credit is being sought.

2.Who can Sean claim as a qualifying child(ren) for the earned income credit?
Sean can claim both of the child as he is providing more than half of the support to Sonya. Jimmy being under 13 is already on the child credit list.

3.the following statement is correct :
Marital status at the end of the year is to be considered for the tax. The marital status on 31 Dec is to be considered.

Sean can file as head of the family as he had custody of the children.


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