How many qualifying children does Mike have for the earned income credit?

Tracy is 40 years old, single, and a U.S. citizen with a valid Social Security number. She has a filing requirement.
• Tracy tells you she has chosen not to claim her son, Chris, as a dependent so he can get a higher refund.
• During the interview with Tracy, you determine the following facts:
• Tracy’s son Chris, age 19, is unmarried and was a full-time student during 2016.
• Chris’ income was $6,500 in wages. He does not provide more than half his own support.
• Chris lived with Tracy all year.
• Chris is a U.S. citizen with a valid Social Security number.
1. Chris can claim his own personal exemption since his mother has decided not to claim him as a dependent.

True
False
Using Publication 4012, Who Must File tab, Chart B, Chris has a filing requirement and must file a tax return.

True
False

•
Mike is 45 and made $36,000 in wages in 2016. He is single and pays all the cost of keeping up his home.
• Mike’s daughter, Brittany, lived with Mike all year.
• Brittany’s son, Hayden, was born in November 2016. Hayden lived in Mike’s home since birth.
• Brittany is 18, single, and had $1,700 in wages in 2016.
• Mike provides more than half of the support for both Brittany and Hayden.
• Mike, Brittany, and Hayden are all U.S. citizens with valid Social Security numbers.
• Mike and Hayden had health insurance that qualified as minimum essential coverage. Brittany did not have health insurance at all in 2016.
3. Who can claim Hayden as a dependent?

A. No one can claim Hayden because he was not a member of the household for more than six months.

B. Mike cannot claim Hayden because Hayden is not Mike’s child.

C. Brittany can claim Hayden because she is his parent.

D. Mike can claim Hayden; Brittany cannot claim Hayden because Brittany qualifies as Mike’s dependent.

4. How many qualifying children does Mike have for the earned income credit?

A. 0

B. 1

C. 2

If Brittany does not qualify for a health coverage exemption, Mike must make a shared responsibility payment.

True
False

• Henry and Claudia are married and want to file a joint return.
• They have one child, Alyssa, who is 5 years old and lived with them all year.
• Henry and Alyssa are U.S. citizens and have valid Social Security numbers.
• Claudia lives with Henry and Alyssa in the U.S. but is not lawfully present in the U.S and has an Individual Taxpayer Identification Number (ITIN).
• Claudia did not have any health insurance for all of 2016. Henry and Alyssa had minimum essential coverage (MEC) all year.
• Henry earned $37,000 in wages and had no other income. Claudia had $5,000 in earned income.
• Henry and Claudia provided all the support for Alyssa.
6. Henry and Claudia are eligible to claim the earned income credit.

True
False

7. Claudia must make a shared responsibility payment.

True
False
• Martin is married, but did not live with or have contact with his spouse this tax year. He does not know where she is. He indicated on the intake sheet that he is not legally separated.
• Martin does not have any dependents.
• Martin worked as a clerk and earned $36,000 in wages. He had no other income.
• In 2016, he took a computer class at the local university to improve his job skills.
• Martin has a receipt showing he paid $1,095 for tuition. He paid for all his educational expenses and did not receive any assistance or reimbursement.
• He paid $350 for a course book from an online bookseller. Purchase of the book was not a requirement of enrollment.
• Martin paid $90 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. Martin’s filing status is Single.