92%(48)44 out of 48 people found this document helpful
This preview shows page 1 - 3 out of 38 pages.
Advanced Scenarios67Advanced Course Scenarios and Test QuestionsDirectionsThe first four scenarios do not require you to prepare a tax return. Read the interview notes for each scenario carefully and use your training and resource materials to answer the questions after the scenarios .Advanced Scenario 1: Darcy and Chris TaborInterview Notes• Darcy is 45 years old, single, and a U .S . citizen with a valid Social Security number .She had $45,000 in wages .• During the interview with Darcy, you determine the following facts:–Darcy’s son Chris, age 21, is unmarried and was a full-time student working on a degree in accounting during 2017 .–Chris’ income was $8,500 in wages, which he used to pay his tuition . He did not provide more than half his own support .–Chris lived on campus during the school year, but came home on breaks and for the summer .–Chris is in his third year of college .–Chris has never had a felony drug conviction .–Chris is a U .S . citizen with a valid Social Security number .1 .Advanced Scenario 1: Test Questions1 .a .Chris can claim his personal exemption because he had earned income .b .Chris can claim his personal exemption if Darcy does not to claim him .c. Chris does not have a filing requirement so he cannot claim a personal exemp-tion .d. Chris must file a tax return and claim zero personal exemptions because Darcy can claim him as a dependent on her tax return .2 .Darcy can claim the expenses Chris paid as qualifying expenses for the American opportunity credit if Darcy claims Chris as a dependent on her return .a .Trueb .False
Advanced Scenarios68Advanced Scenario 2: Mike Hastings Interview Notes• Mike is 50 and made $36,000 in wages in 2017 . 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 2017 . Hayden lived in Mike’s home since birth .• Brittany is 25, single, and had $1,500 in wages in 2017 . She is not disabled .• 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 .Advanced Scenario 2: Test Questions3 .Who can claim Hayden as a dependent?