Filing Status, Dependents, Exemptions
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What you need
• Download: http://www.irs.gov/pub/irs-pdf/p4012.pdf• Email for hard copy: [email protected]
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Filing Status
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Married Filing Separately
• Restrictionso SSN and name of spouse required for electronic fileo Standard and Itemized deductions must agreeo Living together = taxable social securityo Disallowance of certain credits and deductions
• Injured Spouseo Alternative to MFS for someo For taxpayers whose spouses have government liabilitieso Covered in later video
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Practice Scenario 1• Jamal and Jamie are not married and have lived
together for 4 years. They have two 3 year old twins.
• Jamal works and makes $7,000 a year. • Jamie works and makes $3,500 a year.• Both believe that they pay at least half of the cost
of keeping up the home.
Questions:• What is each persons filing status?• Who can claim the twins as qualifying children?
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Cost of Keeping Up a Home
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Practice Scenario 2• Hector takes care of his 8 year old niece for 7
months out of the year.• He says that his brother has 3 other kids to take
care of and he takes his niece to help the family out.
Questions:• What questions can we ask Hector to determine
his filing status and his ability to claim his niece?
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Intake and Interview Form
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Can Hector file Head of Household?
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Practice Scenario 3• Camie is 87 years old and is considered
permanently disabled. She does not work and receives $10,000 a year in social security income.
• All of her income is used on medical bills.• She lives with her daughter, Patrice. Patrice pays
all of the cost of keeping up the home.
Questions:• What is Patrice’s filing status?• How many exemptions will Patrice take?
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Determining Support
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Can Patrice file Head of Household?
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Practice Scenario 4• Chen wants to claim her neighbors child as a
dependent.• The child, Wanda, is 16 years old and lived with
Chen for the entire year. • Chen provides all of Wanda's support. • Chen is not married and has no other dependents.
Question:• Can Chen Claim Wanda as a Qualifying Child or
Qualifying Relative?• What is Chen’s filing status?
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Can Chen file Head of Household?
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Practice Scenario 5• Marcus and Minni are married filing separately.
They have 4 children, 2 years old to 15 years old.• Each would like to put two children on their
returns. • Marcus makes $17,000 a year.• Minni makes $35,000 a year.• Both split the costs of the household equally.
Questions:• Can the couple each file a return with 2 children?• Would the rules change if they were not married?
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Cost of Keeping Up a Home
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Scenario 6• 3 generations live in the same household.• The grandma and the mother of the 2 children in
the household both want to claim the children• The 2 kids are 7 and 15.
Questions:• Who can claim the children?• What are their filing statuses?• Will Grandma claim the mother or will mother
claim grandma.
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