Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. • Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding in tax year 2020. • Marsha gave birth to Shelby on November 10, 2020. • Marsha paid all the cost of keeping up a home and support for Shelby. • Shelby and Marsha are U.S. citizens and have valid Social Security numbers. • Marsha filed Single with no dependents on her 2019 tax return and received a$1,200 Economic Impact Payment in May 2020.   3. Which of the following statements is true? a. Marsha is required to file a tax return. b. Marsha is not required to file a tax return, but should file a tax return to claim a refund of her federal income tax withholding. c. Marsha does not qualify for the earned income credit because she is under the age of 25. d. Both a and c. 4. Marsha qualifies for the recovery rebate credit of $500 for Shelby. Note: Congress may have enacted additional legislation that will affect taxpayers after this publication went to print. Please answer questions based on the information provided in Publication 4491, VITA/TCE Training Guide and Publication 4012, VITA/ TCE Resource Guide. a. True b. False

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter3: Computing The Tax
Section: Chapter Questions
Problem 8BCRQ
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Marsha is 23 years old and single. She cannot be claimed as a dependent by
another taxpayer.
• Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding
in tax year 2020.
• Marsha gave birth to Shelby on November 10, 2020.
• Marsha paid all the cost of keeping up a home and support for Shelby.
• Shelby and Marsha are U.S. citizens and have valid Social Security numbers.
• Marsha filed Single with no dependents on her 2019 tax return and received a$1,200 Economic Impact Payment in May 2020.

 

3. Which of the following statements is true?
a. Marsha is required to file a tax return.
b. Marsha is not required to file a tax return, but should file a tax return to claim a
refund of her federal income tax withholding.
c. Marsha does not qualify for the earned income credit because she is under the
age of 25.
d. Both a and c.
4. Marsha qualifies for the recovery rebate credit of $500 for Shelby.
Note: Congress may have enacted additional legislation that will affect taxpayers
after this publication went to print. Please answer questions based on the information
provided in Publication 4491, VITA/TCE Training Guide and Publication 4012, VITA/
TCE Resource Guide.
a. True
b. False

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