Question

DIEW and . Colby Denison Interview Notes Colby all year. . Drew are married and have one five-year-old child who lived with Colby, and their numbers. rew deployed to Afghanistan on January 10. 2017. His last day in the combat zone was January 31, 2018. Drew's Form W-2 shows: Box 1 = $12,000 -Box 12a S32.000. Code Q Colby's Form W-2 shows $10,200 in box 1. This was her only income. : ary Scenario 2: Test Questions 6. Since Drew was deployed during 2017, Drew and Colby ask what fling status they should use. What is your response? a. Drew and Colby can each choose to file as Single. b. It would be most advantageous to file Married Filing Jointly since they may be able to claim the earned income tax credit. Colby can file as Head of Household and claim the child, and Drew must file as Single. Colby must file Married Filing Separately since Drew was absent from the home most of the year. c. d. The amount of taxable wages that will be reported on the Denisons' Form 1040 line 7 is $ 7. 8. Nontaxable combat pay may be included in eaned income ifit results in a higher earned income credit a. True b. False The Denisons have 278 days from January 31,2018 to file their 2016 tax return (180 days plus the 98 days that remained before the April 18, 2017 deadline when Drew entered the combat zone). a. True b. False 9.

Answer 1

6. c.

7. $ 12000

because line 7 reports only taxable income that is box 1

where as box 12a, Code Q reports only Non taxable combat pay.

8. b.

9. b.