Question

Problem 1

Charlie and Samantha are resident aliens, married, and want to file a joint return. They have three children. Harry is 8 years old and a resident alien. Sherry is 3 years old and Marie is 1 year old and both are US citizens. All three children lived with their parents in the US all year. Charlie, Samantha, and Harry have ITINs. Sherry and Maria have Social Security numbers. Charlie earned $38000 in wages and Samantha earned $11000 in wages. They had no other income. Charlie and Samantha provided all the support for their three children. Maria and Sherry attended daycare while Charlie and Samantha were at work. Charlie and Samantha didn't receive benefits from a dependent care benefit plan or flexible spending account. The daycare center provided the Collins with a statement indicating the amount of $5150 paid during 2019. The statement included the provider's name, address, Employer Identification Number, and phone number.

Questions

1) Who can they claim for the child tax credit?

     a. Harry & Maria

     b. Sherry & Maria

     c. Since Charlie and Samantha have ITINS, they are not eligible to claim the child tax credit.

2) They are eligible to claim the credit for other dependents, child and dependent care credit, and child tax credit. TRUE OR FALSE?

Problem 2

Gail is single and earned $28000 as a cashier, her only income. Her son Ryan is 17 years old and a full time student of $5000 in 2019. None of those benefits were taxable. He earned $10000 during the summer working as a website developer. Ryan has no withholding in box 2 of his Form W2. He used his social security survivor benefits and wages to provide over half of his own support. Gail and Ryan lived together all of 2019 and are US citizens with valid SS numbers.

Question: Which of the following credits is Gail eligible to claim on her tax return?

a. Earn income credit

b. Child tax credit

c. Credit for other dependents

I just want to recheck my answers. I this first questions are D and True. Second question is B. Please check and if I'm not correct please explain?

Answer 1

problem 1

Part 1

Option B

b. Sherry & Maria

According to latest tax reforms it is necessary for child, for being qualifying child for the child tax credit, by the due date of tax return. Sherry and Marie have Social Security numbers. Also tax filers with ITINs are eligible to get child tax credit.

Part 2

True

As they have ITINs, they are eligible for those credits.

Problem 2

Option A

A. earned income credit

In case of child tax credit and credit for other dependents, the taxpayer should provide over half of the support. In the given case Ryan himself provides over the half of the support, it means Gail cannot claim him as a qualifying dependent. In case earned income credit, the credit can also be provided when there is no qualifying dependent child.