Using 2016 tax law, indicate: (i) The taxpayer’s correct and most favorable 2016 filing status (ii) His or her greatest number of personal and dependent exemptions allowed for 2016 (iii) Whether the taxpayer is eligible to claim and receive the Child Tax Credit (Select Yes or No) (iv) The tax liability (using the tax tables)
Richard (24) is unmarried. He shared his home for the entire year with his girlfriend, Linda (21), and Linda’s daughter, Dea (2). Dea is not Richard’s daughter. Richard is not in the process of adopting her, and she was not placed in the home by a placement agency. Richard did not provide more than half of the cost of maintaining the home and more than 50% support for Linda and Dea. None of the relationships are in violation of local law. Richard’s wages were $24,500; Linda’s gross income was $27,650. Linda will claim Dea as a dependent on her federal return. Richard’s taxable income was $14,150.