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Advanced Scenario 6: Samantha Rollins Directions Interview Notes Samantha's husband died in March 2013. She has not remarried. Samantha owned and...
15. Is Head of Household the most advantageous allowable filing status Samantha can use? Yes No
16. How many qualifying children does Samantha have for the earned income credit? A. 0 B. 1 C. 2 D. 3
17. The reduction in Samantha's basis reported on Form 982 is ________. A. $160,000 B. $145,000 C. $100,000 D. $45,000
18. What is the credit for child and dependent care expenses on Form 1040, line 49? $________.
19. Samantha and her children did not have minimum essential coverage (MEC) for two months of the tax year. How does this affect her tax return?
A. She can claim the short coverage gap exemption.
B. She must make a shared responsibility payment for herself.
C. She must make a shared responsibility payment for Meredith and Oliver.
D. None of the above.
20. What is the amount of self-employment tax in the Other Taxes section of Samantha's Form 1040, page 2? $________.
Interview Notes
• Samantha’s husband died in March 2013. She has not remarried.
• Samantha owned and lived in her home since 2010. After struggling to make the mortgage payments for the last few years, she worked out a loan modification agreement with her lender. The modification reduced her principal balance and monthly payment and allowed her to stay in the home.
• Samantha purchased the home in 2010 for $160,000. In January 2016, at the time of the workout, the balance owed was $145,000. The home was never used in a business or as rental property. The mortgage was used to purchase, and was secured by, the home. Samantha has not filed for bankruptcy.
• Samantha provided the entire cost of maintaining the household and all the support for her children, Meredith and Oliver, in 2016.
• Her younger brother, Howard, is permanently and totally disabled. He received disability income which he used to provide more than half of his own support.
• Samantha lost her job in December 2015. She received unemployment for two months in 2016 until she found a new job.
• Samantha provides translation services to earn extra income. She received a Form 1099-MISC. Her only expense related to this income was $50 in office supplies.
• Meredith and Oliver attended day care while Samantha worked.
• Samantha, Meredith, and Oliver had health insurance that provided minimum essential coverage (MEC) paid by her new employer beginning on March 1, 2016. She and the children did not have MEC for January and February. Samantha, Meredith, and Oliver had health insurance through her previous employer until December 15, 2015. Howard had MEC all year. None of them purchased insurance through the Marketplace.
