1. Even though Gloria is single, her filing status is Head of Household. Why is Gloria able to file as head of household? Gloria is able to file head of house hold in this case because, she has a qualifying dependent. A qualifying dependent would be a closely related relative dependent that you have provided for maintaining a home for yourself and your dependent or dependents.
2. How does Gloria benefit from filing as head of household, rather than single? She benefits more from filing head of household because she will get better tax benefits like higher standard deductions and lower tax rates.
3. What is Gloria’s adjusted gross income? In which line in the tax form did you find her total income? Line-21 Adjusted gross income 22,275.
4. Even though Gloria is filing the short form (1040A), she is still able to get two credits. What are the two credits Gloria receives? List the line you found the answers on as well. 1,000 Additional child Tax credit line 41, and 728 for child care tax credit lines 29-33.
5. How much of a refund is Gloria going to receive? 2,500
6. What are the four steps listed in the filing checklist? Step 1: Sign and date the return. Step 2: Assemble the return. Step 3: Mail the return Step: Keep a copy.
7. On the Wage and Tax statement, list how much Gloria paid in her Federal Tax Withholding? 1,500
8. How much did she pay in Social Security and Medicare? 1,721 in total.
9. If she had owed money but was not able to pay it, what options would she have? She can apply for additional time to pay through an online application where she might get granted extra time to pay based on her situation. Also she can setup an installment agreement; she could do this by applying on a Web-based Online Payment Agreement application on IRS.gov. There she might be allowed as a taxpayer who owes $25,000 or less in combined tax, penalties and interest to self-qualify, apply for, and receive immediate notification of approval of this option. She can also request an installment agreement that under circumstances may allow her to create a convenient way to establish an installment agreement this takes away the need for personal interaction with IRS and reduces paper processing. She can also do this by completing and submitting a Form 9465 in writing, or call 1-800-829-1040 to make your request. Balances over $25,000, are due to complete a financial statement to determine the monthly payment amount for an installment plan.
10. If you have questions about filing your tax return, where would you go for help? Did any of Gloria’s tax conditions teach you about your own situation? IRS service center, and Gloria’s situation is different than mine but I did learn that there is a child care credit available, which I will take advantage next year when filing my taxes.