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25 August, 06:19

Jim and Sally are not married. They lived together all year. Sally had $5,000 in earned income during 2019. Jim earned $30,000 in wages. Jim and Sally have two children. Tyler is 10 years old, and Jamie is 8. Tyler and Jamie lived with Jim and Sally for all of 2019. Tyler and Jamie did not provide over half of their own support. Jim paid all the rent, utilities, groceries, and other household expenses, which totaled $16,000. Sally paid none of the household expenses. Jim and Sally agreed they would each claim one child on the individual tax returns. Jim, Sally, Tyler, and Jamie are all U. S. citizens with valid SSNs. What are the correct filing statuses for Jim's and Sally's individual returns?

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  1. 25 August, 08:19
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    Jim could file as a head of household and qualify for higher deductions and earned income credit for one child.

    Sally should file her taxes as a single filer since she has very low income so she falls under the first tax bracket, she can also file for earned income credit for one child.
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