Martin is married, but did not live with or have contact with his spouse in 2017. He
does not know where she is. He indicated on the intake sheet that he is not legally
separated.
• Martin does not have children or any other dependents.
• Martin worked as a clerk and earned $36,000 in wages. He had no other income.
• In 2017, he took a computer class at the local university to improve his job skills.
• Martin has a receipt showing he paid $1,200 for tuition. He paid for all his
educational expenses and did not receive any assistance or reimbursement.
• He paid $400 for course books from an online bookseller.
• Martin paid $150 for a parking permit. It was not a requirement of enrollment.
• Martin does not have enough deductions to itemize.
• He is a U.S. citizen with a valid Social Security number.
Advanced Scenario 4: Retest Questions
8. Martin’s most advantageous allowable filing status is Single.
a. True
b. False
9. Considering Martin’s filing status and using Publication 4012, Tab J, Education
Credits, Martin is eligible to claim the lifetime learning credit.
a. True
b. False
8. TRUE
9. FALSE
To determine the answers to these questions, we need to consider the information provided about Martin's situation.
8. Martin's most advantageous allowable filing status is Single.
To determine Martin's filing status, we need to consider his marital status and whether he qualifies for any other filing statuses. In this case, Martin is married, but he did not live with or have contact with his spouse in 2017. However, he indicated on the intake sheet that he is not legally separated. Since Martin is not legally separated, his filing status would be considered as Married Filing Jointly or Married Filing Separately.
Based on the information given, there is no indication that Martin's spouse is filing a tax return or that they have chosen to file jointly. Therefore, Martin's most advantageous allowable filing status would be Single.
So, the answer to question 8 is TRUE.
9. Considering Martin's filing status and using Publication 4012, Tab J, Education Credits, Martin is eligible to claim the lifetime learning credit.
The lifetime learning credit is a tax credit that can be claimed for qualified education expenses. To determine if Martin is eligible, we need to consider his filing status, income, and the expenses he paid for his education.
Since Martin's filing status is Single, he can be eligible for the lifetime learning credit if his modified adjusted gross income (MAGI) falls within the eligible income range. In 2017, to claim the lifetime learning credit, the MAGI limit for a Single filer was $56,000.
From the information provided, Martin earned $36,000 in wages, and his only expense related to education was $1,200 in tuition fees. Based on this, there is no mention of whether Martin's income exceeds the MAGI limit or if he meets the other eligibility criteria such as enrollment in an eligible educational institution.
Without knowing the complete picture of Martin's income and expenses, we cannot determine if he is eligible for the lifetime learning credit. Therefore, the answer to question 9 is FALSE.
8. Martin’s most advantageous allowable filing status is Single. (True)
9. Considering Martin’s filing status and using Publication 4012, Tab J, Education Credits, Martin is eligible to claim the lifetime learning credit. (False)