Leia and her husband, Han, have been married for 25 years. I…

Leia and her husband, Han, have been married for 25 years. In May of this year, the couple divorced. During the year, Leia provided all the support for herself and her 22-year-old child, Ben, who lived in the same home as Leia for the entire year. Ben is employed full time, earning $29,000 this year. What is Leia’s most favorable filing status for the year?

Jellie recently was sickened by eating spoiled peanut butter…

Jellie recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($3,700), her emotional distress ($6,000—she now fears peanut butter), and punitive damages ($44,000). What amount must Jellie include in her gross income?

In June of Year 1, Jonn’s wife, Myriah, died. Jonn did not r…

In June of Year 1, Jonn’s wife, Myriah, died. Jonn did not remarry during Year 1, Year 2, or Year 3. Jonn maintains the household for his dependent daughter, Tania, in Year 1, Year 2, and Year 3. Which is the most advantageous filing status for Jonn in Year 2?

Chewie is the Wookie family’s 22-year-old daughter. She is a…

Chewie is the Wookie family’s 22-year-old daughter. She is a full-time student at an out-of-state university but plans to return home when the school year ends. During the year, Chewie earned $4,000 of income working part time. Her support totaled $30,000 for the year. Of this amount, Chewie paid $7,000 with her own funds, her parents paid $14,000, and Chewie’s grandparents paid $9,000. Which of the following statements most accurately describes whether Chewie’s parents can claim her as a dependent?