On his 2021 tax return, Tony wishes to claim the ACTC by claiming his nephew,...

90.2K

Verified Solution

Question

Finance

On his 2021 tax return, Tony wishes to claim the ACTC by claiming his nephew, Sam, as a qualifying dependent. Sam has an ITIN. Tony brings in Sam's middle school records showing that Sam's address is Tony's address. Tony also brings records showing that Sam is his brother's son to prove their relationship. Which of the following is true?

Tony can claim Sam for ACTC because he has documentation showing Sam lived at this address.

Additional due diligence questions should be asked about Sam's parents before allowing Tony to claim Sam for ACTC.

Tony can claim Sam for ACTC because he has documentation proving their relationship.

Tony cannot claim Sam for ACTC because dependents with an ITIN are not eligible for ACTC beginning in Tax Year 2018.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students