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School
California State University, Northridge **We aren't endorsed by this school
Course
ACCT 440
Subject
Accounting
Date
Oct 19, 2023
Pages
1
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«18"» Hide Explanation In Year 4, after Mindy's three children have grown and moved out of the house, Mindy (unmarried) moved her mother, Mary, into an assisted living facility for which Mindy pays 75% of the cost. Mindy had not previously lived with Mary, and Mary paid for her own living expenses while she lived in her own home. What filing status should Mindy use for Year 4, assuming Mary moved into the assisted living facility on January 1, Year 4? A. B C. D Single. Married filing jointly. Head of household. Surviving spouse. Explanation x Choice "A" is incorrect. Mindy qualifies for a more favorable filing status than single. Choice "B" is incorrect. Mindy is not married. Choice "C" is correct. Mindy qualifies for and should use head of household status in Year 4, because she maintained more than half of the upkeep on Mary's principal residence for the entire taxable year (note that Mindy is not required to live with her mother to qualify for head of household status). It is the most favorable filing status for which she qualifies. Choice "D" is incorrect. Mindy has not had a spouse die in the past two years.
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