Ellen, age 39 and single, furnishes more than 50% of the support of her parents, who do not live with her? their only source of income are Social Security benefits. Ellen practices as a self-employed interior decorator and has gross income in 2018 of $120,000. Helen has $30,000 of business deductions and $8,100 of itemized deductions.
a. Can Ellen qualify for head of household filing status? Explain.
b. What is Ellen's taxable income for 2018?
c. What is Ellen's dependent tax credit (if any)?

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The Answer of Ellen, age 39 and single, furnishes more than 50% of the support of her parents, who do not live with her? their only source of income are Social Security benefits. Ellen practices as a self-employed interior decorator and has gross income in 2018 of $120,000. Helen has $30,000 of business deductions and $8,100 of itemized deductions.
a. Can Ellen qualify for head of household filing status? Explain.
b. What is Ellen's taxable income for 2018?
c. What is Ellen's dependent tax credit (if any)?

Ellen, Age 39 and Single, Furnishes More Than 50% of the Support