Advanced Scenarios: Case Study

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Advanced Scenario 6: Matthew Clark Interview Notes • In September 2014, Matthew enrolled in college to pursue a bachelor’s degree. He had no other post-secondary education. Brown College is a qualified educational institution. • Matthew does not have a felony drug conviction. • Matthew brought a Form 1098-T and an account statement from the college. The Form 1098-T includes the amount billed for the Spring 2015 semester. Matthew has not yet paid this amount. • The terms of Matthew’s scholarship require that it be used to pay for tuition. • Matthew took a distribution from his IRA to pay for some of his education expenses. All his IRA contributions were deductible in the year he made them. • Matthew’s 67-year-old mother, Deborah,…show more content…
She has not remarried. • Kelly provided the entire cost of maintaining the household and all the support for her children, Mia and Logan, in 2014. • Her younger brother, Brian, is permanently and totally disabled. He received disability income which he used to provide more than half of his own support. • Kelly lost her job in December 2013. She received unemployment for a brief period in 2014 until she found a new job. • While she was unemployed, she cashed in her 401(k) savings from her previous employer and used the money for household expenses. She does not qualify for any exception to the additional tax on early distributions. • Mia and Logan attended day-care while Kelly worked. • Kelly, Mia, Logan and Brian all had minimum essential health care coverage all year. They did not purchase insurance through the Marketplace. 76 Advanced Scenarios Advanced Scenarios 77 78 Advanced Scenarios Advanced Scenarios 79

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