Beginner Practice Tax Return #002 — The Working Parent (Head of Household)

A single mom walks in with one kid, one W-2, and full confidence that you know what you're doing. But do you?

Head of Household status, dependency rules, Earned Income Credit, Child Tax Credit, and possibly childcare credits — all on the same return. Miss one piece and you've either left money on the table or put her in a position with the IRS. This is the most common client in any tax office. You need to know this return inside and out.

Meet Denise Carter — a single mother of two, working full-time, with childcare expenses and three major credits to claim. Your job is to prepare her return correctly from start to finish.

Practice Tax Return #002 walks you through a realistic working parent scenario. Practice the return, check your numbers, and walk into client season knowing you've got this one down-packed.

Scenario Details:



• Client: Denise M. Carter, single mother, Memphis, TN
• Filing Status: Head of Household
• Dependents: 2 qualifying children — Jaylen (age 7) and Amara (age 4)
• Income: $36,800 W-2 wages from Regional Health Systems
• Childcare: $5,400 paid to Little Stars Daycare Center
• Forms Involved: Form 1040, W-2, Form 2441, Schedule EIC, Form 8879
• Credits: Child & Dependent Care Credit, Child Tax Credit, Earned Income Credit
• Estimated Completion Time: 35–45 minutes
• Skill Focus: HOH filing status, three major family credits, childcare documentation

What's inside this packet:

• Section 1 – Full client scenario, demographics, income summary, and forms required
• Section 2 – Supporting documents including W-2 and childcare provider info (Form 2441)
• Section 3 – What to watch for + step-by-step hints if you get stuck
• Section 4 – Completed answer key — Form 1040 with every line filled in and explained
• Section 5 – Schedule EIC & Form 2441 summary with all figures
• Section 6 – 7 common mistakes beginners make on this return type — and how to avoid them

Key Learning Outcomes:

• Correctly determine Head of Household filing status vs. Single
• Apply the standard deduction for HOH ($23,625 for 2025)
• Calculate Earned Income Credit for 2 qualifying children
• Complete Form 2441 with provider EIN and qualifying expenses
• Understand how TaxSlayer splits the Child Tax Credit between non-refundable (Line 19) and refundable ACTC (Line 28)
• Arrive at the correct total refund of $9,954

Perfect for: new tax preparers, tax preparer training programs, AFSP candidates, beginner 1040 practice, HOH filing status training, EIC practice returns, Form 2441 training, child tax credit practice, tax preparer exam prep, tax school curriculum, TaxSlayer Pro training.

File format: PDF Tax Year: 2025 Software Used: TaxSlayer Pro Level: Beginner — Scenario #002 Provider: Tax IQ Academy | taxiqacademy.com | IRS-Approved CE Provider