I am writing a financial letter for this case. I need help on how to explain how

Question

I am writing a financial letter for this case. I need help on how to explain how to do her income tax. I have to submit an example journal entry and explain it to said client in the case. Thank you in advance

Ginger Wright is a 35-year-old single mother. She lives with her 10-year-old son, Joseph. In December 2014, Ginger and Joseph’s dad finalized their divorce. As part of the agreement, Ginger and her exhusband agreed to alternate claiming Joseph as a dependent. In the first year (2014), Ginger claimed the exemption. In 2015, Joseph’s dad is entitled to the exemption. During the year, both parents provided 50% of Joseph’s support. Ginger has custody of Joseph, and he lived with her 325 days during the year. The other 40 days he lived with his dad. Ginger paid all the expenses of her house. During 2015, Ginger started a new business. Because it was the first year, Ginger’s profit was relatively low. She had $100,000 of gross receipts and $95,000 of expenses for a net profit of $5,000. Her business profit was her only source of income. Ginger would like to know what she needs to do to give her ex-husband the dependency exemption. She also would like to know if she can still file as head of household and claim the child tax credit and the earned income tax credit. To maximize her tax benefits, Ginger is also wondering if she can choose not to deduct some of her expenses. She has heard that having a higher income can make her eligible for larger child tax and earned income tax credits.

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