35 LO3 4 Determine how many personal and dependency exemptio

35. LO.3, 4 Determine how many personal and dependency exemptions are available in each of the following independent situations. Specify whether any such exemptions would come under the qualifying child or the qualifying relative category a. Andy maintains a household that includes a cousin (age 12), a niece (age 18), and a son (age 26). All are full-time students. Andy furnishes all of their support. b. Jackie provides all of the support of a family friend\'s son (age 20) who lives with her. She also furnishes most of the support of her stepmother, who does not live with her. c. Raul, a U.S. citizen, lives in Costa Rica. Raul\'s household includes his friend Helena, who is age 19 and a citizen of Costa Rica. Raul provides all of Helena\'s support. d. Karen maintains a household that includes her ex-husband, her mother-in- law, and her brother-in-law (age 23 and not a full-time student). Karen pro- vides more than half of all of their support. Karen is single and was divorced last year 36. LO.4 Jenny, age 14, lives in a household with her father, uncle, and grandmother. The household is maintained by the uncle. The parties, all of whom file their own Federal income tax returns, report AGI as follows: father ($30,000), uncle ($50,000), and grandmother ($40,000) a. Who is eligible to claim Jenny as a dependent on a Federal income tax return? b. Which of Jenny\'s relatives takes precedence in claiming the exemption? Explain

Solution

35 Solution 1 niece qualifying child category cousin and son qualifying relative category 1 personal-for self, 2 dependency-cousin, niece. 2 stepmother and family friends son qualifying relative category Both of them are the qualifying relatives. 3 Helena not the qualifying child or relative Helena doesn’t meet the citizenship or residency test. Raul is not her adoptive father even he provides all support 4 The mother-in-law and brother-in-law qualifying relative category Although the ex-husband is a member of the household, he can’t be qualified after the year of the divorce 36 solution a All of them (Father, Uncle and grand mother) b Her Father