Jim and Kay Bridges contributed to the support of their two children, Samantha a

Question

Jim and Kay Bridges contributed to the support of their two children, Samantha and Amanda, and Jim's widowed parent, Carl. For 2012, Samantha, a 19 year old full time college student, earned $4,500 as a baby-sitter. Amanda, a 23 year old bank teller, earned $12,000. Carl received $5,000 in dividend income and $4,000 in nontaxable Social Security benefits. Carl and Amanda are US citizens and were over 1/2 supported by Jim and Kay, but neither of the two currently reside with Jim and Kay. Samantha's main place of residence is with Jim and Kay, and she is currently on a temporary abscence to attend school.

How many dependency exemptions can Jim and Kay claim on their 2012 joint income tax return?

Explanation / Answer

Refer to this. Exactly same except the names. hope you find it useful. The answer is Three. Jim and Kay Ross contributed to the support of their two children, Dale and Kim, and Jim's widowed parent, Grant. For 20X4, Dale, a 19-year old full-time college student, earned $4,500 as a baby-sitter. Kim, a 23-year old bank teller, earned $12,000. Grant received $5,000 in dividend income and $4,000 in nontaxable Social Security benefits. Grant, Dale, and Kim are U.S. citizens and were over one-half supported by Jim and Kay, but none of the three reside with Jim and Kay. How many exemptions can Jim and Kay claim on their 20X4 joint income tax return? a. Two b. Three c. Four d. Five CPA-01415 Choice "b" is correct. Taxpayers are now entitled to an exemption for each qualifying child and qualifying relative (two tests are "CARES" or "SUPORT"). For Dale, he may not meet the residency requirement; however, he does meet all requirements under "SUPORT." Kim does not, however; because her income of $12,000 exceeds the $3,100 maximum amount. Likewise, Grant's taxable income of $5,000 exceeds the minimum. Thus, 3 total exemptions can be claimed (Jim, Kay, and Dale).

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