Aishwarya’s husband passed away in 2014. She needs to determine whether Jasmine,

Question

Aishwarya’s husband passed away in 2014. She needs to determine whether Jasmine, her 17-year old step-daughter who is single, qualifies as her dependent in 2015. Jasmine is a resident but not a citizen of the United States. She lived in Aishwarya’s home from June 15 through December 31, 2015. Aishwarya provided more than half of Jasmine’s support for 2015.

a. Is Aishwarya allowed to claim a dependency exemption for Jasmine for 2015?

b. Would Aishwarya be allowed to claim a dependency exemption for Jasmine for 2015 if Aishwarya provided more than half of Jasmine’s support in 2015, Jasmine lived in Aishwarya’s home from July 15 through December 31 of 2015, and Jasmine reported gross income of $5,000 in 2015?

c. Would Aishwarya be allowed to claim a dependency exemption for Jasmine for 2015 if Aishwarya provided more than half of Jasmine’s support in 2014, Jasmine lived in Aishwarya’s home from July 15 through December 31 of 2015, and Jasmine reported gross income of $2,500 in 2015?

Explanation / Answer

IRS has provided four tests for a child to be a qualifying child to get the dependency exemption, which are as follows:

Relationship — child or stepchild, foster child, sibling or stepsibling, or a descendant of one of these.
Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
Age — must be under the age of 19 at the end of the tax year or be permanently and totally disabled at any time during the year.
Support — did not provide more than one-half of his/her own support for the year

a. Yes, based upon the above tests Aishwarya is allowed to claim a dependency exemption for Jasmine for 2015,as Jasmine is 17 years old, her step-daughter and lived with Aishwarya in her residence for more than half of the year and she has provided for more than half of Jasmine’s support for 2015.

b. No, Aishwarya would not be allowed the exemption as other tests are satisfied but Jasmine did not live with her for for more than half the tax year.

c. No, Aishwarya would not be allowed the exemption as other tests are satisfied but Jasmine did not live with her for for more than half the tax year.

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