1. Mr. B’s 19-year-old son receives a $6,000 scholarship to X University. In the

Question

1. Mr. B’s 19-year-old son receives a $6,000 scholarship to X University. In the same year, Mr. B provides $4,500 to his son as the only other support. The other dependency tests are met. Is Mr. B entitled to claim his son as a dependent on his current-year return? Explain your answer legally ( sec from IRC!)

2. James and Edna Smith are a childless married couple who lived apart for all of the current year. On December 31, they were legally separated under a decree of separate maintenance. Which of the following is the only filing status choice available to them for the current year? Explain your answer legally (sec from IRC)

3. Mrs. W’s husband died in Year 1. She has not remarried and has maintained a home for herself and her dependent son, whose personal exemption she can claim. In the summer of Year 3, the son was killed in an automobile accident. What is Mrs. W’s filing status for Year 3? Explain your answer legally (sec from IRC)

Explanation / Answer

1. Mr B can claim his son as dependant is his annual return as his son is under 24 years age and student, his earned income is less than $6200 and unearned income is less than $1000.

2. The marriage status of a couple depends on the status on the last day of the year. As James & Edna got legally separated on 31st Dec, theu will be treated as divorced. Both of them needs to file individual return.

3.. Assuming Mrs W's son was less than 19 years of age , Mrs W can claim the filing status of Qualifying Widower with dependent child for the year 2 & 3 after the death of her husband in year 1. Same satus can be maintained if the child who qualifies her for this filing status dies during the year. She must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she died.

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