1. In each of the following independent cases determine the total number of depe
ID: 2450915 • Letter: 1
Question
1. In each of the following independent cases determine the total number of dependency exemptions Tom may claim. Assume that Tom is single, 32 years old and any dependency test not mentioned has been met. Explain how you determined your answer. a. Tom provides 80% support of his nephew (age 17), who lives with him. During the year the nephew has gross income of $4,700 and is a full time student. b. Tom and his two brothers each provide 15% of the support of their mother. Their mother derives the remainder of her support from Social Security benefits of $11,300. c. Tom provides 60% support of his mother, age 69. His mother received dividend income of $3,000 and Social Security benefits of $5,500
Explanation / Answer
Answer:a. One. He cannot claim a dependency exemption for his nephew because a nephew is subject to the gross income test. Only a qualifying child does not have to meet the gross income test. He can claim a personal exemption for himself.
Answer:b Two. If the brothers execute a mutiple support agreement,Tom may take an exception for his mother.
Answer:c Two. He can claim a dependency exemption for his mother and a personal exemption for himself. His mother's gross income does not exceed $3,900. Because his mother's Social Security is not taxable, it is not included in gross income.
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