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!)

2James 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.

Everyone in the U.S. is eligible to receive a “personal exemption” of $3,950 on their taxes. However, if they don’t support themselves (such as children), their personal exemption can be transferred to the person who does support them (such as their parents), by claiming them as dependents.

If you have people in your household that you support, each one may be considered a dependent and can reduce your taxable income by $3,950. However, there are specific rules that must be met in order for this to occur.

As already specified in the question that the other dependency tests are met, Mr. B's Son is Mr.B's dependent.

Further, Mr. B provides $4,500 to his son as the only other support.It means Mr B's Son is dependent on Mr. B.

Thus,

Mr. B is entitled to claim $ 3,950 of his oqn and $3,950 of his son as a dependent on his current-year return.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.