2. Tom, Mary & Bill help supporttheir elderly mother, Alice who lives in an apar
ID: 2610932 • Letter: 2
Question
2. Tom, Mary & Bill help supporttheir elderly mother, Alice who lives in an apartment. Alice has $ 3,800 in gross income and for 201$ 16,000 was spenton her support, as follows: From Alice's funds From Bill From Mary From Tom $1000 1.000 $ 5.000 $ 3,000 Is Alice considered to be a dependent underthe qualifying relative rule by any of her children? If so, who can claim her and why? Would your answerchange if Alice has $ 4,200 in 2017 gross income? 3. Harold provides overhalf of the supportforhis child Nancy Nancy is age 26, is a full time student and lives with Harold. Nancy earns $4,100 in 2017. May Harold claim a dependency exemption for Nancy in 2017? Explain.Explanation / Answer
Ans 2. Alice can be considered to be a dependent if following are satisfied
. Alice lives with any of her children all year
. She is a US citizen or resident of Canada or Mexico
. Gross income does not exceed $4000
. More than half of total support provided by any children to Alice then he / she can Claim her
As Alice's gross income is less than $4000 she qualifies the condition and Mary 's support is more than other children so she will claim Alice
Yes answer would have been different had $4200 been the gross income in which case she wouldn't be considered as dependent
Ans 3 No Harold cannot claim dependency exemption because Nancy does not meet the age test, which says your "qualifying child" must be under age 19, or 24 if he is a full-time student for a least five months out of the year, and she cannot be considered a "qualifying relative" since her income is more than $4,000.
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