Question

1. Which of the following individuals qualifies as a dependent of John Smith?

1. A 20-year-old son who earned $4,900 during the Christmas season but was unemployed the remainder of the year. He was supported by John Smith
2. A 10-year-old cousin living with John Smith’s parents but supported by John Smith
3. A seven-year-old orphan (not adopted by John Smith) who has lived in his home the entire year and has been supported by him
4. A 25-year-old married daughter who filed a joint return on which there was a tax liability with her husband. She is a student, had no income, and was supported by John Smith

1. The Fords are filing a joint return and have two sons, age 8 and 23. The23-year-old is a full-time student at Loyola University, earned $4,500 during the year, and received a scholarship valued at $14,000. The Fords furnished $9,500 for his support

The Fords also contributed $6,000 to the support of Mrs Ford’s mother, Mrs Lincoln, who is age 66 ad lives in her own house. Mrs. Lincoln’s personal income of $9500, which includes SS benefits of $4800, was expended in maintaining her home.

The Fords dependents include:

1. Both sons and Mrs Lincoln
2. Mrs Lincoln
3. The 8-year-old son
4. Both sons

Answer 1

Soln 1:

a. To qualify as a child dependent , he must be under the age of 19 at the end of the tax year, or under the age of 24 if full time student for atleast five months of the year.. Since his son is neither less than 19 years of age nor a full time student, he does not qualify for child dependent. For qualifying as dependent relative, he should have made less than $4200 in gross income during the year. Since he has made more than $4200, he cant be qualified relative.

b. A child to qualify as a taxpayer's dependent the child has to be related as his child or stepchild(whether by blood or adoption), foster child, sibling or stepsibling or a descendant of one of these. The 10 year old cousin does not fit into any of these persons mentioned. Hence the cousin is not qualified as a child dependent. Also he is not living with John Smith so not a dependent.

c. Seven year old orphan is not adopted by Smith. An orphan to be qualified as child dependent has to be an adopted child by the taxpayer, hence the seven year old orphan is not qualified as dependent child. But he has been a member of the household for the entire year and has been supported by John Smith, hence a dependent.

d. A married child should not file a joint return for the year, unless they're only filing to claim a refund of taxes withheld and also there must not be any tax liability if they filed separately. As his daughter is more than 24 years old and also she has filed joint return with tax liability, Smith's daughter is not a qualified dependent.

Solution 2: Mrs. Lincoln has more than $4200 as her gross income and Fords contributed less than 50% of total support to Mrs,Lincoln. Hence she is not a dependent.

23 year old son is also not qualified as dependent even though he is a full time student, Fords have not provided more than half of his son's support.

Only the 8 year old son is Fords dependent.