Question

QUESTION 7 Same facts as Question 6. What is the Baker taxable income? QUESTIONS Same facts as Question 6. What is the Chin taxable income? QUESTION 9 Jarel and Jennifer have been married 30 years and have filed a joint return every year of their marriage. Their three daughters, Jade, Lindsay, and Abbi, are ages 12, 17, and 22 respectively and all live at home. None of the daughters provide more than half of her own support. Abbi is a full-time student at a local university and does not have any gross income. How many of the daughters qualify as dependents of Jamel and Jennifer? QUESTION 10 Jamel and Jennifer have been married 30 years and have filed a joint return every year of their marriage. Their three daughters, Jade, Lindsay, and Abbi, are ages 13. 16 and 21 respectively and all live at home. None of the daughters provide more than half of her own support. Abbi is a full-time student at a local university and does not have any gross income. Abbi is married. She and her husband live with Jamel and Jennifer while attending school and they file a joint return. Abbi and her husband reported a $1,000 tax liability on their tax return. How many daughters qualify as dependents of Jamel and Jennifer?

Answer 1

In order to qualify as a dependent child, the following test need to be passed:

1) Related and lives with : The child must be related (own child, step child, grandchild, sibling, adopted child, foster child etc) AND Live with the taxpayer for over half year

2) Support: Child must not contribute more than 50% to his support

3) Joint Return: Dependent must not be filling a joint tax return for the year (with his/her spouse) unless the joint return was filled solely for a refund of all taxes paid or withheld for the taxable year (i.e. tax is zero)

4) Age limit: Age must be less than 19 years as of the close of the year ( or less than 24 years if a full time student for a full time student for at least 5 months during the year ) ; any age if permanently & totally disabled

Answer to the required questions is as follows:

Question 9

1) Related and lives with : This test is passed by all the three daughters as all of them are own child of Jamel and Jennifer and all of them stay with Jamel and Jennifer.

2) Support: As none of the daughters provide more than half of their own support, this test is also passed by all three daughters

3) Joint Return: As none of the daughters file joint return, even this test is passed by all three of them

4) Age limit: Jade and Lindsay are less than 19 years of age so they pass this test as well but Abbi is of 22 years. However since Abbi is a full time student and her age is less than 24 years, so even she qualify as a dependent.

Thus all three daughters have qualified to be dependent of Jamel and Jennifer.

Question 10

All facts of this question is same as to the previous question except for the fact that Abbi files a Joint return with her spouse and the return is not filled to claim refund of all the taxes paid or withheld.

Thus Abbi does not pass the Joint return test and she cannot be a dependent to Jamel and Jennifer.

Jade and Lindsay still qualifies as dependent of Jamel and Jennifer.

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