Question

Jane is 20 years old and is a sophomore at Lake University. She is a full-time student and does not have any gross income. Jane spends the holidays and summers at home with her parents. Her total support for the current tax year is $30,000, including a scholarship for $5,000 to cover her tuition. Jane used $12,000 of her savings, and her grandparents provided $13,000. Which of the following statements is true regarding identifying Jane as a dependent? a. If Jane’s parents (rather than her grandparents) provided the $13,000, then they would not be able to claim Jane as a dependent because Jane provided more than half of her own support. b. Jane’s grandparents can claim her as a dependent because Jane did not provide more than half of her own support. c. Jane’s grandparents cannot claim her as a dependent because Jane provided more than half of her own support. d. Jane is no one’s dependent because she provided more than half of her own support.

Answer 1

Answer = c) Jane’s grandparents cannot claim her as a dependent because Jane provided more than half of her own support.

Explanation:

Jane does not qualify as dependent for her grandparents as a qualifying child or relative . With respect to her grandparents, jane's scholarship is treated as support and thus jane's portion of her support was $17000 out of $30000 total support which is 57% ($17000/$30000)

As her portion of support is more than 50% of the total support her grandparents cannot claim her as a dependent.

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