Question

For the six years prior to his death, Jesse lived with his daughter, Hannah. Because he had no source of income, Jesse was supported by equal contributions from Hannah and his two sons, Bill and Bob. At Jesse’s funeral, his surviving children are amazed to discover that none of them has been claiming Jesse as a dependent. Upon the advice of the director of the funeral home, they decide to divide among themselves the dependency exemptions for the past six years. Multiple Forms 2120 are executed, and each of the three children files amended returns for different past years. As Jesse died late in the current year, none of the children plans to claim him for this tax year. Comment on the tax expectations of the parties involved.

Answer 1

Claiming dependents can help you save thousands of dollars on your taxes. Yet many of us are not aware of who in our family may qualify as our dependent.

There are two types of dependents, each subject to different rules:

• A qualifying child
• A qualifying relative

Although there are limits to specific dependent credits, there's no maximum number of dependent exemptions you can claim. If a person meets the requirements for a qualifying child or relative, you can claim him or her as a dependent.

if you are single, claiming your parent as a dependent could let you file your tax ... If you paid your parent's medical expenses and provided more than half of ... Bear in mind that you can only deduct medical expenses, including your ... tax-exempt interest), none of your parent's Social Security is taxable

You and your family members can claim tax exemption of up to Rs 25,000. ... 30,000, if tax payer is a senior citizen. You can claim extra exemption of up to Rs 25,000 for your parents. If your parents are senior citizen, you can claim tax exemptions for amount up to Rs 30,000.