The Hutters filed a joint return for 2018. They provide more than 50% of the support of Carla, Ellie, and Aaron. Carla (age 18) is a cousin and earns $2,800 from a part-time job. Ellie (age 25) is their daughter and is a full-time law student. She received a $7,500 scholarship for tuition from her law school. Aaron is a brother who is a citizen of Israel but resides in France. Carla and Ellie live with the Hutters. How many dependents can the Hutters claim?
a.None
b.One
c.Two
d.Three
The Hutters can claim two dependents- Carla and Ellie, as Aaron meets neither the residency nor citizenship requirement but Carla is a qualifying relative and is under the age of 24, but Ellie is above 24 but is a qualifying relative as scholarship is non-taxable.
Thus the answer is c. Two
The Hutters filed a joint return for 2018. They provide more than 50% of the support...
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