For tax year 2018 determine the number of dependents in each of the following in
ID: 2329455 • Letter: F
Question
For tax year 2018 determine the number of dependents in each of the following indpendent situations:
a.) Leo and Amanda (ages 48 and 46 respectively ) are husband and wife and furnish more than 50% of the support of their two children , Elton (age 18) and Trista (age 24). During the year , Elton earns 4,500 providing transportation for elderly persons with disabilities, and Trista receives a $5,000 scholarship for tutiton at the law school she attends.
b.) Audry (age 45) was divorced this year. She maintains a household in which she , her ex husband (clint) and his mother (olive) live and furnishes more than 50% of their support. Olive is age 91 and blind.
c.) Crystal age 45 furnishes more than 50% of the support of her married son, Andy (age 18) and his wife , paige (age 19) who liv with her. During the year, Andy earned 8,400 from a part time job. All parties live in Iowa (a common law state)
d.) Assume the same facts as in part (c) except that all parties live in wsshington ( a community property state).
please answer all questions and if necessary show how you got the answer
Explanation / Answer
A. Leo and amanda will file under married filing jointly for $12400 with two dependents exemption $3950 each.
Elton may claim $4850 deduction.
B. Audry will file as head of household for $9100 with two dependents with exemption of $3950 each.
C.one personal & two dependency exemption as Andy is under 19 age child so he will not be considered for gross income test. Whereas paige who lives in common law state has no income splitting option thus meet gross income option as a Qualifiying relative.
D. One personal & one dependency exemption. Andy is a qualifying child under 19 age. Paige is treated as having $4200 gross income thus the doesn't meet gross income test and is not a qualifying relative.