Question

Evan and Eileen Carter are husband and wife and file a joint return for 2019. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 25), who is a full-time medical student. Pamela receives a $5,000 scholarship covering her tuition at college. Evan and Eileen furnish all of the support of Belinda (Evan's grandmother), who is age 80 and lives in a nursing home. They also support Peggy (age 66), who is a friend of the family and lives with them. How many dependents may the Carters claim?

Answer 1

Answer:

The correct answer is b) four.

Step-by-step explanation:

Evan and Eileen Carter must submit a separate statement as dictated by the requirements for the claim.

In the case of the daughter, she no longer meets the requirement of a qualified child because she is over 24 years old; but qualifies as an eligible relative, and also, the income of her scholarship is not enough, so she needs the help of her parents to cover her expenses.

The couple also provides support in all expenses of Evan's                    great-grandmother; although Belinda lives in an asylum, the Carter can claim the exemption since, for qualified relatives, they do not ask as a mandatory requirement that they live in the same place.

And finally, Peggy cannot request an exemption since she is not a qualified relative, so she does not fall within the exceptions to claim, even if she lives in Evan and Eileen Carter´s house.

Therefore, the Carter can claim four dependency exemptions, one for each person that are Evan, Eileen, Pamela, and Belinda.

I hope this information can help you.