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Michelle provides more than half the support of her son, Andrew,who does not live with...

Michelle provides more than half the support of her son, Andrew, who does not live with her. Andrew is 26 and is a full-time student in graduate school. He earns $2,000 per year from his first part-time job and $500 from a second part-time job while receiving a scholarship of $10,000 to cover tuition. He also receives nontaxable interest from city bonds in the amount of $6,000. What is Andrew's gross income, and is he considered Michelle's dependent?

a.Gross income is $2,500, and he meets the dependency test.

b.Gross income is $6,000, and he meets the dependency test.

c.Gross income is $2,500, but he does not meet the dependency test.

d.Gross income is $16,000, and he does not meet the dependency test.

e.Gross income is $18,500, and he does not meet the dependency test.

Solutions

Expert Solution

C) Gross Income is $2500, but he does not meet the dependency Test.

Calculation of Gross Total Income of Andrew's:

Gross Income = Earning from Part time Job

Gross Income = $2000 + $500

Gross Income =$2500

* Scholarship received for Tution/ education purpose is exempted.

* Interest Received from Bond is exempt as it is already written that "nontaxable Interest"

* Andrew does satisfied the condition of dependency test as it is stated that child must be younger than 24 years old, regardless to the income, if he/she is full time student in college

ekkarill92 answered 2 years ago
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