Question

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.

Answer 1

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