Wael worked for a local bank and made $70,000 during 2019. Wael has lived with his...

Wael worked for a local bank and made $70,000 during 2019. Wael has lived with his

financee, Eman, and her two children all year in his home. Wael provided 100% of

the household support. Eman is not required to file, and does not file, a tax return this year.

Eman and her two children lived with Wael for the entire 2019.

What are the various tests that Eman and her two children must meet to be claimed

by Wael. How this will affect Wael’s income tax liabilities.

Expert Solution

Eman and her two children can be claimed as dependent if they pass some of the tests.The various tests that Eman and her two children must meet to be claimed by Wael:

1. Earned less than $4200 in taxable income in 2019. Here we can see, Eman is not an earning source.

2. is not a "qualfying child" of a taxpayer. IRS has specified rules based on relationship,age,residency and support. Here, Eman's two children fall under qualifying child. And Wael is providing care to them as they are unable to take care for themselves.

3. Did not provide their own support. Here, Wael is providing 100% household upport.

4. Lived as household member for the whole year. Here, Eman and her two children are living with Wael for the whole year.

Looking above, we can conclude Eman and her two children are dependent on Wael.

This dependency of Eman and her two children can be used by Weal in calculating his income tax liabilities. Claiming them dependent on himself, Wael can claim dependency exemption as he supports them financially. This in turn will reduce his taxable income and save his money.

ekkarill92 answered 2 years ago

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