Question

Concerening the dependency exemptions identify each statement by one of these categories:

A. Could be a qualifying child

B. Could be a qualifying relative

C. Could be either a qualifying child or a qualifying relative

D. Could ne neither a qualifying child nor a qualifying relative

______________________________________________________

1. A niece who lives with a taxpayer, is 20 years old and earns $5,000 and is a full time student

2. A half brother who lives with a taxpayer

3. A cousin who does not live with the taxpayer

4. A stepdaughter who does not live with taxpayer

5. An ex husband where the divorce happened last year and who lives with taxpayer

Please indicate which letter(a,b,c,d,) matches with problems (1,2,3,4,5) and explain. Please make sure all numbers have been matched

Answer 1

A. Could be a qualifying child-2.A half brother who lives with tax payer

Reason:A half brother could be considered as a qualifying child as he lives with a taxpayer. One of the condition

Of qualifying child is that the child(half brother) should live with taxpayer for more than 6 months.

B. Could be a qualifying relative-4. A stepdaughter who does not live with taxpayer

Reason: A step daughter can be a qualifying relative as she is not a qualifying child of tax payer because she doesn't live with taxpayer. For being a qualifying relative you don't have to live with taxpayer.

C. Could be either a qualifying child or a qualifying relative- 1. A niece who lives with a taxpayer, is 20 years old and earns $5,000 and is a full time student

Reason:As niece is below 24 years age as a full time student and lives with a taxpayer and there is also a niece income support therefore could be a qualifying child instead of qualifying relative. Either means any one of the above but not both. In this niece will be a qualifying child.

D. Could ne neither a qualifying child nor a qualifying realtive-3. A cousin who does not live with the taxpayer

Reason:Cousin can neither be a qualifying child nor a qualifying relative as cousin is not closely related to taxpayer.

PLEASE UPVOTE IF YOU FIND THE SOLUTION HELPFUL