Question

In: Accounting

Andrew (39) and Lacy (40) are married, and both are the parents of Zach (9). They...

Andrew (39) and Lacy (40) are married, and both are the parents of Zach (9). They all lived together until Lacy moved out on September 25. Zach stayed in the home with Andrew. Lacy earned $42,000 during the year, and Andrew earned $33,000. Andrew and Lacy file separate returns. All are U.S. citizens, and all of Zach's support is provided by both of his parents. If each one tries to claim Zach as a dependent, who is entitled to do so?

Solutions

Expert Solution

solution :
given that
Andrew (39) and Lacy (40) are married, and both are the parents of Zach (9).
also given that
They all lived together until Lacy moved out on September 25. Zach stayed in the home with Andrew.
Lacy earned $42,000 during the year, and Andrew earned $33,000.
its also clear that
Andrew and Lacy file separate returns.
from the given data we can clealy state that zach is dependent on andrew
They can't guarantee similar advantages for the kid. Be that as it may, they might have the capacity to part the advantages. Here is the means by which it works:

For separated or isolated guardians or guardians who live separated, the custodial parent (Andrew), if qualified, or other qualified individual who the youngster lived with for the greater part the year, can guarantee head of family unit recording status, the credit for tyke and ward care costs, the prohibition for ward care benefits, and the earned pay credit.

The non-custodial parent (Lacy), whenever permitted by separation announcement or assent of the custodial parent (Andrew) on frame 8332 or comparable marked explanation, can guarantee the reliance exclusion and kid charge credit. For post-2008 separation announcements or understandings, frame 8332 or comparable marked proclamation is required. The youngster tax cuts can't be part some other way.


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