Question

Johnson, a computer engineer, and spouse, who is unemployed, provide more than half of the support for their child, age 23, who is a full-time student and who earns $7,000. They also provide more than half of the support for their older child, age 33, who earns $2,000 during the year. How many exemptions may the Johnsons claim on their joint tax return?

a)	One personal and two dependency.
b)	Two personal and two dependency.
c)	One personal and one dependency.
d)	Two personal and one dependency.

Answer 1

One exemption for each qualified dependent is available.

Tax payer's spouse cannot be claimed as a dependent but can be claimed as personal exemption.

Condition for qualify as a dependent.

1. Dependent cannot be claimed as a dependent in any other person's tax return.

2. Married person should file a joint return to avail personal exemption.

3. person must be a US citizen.

4. The child must be taxpayers's son, stepchild, foster child of any of them. (adopted child is treated as natural child.)

5. Age of child must be under 19 at the end of taxpayer and younger than the taxpayer and spouse.

6. Age of a full time student must be under 24 years at the end of tax year and must be younger than the tax payer and spouse.

7. any of age if permanently disabled.

8. Child must have lived with taxpayer for more than half of the year.

9. Child cannot provided more than half of his / her own support during the tax year.

So, in reference of above conditions, johnsons can claimed personal exemption for his spouse if they are filing joint return and can claim one dependency exemption for their child who is full time student and under age 24 and provided more than half support by johnsons but he can not avail any dedendency exemption for their 33 years aged child because he is dis qualify on front of age condition.

So, Johnsons can avail two personal and one dependency exemption in his tax return. so option (d) is the correct answer.