Dwight, 45 and unmarried, earned wages of $212,100 from his job. He had itemized deductions of $17,000. Dwight supported his dad, Michael. Michael lives in his own apartment, earned $6,000 from dividends, and receives 70% of his support from Dwight. Dwight fully supported his sister, Fannie, 16, in 2020. She was a junior in high school and lived with Dwight. She had a part-time job where she earned $13,800. Dwight also supported his son, Philip, 20, who is a junior in college. He earned $4,000 from a part-time job and $3,000 in interest income. Dwight provided most of his support.

1. Is Michael a Qualifying Child? Is Michael a Qualifying Relative?
2. Is Fannie a Qualifying Child? Is Fannie a Qualifying Relative?
3. Is Philip a Qualifying Child? Is Philip a Qualifying Relative?
4. Calculate Philip’s 2020 Taxable Income.
5. Calculate Dwight’s allowable child and dependent tax credit

Answer rating: 100% (QA)

A Michael does not meet the requirements of either qualifying child or qualifying relative He could ... View the full answer