For each of the following independent cases, list the dependent(s), if any, that may be claimed by
Question:
For each of the following independent cases, list the dependent(s), if any, that may be claimed by the taxpayer in 2020.
a. Kanga is a single mother. She provides all the support for her 12-year-old daughter Roo who lives with her and who earned $6,200 modeling during the Christmas season. For all of 2020, Kanga’s household also included Piglet, Kanga’s niece. Piglet, age 20, is not a student, but she worked part-time and earned $8,250.
b. During 2020, Snow White (age 67) and Dopey (age 69) her current husband furnished more than 50% of the support of the following individuals:
· | Sleepy, the stepson (age 18), who lived with her all year and earns $8,500 as a dance instructor. He dropped out of school a year ago. |
· | Grumpy, the cousin (age 70), who does not live with her. He has no income for 2020. |
· | Doc, the brother-in-law (age 66), who does not live with her and earned $4,500 in 2020. |
· | Evil Queen, the friend (age 52), who lived with her all year, earned $3,950 in 2020. |
c. Papa and Mama Bear are married and are under 65 years of age. During 2020, Baby Bear, their 25-year-old son lives with them. Baby Bear earns $10,000 from a part-time job, 65% that he uses for his own food, clothing, and rent paid to his parents. Papa & Mama Bear also provide 70% of the support of Mama's father, Grandpa, who is 93, lives in the next town, and has no taxable income. They also provide 100% of the support of Papa’s cousin, Mike (age 40), who lives next door and has no income.
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws