Question: A single client provides more than half the support for her parents, including the rent on their apartment. They are both in their 70s and

A single client provides more than half the support for her parents, including the rent on their apartment. They are both in their 70s and collect social security benefits. The mother has no other income. The father has income of about $18,000, consisting mostly of a pension and a small RMD ( Required Minimum Distribution) from an IRA ( Indvedule Retirement Account). They file jointly when they have a filing requirement. Given their high standard deduction and that none of their social security is taxable, they don’t have a filing requirement in 2018. The client would like to claim her mother as a dependent. By doing so she could file as head of household (HOH) and claim the other dependent credit (ODC). Assuming she can prove support, can she claim her mother? If so, would the parents continue to file jointly? United States Taxation

Step by Step Solution

★★★★★

3.41 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Based on the information provided it appears that the client may be able to claim her mother as a dependent and file as head of household HOH potentia... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Fergus and FelicityVine live in the North East of England. They own a house valued around 390,000 and this is owned as a beneficial joint tenancy. They have been married for 20 years and have no...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Which of the following is an example of unearned income? Compensation received by a self-employed, freelance writer for services provided. Interest earned on a savings account. Tips. Wages from a...

A single client provides more than half the support for her parents, including the rent on their apartment. They are both in their 70s and collect social security benefits. The mother has no other...

Need help with 50 MCQs on 1040s. Need 70% to pass. Serious inquiries only. Thank you. Exam in Progress Exam DT1TG16 - 1040 Income Tax Preparation Questions 50 Passing Score 70% 1. Available filing...

Today is January 1,2020 INTRODUCTORY DATA Grayion and Tally Alexander have come to you, a financial planner, to help them transition into retirement. They have met most of their financial goals,...

1. The market price per share of Zinc Corporation is $150 and earnings per share is $20. What is the price/earning ratio of Zinc Corporation? A. 10.25 B. 7.5 C. 2.25 D. 15 2 Loss incurred as a result...

Debra wants to know if her sister can be her qualifying child.Which of the following is not a test to be a Qualifying Child? Select one: a. The child must be under age 19 at the end of the year or...

Comment on the following unusual lottery events, including a probability assessment. a. On September 11, 2002, the first anniversary of the 9/11 attack on the World Trade Center, the winning number...

Suppose I am obligated to buy a house from Mark in a year. I consider the obligation similar to a forward contract. The fair value of the house is $1 million today Assume that today is April 30,...

Political behaviour is defined as: Activities related to government and elections Behaviour that follows organizational policies and procedures Activities that influence, or attempt to influence, the...

Wet lumber of the type in figure is slowly dried from an initial total moisture content of 50 wt% to a moisture content in equilibrium with atmospheric air at 25?C and 40% relative humidity....

Slabs of filter cake with a bone-dry density of 1,600 kg/m3 are to be dried from an initial free-moisture content of 110% (dry basis) to a final free-moisture content of 5% (dry basis) batchwise in...

The following information was taken from the financial statements of Coca-Cola and PepsiCo (dollar amounts in millions). Tax rates for Coca-Cola and Pepsi were 22 percent and 27 percent,...

At a total cost of $710,000, Abbott Corporation acquired 50,000 shares of Costello Corp. common stock as a long-term investment. Abbott Corporation uses the equity method of accounting for this...

During 2010, its first year of operations, LandStar Corporation purchased the following securities classified as available-for-sale securities: (a) Record the purchase of the investments for cash.(b)...

compose an area of strength statement for Ivans knowledge of the product and processes excells when it comes to the average. Ivan makes sure he is safe and that product does not get damaged while...

Quince Corporation has taxable income of $285,000 for its calendar tax year. Calculate the corporations income tax liability for 2020 before tax credits. $____________

Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...

B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 2020, the corporation accrues interest of $4,000 on a loan from...

Patty's Pancakes orders pancake mix once a week. The mix is used up by the end of the week, at which point more is reordered. Each time Patty orders pancake mix, she spends about a half hour of her...

Go back to problem 12 and build a financial planning model based on percentage of sales for Eagle Sports Supply using a spreadsheet similar to Figure 19.2. a. Assume 2013 sales grow at the...

A firm offers terms of 2/15, net 30. Currently, two-thirds of all customers take advantage of the trade discount; the remainder pay bills at the due date. a. What will be the firm's typical value for...