Kyle and Liza are married and under 65 years of age.During 2014,they furnish more than half of the support of their 19-year old daughter,May,who lives with them.She graduated from high school in May 2013.May earns $15,000 from a part-time job,most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father,who died on January 3,2014,at age 90,has for many years qualified as their dependent.How many personal and dependency exemptions should Kyle and Liza claim?
A)Two
B)Three
C)Four
D)Five
E)None of these

Question

Quizplus · Accepted Answer

Four (Kyle,Liza,cousin,and the father).May cannot be claimed because she is not a qualifying child and is subject to the gross income test.Kyle's cousin does not meet the relationship test but is a member of their household.It is assumed that Liza's father,as was true in the past,qualified as a dependent up to the point of death.

Kyle and Liza Are Married and Under 65 Years of Age.During