John and Mary have two children,Anna,age 16,and Tammy,age 21.Anna works after school and earned $4,000 in 2013.Tammy works 30 hours per week and is a part-time student at the local community college.She earned $8,400 in 2013.John's mother also lives with them;she receives $7,800 in Social Security and $2,000 in interest income from some bonds.John and Mary provide over $10,000 towards her support.How many dependency exemptions may John and Mary claim on their joint tax return?

Question

Quizplus · Accepted Answer

John and Mary can claim two dependency exemptions for their two children, Anna and Tammy. However, they cannot claim John's mother as a dependent because she had more than $3,950 in gross income (Social Security plus interest income) and John and Mary provided less than half of her support ($10,000 in support is less than half of her income). Therefore, the correct answer is B, 2 dependency exemptions.

John and Mary Have Two Children,Anna,age 16,and Tammy,age 21