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 the above.

Question

Quizplus · Accepted Answer

Kyle and Liza can claim two personal exemptions for themselves. They can also claim one dependency exemption for their daughter, May, and one for Kyle's cousin, who they provide more than half of the support for. Finally, they can claim one dependency exemption for Liza's father, who passed away during the year but still qualified as their dependent for the portion of the year he was alive (since he was alive for more than half the year, they can claim the full year's exemption). This brings the total to four exemptions.

Kyle and Liza Are Married and Under 65 Years of Age