Evan and Eileen Carter are husband and wife and file a joint return for 2014. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 25), who is a full-time medical student. Pamela receives a $5,000 scholarship covering her tuition at college. They furnish all of the support of Belinda (Evan's grandmother), who is age 80 and lives in a nursing home. They also support Peggy (age 66), who is a friend of the family and lives with them. How many dependency exemptions may the Carters claim?
A) Two.
B) Three.
C) Four.
D) Five.
E) None of the above.

Question

Quizplus · Accepted Answer

The Carters can claim a dependency exemption for Pamela because they provide more than half of her support and she is a full-time student under the age of 24. They can also claim a dependency exemption for Belinda because they provide all of her support and she is a relative who meets the dependent criteria. They cannot claim a dependency exemption for Peggy because she is not related to them and does not meet the criteria for a dependent. Therefore, the Carters may claim three dependency exemptions: one for Evan, one for Eileen, and one for either Pamela or Belinda.

Evan and Eileen Carter Are Husband and Wife and File