The Hutters filed a joint return for 2014. They provide more than 50% of the support of Carla, Melvin, and Aaron. Carla (age 18) is a cousin and earns $2,800 from a part-time job. Melvin (age 25) is their son and is a full-time law student. He received from the university a $3,800 scholarship for tuition. Aaron is a brother who is a citizen of Israel but resides in France. Carla and Melvin live with the Hutters. How many personal and dependency exemptions can the Hutters claim on their Federal income tax return?
A) Two.
B) Three.
C) Four.
D) Five.
E) None of the above.

Question

Quizplus · Accepted Answer

The Hutters can claim four exemptions: two personal exemptions for themselves and two dependency exemptions for Carla and Melvin. Carla qualifies as a dependent because she is a relative and earns less than the exemption amount. Melvin qualifies as a dependent because he is a full-time student under 24. Aaron does not qualify because he is not a U.S. resident.

The Hutters Filed a Joint Return for 2014