William and Charlotte Collins divorced in November of year 1. William moved out and Charlotte remained in their house with their 10-month-old daughter Autumn. Diana, Charlotte's mother, lived in the home and acted as Autumn's nanny for all of year 1. William provided 70% of Autumn's support, Diana provided 20%, and Charlotte provided 10%. When the time came to file their tax returns for year 1, William, Charlotte, and Diana each wanted to claim Autumn as a dependent. Their respective AGIs for year 1 were $50,000, $35,000, and $52,000. Who has priority to claim Autumn as a dependent?
A) William.
B) Charlotte.
C) Diana.
D) They must negotiate amongst themselves.

Question

Quizplus · Accepted Answer

When a child is a qualifying child of multiple parties, parents have priority over grandparents. Because Charlotte lived with Autumn longer, she has preference over William. AGI is not used as a tiebreaker in this case because the issue was resolved after application of the first two rules.

William and Charlotte Collins Divorced in November of Year 1