Julia provides more than 50 percent of the support for three individuals: Theresa,an unrelated child who lives with Julia all year long; Margaret,Julia's cousin,who lives in another city; and Emma,Julia's daughter,who lives in her own home.Each of the potential dependents earned less than $4,050.How many dependency exemptions can Julia claim on her 2017 tax return?
A)0
B)1
C)2
D)3

Question

Quizplus · Accepted Answer

C)(Theresa,Emma)Assuming all other tests are met,Theresa qualifies as Julia's dependent.A person who lives with the taxpayer all year long need not be related to the taxpayer.Margaret does not qualify as Julia's dependent.She is not related for tax purposes and,therefore,can't be Julia's dependent unless she lives with Julia all year long.Emma qualifies as Julia's dependent.Since Emma is Julia's daughter,she is related for tax purposes and need not live with Julia to be claimed as Julia's dependent.Therefore,Julia has two dependents.

Julia Provides More Than 50 Percent of the Support for Three