Tony supports the following individuals during the current year: Miranda,his former mother-in-law who lives in her own home and has no gross income; his cousin,Jeff,age 23,who is a full-time student,earns $7,000 during the year,and lives with Tony all year long; and Matt,age 22,who is Tony's brother,is a full-time student living on campus and earns $8,000 during the year.How many dependency exemptions may Tony claim?
A)0
B)1
C)2
D)3

Question

Quizplus · Accepted Answer

C)Miranda qualifies as Tony's dependent.She is related to him for tax purposes and does not have to live with him.Jeff earns too much gross income (more than the personal exemption amount)and cannot qualify as Tony's dependent.Although Matt earns more gross income than the personal exemption amount,he is considered Tony's qualifying child and,therefore,does not have to meet the gross income test.Therefore,Tony can claim two dependents.

Tony Supports the Following Individuals During the Current Year: Miranda,his