Evan and Eileen Carter are husband and wife and file a joint return for 2015.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 these

Question

Quizplus · Accepted Answer

The Carters can claim three dependency exemptions: one for Pamela, as she is a qualifying child under the age of 24 and a full-time student; one for Belinda, as she is a qualifying relative (Evan's grandmother) who they fully support; and one for Peggy, as she is a qualifying relative who lives with them and they provide more than half of her support.

Evan and Eileen Carter Are Husband and Wife and File