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 $3,950. How many dependency exemptions can Julia claim on her 2014 tax return?

Question

Quizplus · Accepted Answer

Julia can claim dependency exemptions for both Theresa and Emma, as they both meet the criteria of earning less than $3,950 and receiving more than 50% of their support from Julia. Margaret is not eligible because she is a cousin and not a qualifying relative under the IRS guidelines. Therefore, Julia can claim two dependency exemptions on her tax return.

Julia Provides More Than 50 Percent of the Support for Three