Kyle and Liza are married and under 65 years of age.During 2012, they furnish more than half of the support of their 19-year old daughter, May, who lives with them.She graduated from high school in May 2011. May earns $15,000 from a part-time job, most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father, who died on January 3, 2012, at age 90, has for many years qualified as their dependent.How many personal and dependency exemptions should Kyle and Liza claim?
A)Two.
B)Three.
C)Four.
D)Five.
E)None of the above.

Question

Quizplus · Accepted Answer

Kyle and Liza can claim two personal exemptions for themselves. They can also claim a dependency exemption for their daughter May since they provided more than half of her support, and she was under 19 years old at the end of the year. They can also claim a dependency exemption for Kyle's cousin who lived with them and for whom they provided more than half of the support. Lastly, they can claim a dependency exemption for Liza's father, who passed away in the year, as long as he was a U.S. citizen or resident, and they provided more than half of his support for the year. So, in total, they can claim four exemptions.

Kyle and Liza Are Married and Under 65 Years of Age.During