An individual receiving $5,000 of tax exempt income during the year could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.The taxpayer could qualify as a qualifying relative (doesn't fail the gross income test) because the tax exempt income is excluded from gross income.

Question

Quizplus · Accepted Answer

The Answer of An individual receiving $5,000 of tax exempt income during the year could qualify as a qualifying child of another taxpayer but could not qualify as a qualifying relative of another taxpayer.The taxpayer could qualify as a qualifying relative (doesn't fail the gross income test) because the tax exempt income is excluded from gross income.

An Individual Receiving $5,000 of Tax Exempt Income During the Year