Blake was 21 years of age at the end of the year. During the year, he was a full-time college student. He also worked part-time and earned $8,000, which he used to pay all $6,000 of his living expenses. Blake's parents, Troy and Camille, claimed him as a dependent on their joint tax return. After filing the return, Troy told Blake they owed him $3,001 for his annual living expenses.

Your post should include:

• What do you think of Troy and Camille's strategy to claim Blake as a dependent?
• Are Blake's parents going to actually transfer the money to Blake?
• What was the nature of the arrangement? Is this simply a ploy to justify claiming Blake as a dependent in order to secure a tax benefit such as the (expanded) child tax credit or the American opportunity credit, or is there something more to it?