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For each of the following independent situations, determine the taxpayers filing status for 2018, identify the person(s) who qualifies as a dependent to the taxpayer,

For each of the following independent situations, determine the taxpayer’s filing status for 2018,

  1. identify the person(s) who qualifies as a dependent to the taxpayer, and fully explain your answers; for any person(s) who does not qualify as a dependent to the taxpayer, explain why.

  1. Brandon is divorced from his wife, Joan. In accordance with his divorce settlement, he has been paying her monthly alimony of $5,000. Joan does not work and uses the alimony to support herself. Brandon’s brother, Troy, has health issues and has had to quit his job. He moved into Brandon’s basement 18 months ago. Troy’s only source of income is $10,000 of interest from municipal bonds. Brandon does not charge Troy for food or rent and often pays for his medication.
  2. Starr is a mutual fund manager whose husband died in 2017. She is the sole supporter of her parents, who live in a nearby nursing home. Starr provides most of the support for her uncle, who lives in the same nursing home. Her uncle’s only other source of income is $6,500 of nontaxable social security.
  3. Tony and his wife, Paula, are the sole supporters of their 12-year-old twin sons, Ned and Ted; their 22-year-old daughter, Nancy; and Tony’s 20-year-old cousin, Sarah. Nancy is taking courses part-time at the local community college while she tries to pursue a singing career. She has yet to earn any money singing. Sarah’s parents died in a car crash last year. They left her a small inheritance, which she is using to pay for her university tuition. Tony has rented an apartment for her close to the university and provides her with a monthly allowance for her living expenses. Sarah is attending school full-time.
  4. After 10 years of marriage, Bonnie and Clive decided to take a break from each other. They did not seek a legal separation but decided to informally undergo a trial separation. To that end, Clive moved into a nearby townhouse in August 2018. Their four school-age children live with Bonnie, although they visit their father frequently. Bonnie paid 65 percent of the cost of maintaining her household, and Clive contributed 35 percent. In addition, Clive paid Bonnie $800 per month in child support. Answer the questions above for both Bonnie and Clive.

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a i Filing Status of Brandon Single ii Alimony paid to Joan is not a voluntary payment but a divorce ... blur-text-image

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