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Walter and Nancy provide 60% of the support of their daughter (age 18) and son-in-law (age 22). The son-in-law (John) is a full-time student

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Walter and Nancy provide 60% of the support of their daughter (age 18) and son-in-law (age 22). The son-in-law (John) is a full-time student at a local university, and the daughter (Stella) holds various part-time jobs from which she earns $11,000. Walter and Nancy engage you to prepare their tax return for 2020. During a meeting with them in late March 2021, you learn that John and Stella have filed a joint return. What tax advice would you give based on the following assumptions? a. All parties live in Louisiana (a community property state). Who can Walter and Nancy claim as dependents? Indicate whether the following options could rectify the situation. Select "Yes" or "No" whichever is applicable. 1. If they could document the reason for filing a joint return was to claim a refund for tax withheld, no tax liability exists for either spouse on separate returns and neither spouse is required to file a return. 2. 11 John or Stella amend their return and file separately before April 15, 2021. 3. There is nothing that can be done, since the return has already been filed. If John and Stella had not filed a joint return, who could Walter and Nancy claim as a dependent? b. All parties live in New Jersey (a common law state). If John and Stella had not filed a joint return, who could Wolter and Nancy claim as a dependent?

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