2. Jane is 20 years old and is a sophomore at Lake University. She is a full-time...
Question:
2. Jane is 20 years old and is a sophomore at Lake University. She is a full-time student and does not have any gross income. Jane spends the holidays and summers at home with her parents. Her total support for the current tax year is $30,000, including a scholarship for $5,000 to cover her tuition. Jane used $12,000 of her savings, and her grandparents provided $13,000. Which of the following statements regarding the dependency rules for Jane is true?
a. If Jane’s parents (rather than her grandparents) provided the $13,000, then they would not be able to claim Jane as a dependent because Jane provided more than half of her own support.
b. Jane’s grandparents can claim her as a dependent because Jane did not provide more than half of her own support.
c. Jane’s grandparents cannot claim her as a dependent because Jane provided more than half of her own support.
d. Jane does not qualify as a dependent for either her parents or grandparents.
Step by Step Answer:
Essentials Of Taxation Individuals And Business Entities
ISBN: 233160
1st Edition
Authors: Nellen/Young/Raabe/Maloney