2-66 Federal Tax - Now when it comes to Ed and his...

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Courtney Britt  Federal Tax  ACCT 320 Dr. Taylor 2/9/2015 Problem 2-66 In order for Ed to see if he is entitled to a dependency exemptions for these three individuals. There are five tests for dependency. When it comes to this there are three problems that could happen. The first two, the citizenship and relationship tests they all pass. All tests must be met in order for Ed to claim the dependency exemptions. If he qualifies to claim any of them as dependents, they cannot be claimed as dependents of their own return. Support test he must provide over half the support for the people is question to be claimed as dependents. Joint return test the people being claimed as dependents cannot file a joint return. Gross income test the people being claimed as a dependent cannot have over $3,900.00 in gross income. This test does not apply if the person is his child under age 24 and a full-time student. Each of these tests is applied to the individual.
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Unformatted text preview: Now when it comes to Ed and his situation he does not live with this stepdaughter or the stepdaughter’s family. For them to qualify as Ed’s dependents the stepdaughter and her family must be related to Ed. When it comes to stepchildren it is listed in Sec. 152-2 as relatives. It also says in Reg. Section 1.152 addresses that a relationship once existing will not terminate by divorce or death of a loved one. With is in mind the stepdaughter meets the relationship test. In the matter of the stepdaughter’s spouse he is not related to Ed, when it comes to step-son-in-laws the Tax Court in Desio Barbetti under the term “grandchildren” it does not count step-grandchildren and neither stepchild and son-in-law covers stepson-in-law. With is in mind and going by current laws the child can be a dependent....
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