Tax Assignment 2 - For the support test the $2,500 count...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Shu-Ya Peng Tax Assignment 2 Explanation 1: Clark and Lois Kent can claim both May & Billy, Jr., as dependent because of the qualifying child test. They meet the relationship test because they are Lois’s children, they meet the Abode Test because they live with the Kent’s for more than 9 months a year. They meet the age test because they are7 and 10 years old, respectfully. They are not self supporting. Under the Tiebreaker rules, when both persons are the parents, and the child lives longer with one parent, the parent with the longer period of residence can claim exemption. Because the children live with the Kent’s for 9 month, while only live with Billy Batson for 3 month, Clark and Lois Kent get the exemptions. Explanation 2: Lucy Lane is a qualifying relative. She meets relationship test. She meets gross income test because her only income is social security benefit, which is lower than the first base of $25,000.
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: For the support test, the $2,500 count toward her own support , yet the Kent provide $3,500 support and rent of $450 *12 = 5,400. Because Kent provide more than half the support, she meet the support test as well and can be claimed as a dependent. Explanation 3 Medical Expenses include hospital stay for poisoning, surgery after accident, doctor visits, prescriptions, premiums for insurance and another surgery Billy received. The amount then needs to deduct the reimbursement. Also, the expected reimbursement next year is disregarded in measuring the amount of the deduction. The calculation =3000+3270+850+380+850+2600-2000+1200 = 10150 10150 goes to line 1 on Schedule A Explanation 4 Casualty or theft losses Please see Form 4684 in the attachment....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern