Problem 1-A

Problem 1-A - Problem Set#1 with answers 1 Lorna is a...

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Problem Set #1 with answers 1. Lorna is a single taxpayer. Which of the following people can she claim as her dependents? (all are U.S. citizens, are not married, and have no dependents themselves) Her sister Lisa who lives with her. Lisa works at Burger King but does not make enough to support herself. Lisa is 20 years old and is supported by rich uncle Harry. Lisa’s gross income is $2,000. Suppose Lisa were18 years old – would that change your answer? Ans: Lisa is too old be Lorna’s qualifying child. And Lorna does not support her, so Lisa cannot be her qualifying relative. If Lisa were only 18, she’s be Lorna’s qualifying child. Her brother Melvin who is 25 and lives down the street from Lorna. Melvin has no gross income. Lorna supports him. Ans: Melvin is Lorna’s qualifying relative. Her cousin Felix who is 16 years old. Felix lives with Lorna and has no gross income. Lorna supports him. Suppose rich Uncle Harry supported Felix – would that change your answer? Ans: Felix is Lorna’s qualifying relative if she supports him. He’s a member of her household and has no gross income. If Lorna did not support him, he would not qualify as her dependent. Her niece Maxine who is a full-time student, 22 years old, and lives with Lorna. Maxine has gross income of
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Problem 1-A - Problem Set#1 with answers 1 Lorna is a...

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