H&R Block Final review|Graded A+

H&R Block Final review|Graded A+ Tony (28) and Adam (27) are cousins and lived in the same home throughout 2017. Adam only earned $2,500 in 2017. Tony earned $25,000 in 2017. What test does he meet? Adam meets the relationship and member of household test for Tony, since Adam lived with Tony the entire year. Tony may be able to claim Adam as a qualifying relative dependent. Note: Being cousins alone will not meet the relationship test for qualifying relative, because a cousin is not listed as a specific relative relationship. However, a cousin, like other non-relatives, may meet the relationship test for qualifying relative if the individual lived in the taxpayer's home for the entire year Recall Tony-28 $25000 and Adam-27 $2500; cousins from an earlier example, Tony provided more than half of Adam's support. Adam is not permanently and totally disabled. Can Tony claim Adam? Tony may claim Adam as a dependent because he meets all four tests for qualifying relative. 1. Adam is too old to be someone else's qualifying child 2. Relationship or all year 3. gross income is less than $4,05 4. support c3 John lives with Robert, his father. John provides 30% of Robert's support Can he claim Robert?. John may not claim Robert as a dependent, because John failed the qualifying relative support test. c3 Yolanda lives with her daughter, Elizabeth. Elizabeth is the qualifying child of Yolanda. Neither Yolanda nor anyone else can claim Elizabeth as their qualifying relative. Can she claim daughter? since Elizabeth meets the definition of a qualifying child > Relationship, age, residency, support, joint return c3 Ron (35) and Sue (35) are married and have two children, *Todd (8) and Tracy (6)*. Neither child has income. Stacy (13), Sue's child from a previous marriage, came to live with them on July 4, 2017. Prior to moving in with Ron and Sue, Stacy was supported by and lived with her father. How many QC and QR? Todd and Tracy are qualifying children of Ron and Sue (2 QC). Stacy is neither a qualifying child nor a qualifying relative of Ron and Sue (0 QR). Because she was supported by and lived with her father for more than six months, she cannot be a qualifying child for Sue (residency test) and is not a qualifying relative of Ron and Sue (qualifying child test). e3.1 Dale (25) is single. His brother, Jeff (27), lived with him for all of 2017. Jeff earned $3,100, all from wages, and had no other income. Dale provided more than half of Jeff's support. Jeff is not permanently or totally disabled. No one else lived with Dale. Qualifying relative QR? #2 QR - Yes Qualifying relative, 1. not QC; 2. brother& all year 3.<4050 rt e3.1 Megan (27) is single. Her cousin, Pam (29), moved in with her in February of 2017. Pam earned $3,600, all from wages, and had no other income. Megan provided 60% of Pam's support. Pam is not permanently or totally disabled. No one else lived with Megan. QR? #5 N - No, Pam did not live with Megan the entire year, and cousins do not meet the relationship test for qualifying child or relative. e3.1 Martin is single. His mother, Agnes (61), came to live with him in August of 2017. Agnes earned $14,100, all from wages, and had no other income. Martin provided 25% of Agnes' support. Agnes is not permanently or totally disabled. No one else lived with Martin. QR? #6 N - Martin did not meet the qualifying relative gross income and support tests to claim Agnes as a qualifying relative dependent on his return.[14100<4050 F& suport 25% < 50%] e3.1 Ashley is single. Victoria (5) was lawfully placed in her care by the court of Your State in November of 2017. Victoria had no income and did not provide more than half of her own support. Prior to living with Ashley, Victoria lived with her mother for ten months. Ashley provided 20% of Victoria's support. No one else lived with Ashley. QR? #9 N - no - must live there for 6 months. Victoria lived with her birth mother for more than half the year e3.1 Mike (33) and Janet (34) are not married but lived together for all of 2017, and Mike provided the total support of the home, as Janet had no income. Living with them all year were Janet's two children, Tim (12) and Sally (9). Neither child had any income. Sally's father is Mike's brother. When Mike files his return, will Sally qualify as his QC, QR, or neither QR? #11 QC - QC because sally is his neice. e3.1 Lori (18) and her qualifying child, Cheryl (5 months), lived together with Lori's mother, Brenda (41), for all of 2017. Lori is Brenda's qualifying child, and Brenda will claim Lori as a dependent on her tax return. QR? Lori cannot claim herself, nor can she claim Cheryl. Brenda may also claim Cheryl if she meets all the required tests. e3.1 Amparo (32) and her qualifying child, Miguel (3), lived together for all of 2017. No one else can claim Amparo on their return. QC? Amparo may claim Miguel on her return, assuming the other tests are met. e3.1 Ian (51) lived together with his qualifying child, Robert (21), for all of 2017. In October 2017, Robert married Veronica (21), and both lived with Ian for the remainder of the year. Robert, a full-time student, did not work in 2017, and Veronica earned only $3,000. Robert and Veronica filed a joint return to get a refund of $102 withheld from Veronica's wages. Neither Robert nor Veronica claimed his or her own exemption. QC or QR or none? Ian may still claim Robert as his dependent. (full-time student, 21yo) e3.1 Ronald (54) and Wendy (52) are married and lived with their qualifying relative, Gwyn (26), for all of 2017. In November 2017, Gwyn married Tim (27), and both lived with Ronald and Wendy for the rest of the year. Gwyn earned $2,400, and Tim earned $20,500 in 2017. Ronald and Wendy may not claim Gwyn as their dependent on their return if Tim and Gwyn file a joint return. [a taxpayer may not claim a married person as a dependent if the married dependent files a joint return] 3.2 1.Leslie is single. Jack is Leslie's qualifying child. No one can claim Leslie on their tax return. Jack is not married. Both Leslie and Jack are U.S. citizens. D or ND? dependent - Jack is clearly a dependent in this case. 3.2 2.Marcus is single. Quinta is Marcus's qualifying relative. Marcus may be claimed by his mother, but she is not going to claim him. Quinta is not married. Both Marcus and Quinta are U.S. citizens. D or ND? NOT DEPENDENT - Since Marcus can be claimed by his mother, Marcus cannot claim any dependents, whether his mother claims him or not. 3.2 3.Carl and Carrie are married. Carol is their qualifying child. No one can claim Carl or Carrie on their tax return. Carol is married to Paul. Neither Carol nor Paul is required to file a tax return. Carol had no income. Paul is filing a joint return with Carol only to claim a refund of the tax withheld. Carl, Carrie, Carol, and Paul are all U.S. citizens. D or ND? dependent -Carol meets all the requirements to be claimed as a dependent on Carl's and Carrie's tax return. 3.2 4.Tomas is single. Lucinda is Tomas' qualifying child. No one can claim Tomas on their tax return. Lucinda is not married. Tomas is a U.S. citizen. Lucinda is a resident of Mexico. D or ND? dependent -A resident of Mexico can be claimed as a dependent as long as other tests are met. 3.2 5.Orville and Marsha are married. Kevin is their qualifying relative. No one can claim Orville on their tax return. Marsha may be claimed by her father, but he is not going to claim her. Kevin is not married. Orville, Marsha, and Kevin are all U.S. citizens. D or ND? NO DEPENDENT- Since Marsha can be claimed by her father, she and Orville cannot claim a dependent on their return. 3.2 6.Mai is single. Lee is her qualifying child. No one can claim Mai on their tax return. Lee is married to Sonja. Neither Lee nor Sonja is required to file a tax return. Lee had no income. Lee and Sonja will not be filing a joint return. Mai, Lee, and Sonja are all U.S. citizens. D or ND? dependent - Since it states that Lee and Sonja did not file a joint return, the joint return test is clearly met. Therefore, since Lee meets all of the other requirements, he is Mai's dependent. 3.1 Does child' gross income test need to be met for a dependent to be a taxpayer's qualifying child? NO, Child's Gross income does not matter. A taxpayer's qualifying child must meet the support test, not the gross income test. They may have gross income more than $4,050, but they cannot provide more than half of their own support. Pat and Geri Dale are filing a joint return and have an adjusted gross income of $124,000 and three qualifying children.