Question

6) Huey, Dewey, Louie, and Daisy all provide support for their Uncle Donald. Donald only earns $3,000 per year. He lives for free in an apartment that is owned by Huey. Dewey provides food, and Louie pays the utilities on the apartment. Daisy checks in on her uncle a lot and runs errands for him. The expenses and value of the rent break down so that Huey provides 35%, Dewey provides 27%, Louie provides about 25%, Daisy provides about 8%, and Donald provides 5%. Which of the nephews and/or niece can claim Donald as a dependent? 7) If a couple gets married on December 15 of the current year, should they file as "single" (assuming there are no dependents) since they were unmarried for more than half of the year? 8) Can you use more than one filing status on a tax return (in other words, file single for part of the year and married filing jointly for the remainder of the year)?

Answer 1

(6) Huey,Dewey,Louie, and Daisy all provide support for their uncle Donald. Uncle Donald is a qualifying relative. He meets all the conditions as per law.

Uncle Donald only earns $3000 per year (i.e. relative gross income is less than the personal exemption limit ( which is $4200).

In the above case study Huey can claim Uncle Donald as a dependent as:-

• Uncle Donald is a qualifying relative.
• Uncle Donald income is less than $4200
• Huey provides more than half of persons support .

(To determine this condition we will compare how much one spend on this dependent necessities, with the contribution made by somebody else) Costs like utilities, groceries, etc is divided by the number of household members to calculate t per-person cost.

If you are paying more than 50% of another person's necessary living expenses, you financially support that person.

(7) If a couple gets married on December 15, of the current year, they should file return as " married" even when they were unmarried for more than half of the year.

Marriage status is defined as status of the person as on the last day of the tax year i.e. December 31. A person can claim single status on a return or claim single filing status on tax return if they are considered as unmarried on that day. Since the couple gets married on December 15, in the given case , they cannot file return as " single "

(8 )No, we cannot use more than one filing status on a tax return ( in other words, file single for part of the year and married filing jointly for the remainder of the year).

As per Taxation Law, we can use only one filing status when we complete our tax return.