Question

Scenario 6: Noah and Ella Neumann - Who can Noah and Ella claim as a dependent on their 2019 tax return?

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Note: When entering Social Security numbers (SSN) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes • Noah, age 65, and Ella, age 54, are married. They elect to file Married Filing Jointly. • Their son Leo is 23 years old and a full-time college student in his third year of study. He is pursuing a degree in Business Administration and does not have a felony drug conviction. His 2018 Form 1098-T did not have an amount entered in box 2. Their son Freddie is 26 years old and graduated from college in June 2019. He had a part-time job where he earned $7,000 in 2019. Noah and Ella paid more than half the cost of maintaining a home and provided over half the support for both Leo and Freddie. • Noah retired in 2019 and received interest income, Social Security benefits, and wages from a part-time job. Ella received disability pension benefits. She has not reached minimum retirement age. • Noah and Ella made estimated tax payments of $500 for 2019. • Noah and Ella do not have enough deductions to itemize. Leo received a scholarship and the terms require that it be used to pay tuition. Noah and Ella paid the cost of Leo's tuition and course-related books in 2019 not covered by scholarship. They paid $75 for a school sweatshirt for homecoming and $4,500 for a meal plan. If Noah and Ella receive a refund, they would like to deposit half into their checking account and half into their savings account. Documents from County Bank show that the routing number for both accounts is: 111000025. Their checking account number is 987654321 and their savings account number is 234567890. OCLUSIEUTRI SOCIAL SECURI CIAL SECURITY SOCIALS 131-XX-XXXX SE SECO 133-XX-XXXX Leo Neumann Noah Neumann 132-XX-XXXX Ella Neumann ch Le Neste Naal Net

Answer 1

Determination whether a Person is Dependent or not :-

A Qualifying Relative is a person who meets the IRS requirements to be your dependent for tax purposes. If someone is your Qualifying Relative, then you can claim them as a dependent on your tax return.

Qualifying Relative Requirements

An individual must meet all 4 of these requirements in order to be considered your Qualifying Relative.

1. Not a Qualifying Child: The individual cannot be your Qualifying Child and cannot be someone else's Qualifying Child. They are a Qualifying Child if they meet all the requirements, whether or not they are claimed as a dependent.
2. Relationship: The person must either have lived with you for the entire year as a member of the household (a person who is not actually related to you may meet the requirements in this way), OR be related to you in one of the following ways:
   • Your child, stepchild, grandchild or other descendant of one of your children (or stepchildren or foster children). A child whom you legally adopted is always considered to be your child.
   • Your son-in-law, daughter-in-law, brother-in-law, sister-in-law
   • Your brother, sister, half brother, half sister, stepbrother, stepsister
   • Your parent, stepfather, stepmother, father-in-law, mother-in-law, grandparent, and, if related by blood, aunt, uncle, niece, or nephew (Also note that, for the purposes of this requirement, divorce or death does not change any relationship which was established by marriage (e.g. son-in-law, daughter-in-law, etc.)
3. Gross Income: The person must have made less than $4,200 in gross income during 2019.
4. Support: You must have provided more than half of the individual's total support during the year.

Conclusion : -

You can claim Leo as a dependent, because Leo fulfills all the 4 Qualifying requirements.

You cannot claim Freddie as a dependent, because he donot fulfills all the 4 Qualifying requirements. He is doing Part time Job of $ 7000 which is more than $4200 3^rd condition