"5"»
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Explanation
Jim
and
Kay
Ross
contributed
to
the
support
of
their
two
children,
Dale
and
Kim,
and
Jim's
widowed
parent,
Grant.
For
Year
27,
Dale,
a
19-year-old
full-time
college
student,
earned
$4,500
as
a
babysitter.
Kim,
a
23-year-old
bank
teller,
earned
$12,000.
Grant
received
$5,000
in
dividend
income
and
$4,000
in
nontaxable
Social
Security
benefits.
Grant
and
Kim
are
U.S.
citizens
and
were
over
one-half
supported
by
Jim
and
Kay,
but
neither
of
the
two
currently
reside
with
Jim
and
Kay.
Dale's
main
place
of
residence
is
with
Jim
and
Kay,
and
he
is
currently
on
a
temporary
absence
to
attend school.
How
many
people
meet
the
definition
of
either
qualifying
child
or
qualifying
relative
on the
Year
27
joint
income
tax
return
for
Jim
and
Kay
Ross?
A.
B
C.
D
Zero
One
Two
Three
Explanation
X
Choice
"A"
is
incorrect.
Dale
meets
the
CARES
criteria
for
qualifying
child
for
Jim
and
Kay
Ross.
Choice
"B"
is
correct.
Only
one
person
meets
the
criteria
for
either
qualifying
child
or
relative
for
the
Rosses.
Dale
meets
the
definition
of
qualifying
child.
He
meets
all
criteria
of
CARES.
He
is
under
the
age
limit
because
he
is
a
full-time
student
under
the
age
of
24.
All
other
CARES
tests
are
met.
Kim
does
not
meet
the
age
test
for
qualifying
child.
She
also
does
not
meet
the
qualifying
relative
criteria
because
her
taxable
gross
income
of
$12,000
exceeds
the
gross
income
limit
under
SUPORT.
Because
Grant
is
Jim's
parent,
Grant
does
not
have
to
live
with
the
Rosses
to
be
a
qualifying
relative.
However,
Grant's
taxable
gross
income
of
$5,000
exceeds
the
gross
income
limit,
so
he
is
not
a
qualifying
relative.
Note
that
Grant's
nontaxable
Social
Security
benefits
are
not
included
in
gross
income
for
purposes
of
the
qualifying
relative
gross
income
test.
Choice
"C"
is
incorrect.
Kim
fails
the
age
test
for
qualifying
child
(CARES)
and
the
gross
income
test
for
qualifying
relative
(SUPORT).
Grant
also
fails
the
gross
income
test
for
qualifying
relative
(SUPORT).
Choice
"D"
is
incorrect.
Only
Dale
meets
the
definition
of
either
qualifying
child
or
qualifying
relative
for
Jim
and
Kay
Ross.
Kim
does
not
meet
the the
age
test
for
qualifying
child
or
the
gross
income
test
for
qualifying
relative.
Grant
also
does
not
meet
the
gross
income
test
for
qualifying
relative.
