The Hutters filed a joint return for 2014.They provide more than 50% of the support of Carla,Melvin,and Aaron.Carla (age 18)is a cousin and earns $2,800 from a part-time job.Melvin (age 25)is their son and is a full-time law student.He received from the university a $3,800 scholarship for tuition.Aaron is a brother who is a citizen of Israel but resides in France.Carla and Melvin live with the Hutters.How many personal and dependency exemptions can the Hutters claim on their Federal income tax return?
A)Two
B)Three
C)Four
D)Five
E)None of these

Question

Quizplus · Accepted Answer

The Hutters can claim two personal exemptions and two dependency exemptions.Carla is a qualifying relative and passes the gross income test.Melvin is not a qualifying child due to age (not under 24)but is a qualifying relative.Melvin also meets the gross income test since this type of scholarship is nontaxable.Aaron meets neither the residency nor citizenship requirement.

The Hutters Filed a Joint Return for 2014