Kyle and Liza are married and under 65 years of age.During 2010,they furnish more than half of the support of their 19-year old daughter,May,who lives with them.May earns $15,000 from a part-time job,most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father,who died on January 3,2010,at age 80,has for many years qualified as their dependent.How many personal and dependency exemptions should Kyle and Liza claim?
A)Two.
B)Three.
C)Four.
D)Five.
E)None of the above.

Question

Quizplus · Accepted Answer

Kyle and Liza qualify for two personal exemptions for themselves.

They can also claim two dependency exemptions - one for their daughter May (since they provide more than half of her support and she is under 19 years old or a full-time student under 24 years old), and one for Liza's father (since he was a qualifying relative and they provided more than half of his support for the year he died).

They cannot claim a dependency exemption for Kyle's cousin unless the cousin meets the qualifying relative tests (such as earning less than $4,050 in gross income for the year), which is not specified in the given information.

Kyle and Liza Are Married and Under 65 Years of Age.During