Evan and Eileen Carter are husband and wife and file a joint return for 2010.Both are under 65 years of age.They provide more than half of the support of their daughter,Pamela (age 25),who is a full-time medical student.Pamela receives a $5,000 scholarship covering her room and board at college.They furnish all of the support of Belinda (Evan's grandmother),who is age 70 and lives in a nursing home.They also support Peggy (age 66),who is a friend of the family and lives with them.How many personal and dependency exemptions may the Carters claim?
A)Two.
B)Three.
C)Four.
D)Five.
E)None of the above.

Question

Quizplus · Accepted Answer

The Carters can claim a personal exemption for themselves and a dependent exemption for Pamela, Belinda, and Peggy, for a total of four exemptions. The scholarship does not disqualify Pamela from being claimed as a dependent because it only covers her room and board, not all her expenses.

Evan and Eileen Carter Are Husband and Wife and File