[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

@pia–I think you would assume that $24000 is more than what they could contribute with their unearned income so that is more than 50% of their yearly support. Also, they pass the relative test even though they don't live with him and they pass the dependency test because they don't have more earned income than the exemption amount ($3,950) because SS doesn't count towards that amount. I would go with single and 3 exemptions. He can't claim HOH because they didn't live with him.

[pia ach]

@cpamommy where did u get the 24000 from?

The answer is Head of household and 3 exemptions.

Wolf qualifies as a “head of household” because he is unmarried and provides more than half of the cost of maintaining a household for his parents, who must also qualify as his dependents. Both his parents qualify as dependents because Wolf provides more than half of their support, and their gross income (excluding nontaxable Social Security) is less than $3,900.

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[pia ach]

ok 2000 of support yearly , got it ! Thanks 🙂

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[Anonymous]

$2,000 * 12. Ah–To be HOH, he just has to maintain the house where the relative lives, not have the relative live with them. Makes sense.

[Anonymous]

@pia – I'm confused – I thought that you couldn't take a person as an exemption if they can file a joint return (which his parents can file)? And, I thought that the HOH had to have dependent kids living with them?

[Anonymous]

[Anonymous]

@bucky– I remember seeing something about if the dependent can file a joint return too, but I can't find it in my notes. I definitely remember a question from Ninja about someone supporting their son, who is married and files joint with his wife and it not being allowed. I googled it and there isn't anything in this explanation about that. https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html

So now I am confused too.

[CPAfit]

@bucky for HOH the dependent child has to live at the house for at least six months.

For claiming a married child who is also filing a joint return, it's not allowed to claim their exemption. Either the parent or the children themselves can claim exemption, not both.

Hope this helps

[Anonymous]

So what about a married parent? That rule doesn't apply to parents you are claiming as dependents?

[CPAfit]

The rule applies to both. As per my becker notes, “if they use it, you lose it!” A person can only be claimed either on their own tax return or their dependent's not both

[taxgeek83]

You can claim your “elderly parents” as dependents – even if they do not live with you – as long as they meet the rest of the qualifying relative tests (income, support, etc.).

As far as dependents filing joint returns, you generally cannot claim a dependency exemption for a child filing a joint return unless he/she and spouse file that return solely to claim a refund of taxes withheld on wages. Then, if all of the other dependency tests are met, you can claim an exemption for each of them.

[Tax lady]

I think Elle tests today….Good luck Elle!!

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[Anonymous]

Good luck Elle! You can do it!

[CPAfit]

Good luck to elle!

[WANNABE_CPA]

Good Luck Elle..You will do great 🙂

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Author]

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