R1 M1 - Filing Requirements & Filing Status Flashcards
In Year 1, Smith, a divorced person, provided over one half the support for his widowed mother, Ruth, and his son, Clay, both of whom are U.S. citizens. During Year 1, Ruth did not live with Smith. She received $9,000 in Social Security benefits. Clay, a 25-year-old full-time graduate student, and his wife lived with Smith. Clay had no income but filed a joint return for Year 1, owing an additional $500 in taxes on his wife’s income. How many people meet the definition of either qualifying child or qualifying relative for Smith?
A. 0 B. 3 C. 1 D. 2
Choice “C” is correct. Ruth is the only one who meets the definition of a qualifying relative for Smith. Ruth’s $9,000 Social Security income is considered to be under the gross income limitation for QR because it is nontaxable income and is not considered for the gross income limitation. Clay is over the age limit for qualifying child. Clay files a joint return (with a tax liability) with his wife, so he also does not meet the definition of qualifying relative.
Choice “A” is incorrect. Neither Clay nor his wife meet the definition of qualifying child or qualifying relative. Clay is over the age limit for qualifying child purposes. The fact that Clay and his wife file a joint return (with a tax liability) prevents them from meeting the definition of qualifying relatives.
