Question

Evan and Eileen Carter are husband and wife and file a joint return for 2020. Both are over 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 tuition at college. They furnish all of the support of Belinda (Evan's grandmother), who is age 85 and lives in a nursing home. They also support Peggy (age 64), who is a friend of the family and lives with them. How many dependents may the Carter's claim?

Answer 1

Carter's may claim ThREE dependents

Step-by-step explanation:

Based on the information given the number of dependent Carter's may claim is THREE .

The first dependent that Carter's may claim is their daughter which is Pamela who is 25 years old because they provide more than half of support for her.

The second dependent that Carter's may claim is Evan's grandmother (Belinda) who is 85 years old and who lives in a nursing home reason been that they furnish all of her support.

The Third dependent that Carter's may is Peggy who is 64 years who lives with them.

Therefore Carter's may claim the dependency exemption for all the three people they supported which will in turn lead to reduction in their taxable income thereby enabling them to pay income tax amount that is lesser.