Question

Kyle and Liza are married and under 65 years of age. During 2019, they furnish more than half of the support of their 19-year old daughter, Kendra, who lives with them. She graduated from high school in May 2018. Kendra 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, 2019, at age 90, has for many years qualified as their dependent. How many dependents can Kyle and Liza claim?

a) None

b) One

c) Two

d) Three

Answer 1

Kyle and Liza can claim two dependents: their 19-year old daughter, Kendra, and Liza's father, who passed away in January 2019 but qualifies as a dependent for the entire year. Thus, the correct answer is option c) Two.

Step-by-step explanation:

Kyle and Liza can claim two dependents. The first dependent is their 19-year old daughter, Kendra, who meets the qualifying criteria as she is under 19, a student, and they provide more than half of her support. The second dependent is Liza's father, who passed away in January 2019. Even though he died during the year, he can still be claimed as a dependent for the entire year if he met the dependency requirements.

The cousin living with them does not qualify as a dependent unless certain criteria, such as a close relationship or specific living arrangements, are met. Therefore, the answer is two dependents for Kyle and Liza.

Thus, the correct answer is option c) Two.