Final answer:
The claim that Wayne cannot be declared as a dependent by his parents unless he is a full-time student is true. Financially, a family of three earning $20,000 may struggle to surpass the poverty threshold, while the rising costs of college education have surpassed the earnings of a full-time minimum wage job.
Step-by-step explanation:
The statement that Wayne's parents cannot claim him as a dependent unless he is a full-time student is true. According to IRS rules, to claim a child over the age of 19 as a dependent, the child must be a full-time student for at least five months of the year. However, since Wayne is not disabled and is 20 years old, his earnings or full-time student status are crucial in determining dependency. As Wayne is not a full-time student and earns $4,200, his parents cannot claim him as a dependent based on the information presented.
Talking about financial struggles, a family of three earning $20,000 might find it challenging to make ends meet given the official poverty threshold. Assuming the family has no other sources of income, it may barely scrape by or potentially fall short depending on their location and living expenses.
The cost of college has been rising, making it difficult for students to cover their college expenses with full-time employment. In 2016, a year of college at a public university was estimated to cost $19,548 by the College Board, which is higher than what someone earns working full-time at minimum wage.
The Bureau of Labor Statistics reported that the median weekly earnings correspond to higher annual incomes with more education. This data suggests that completing additional education and training can significantly increase one's earning potential over a lifetime.