46.9k views
3 votes
Tami and her daughter, jade (5), lived all year with tami's mother, yasmin. yasmin paid the entire cost of keeping up the home. tami's adjusted gross income (agi) was $12,000, and yasmin's agi was $30,000. jade meets the requirements of a qualifying child dependent for both tami and yasmin. yasmin would like to claim her granddaughter, jade. as yasmin's tax preparer, what information would you share with yasmin?

User Dmyan
by
7.5k points

1 Answer

1 vote

Final answer:

Yasmin may be able to claim her granddaughter, Jade, as a dependent if her daughter, Tami, does not claim her and if Yasmin supported the household, as Yasmin has the higher AGI. The tax rules for claiming a dependent are complex and may be influenced by multiple factors, including income and governmental support programs.

Step-by-step explanation:

As Yasmin's tax preparer, the key information to share would involve the dependency tax rules. Since Jade is a qualifying child dependent for both Yasmin and Tami, generally, the parent with whom the child lived the longest during the year has the right to claim the child as a dependent. However, in situations where the child lived with each parent for an equal amount of time, the parent with the higher adjusted gross income (AGI) has the right to claim the child. In this case, Yasmin has a higher AGI than Tami. However, there is also a possibility of Yasmin claiming the child as a dependent if Tami agrees not to claim her and if Yasmin supported the household.

As for the antipoverty program mentioned, the information provided may not be directly applicable to Yasmin's situation, but it does highlight the impact of income on government support. If Tami was participating in such a program, her income would influence the amount of support received. Hence, understanding the intricacies of taxation and government support programs is crucial for tax preparation and financial planning. It's also notable that under certain conditions, a non-parent may claim a child as a dependent if they provided the majority of the support.

User Slava Rozhnev
by
8.0k points