Question

Amber, who is divorced, supports four individuals: erin, her daughter, who lives with her; amy, her cousin, who lives in another state; britney, her friend, who lives legally in amber's home all year long; and charlie, her father, who lives in another state. assume that the dependency requirements other than residence are all met. how many personal and dependency exemptions may amber claim?

Answer 1

Amber may claim four personal and dependency exemptions. Because she is financially supporting all four people, they count as her dependents. If one of them was able to pay for their own expenses, they would not be counted as a dependent. Even though Charlie lives in another state, this is still true.