Question

Charlotte is the Lucas family's 22-year-old daughter. She is a full-time student at an out-of-state university but plans to return home when the school year ends. During the year, Charlotte earned $4,000 of income working part time. Her support totaled $30,000 for the year. Of this amount, Charlotte paid $7,000 with her own funds, her parents paid $14,000, and Charlotte's grandparents paid $9,000. Which of the following statements most accurately describes whether Charlotte's parents can claim Charlotte as a dependent?

Answer 1

Answer:

Charlotte is a qualifying child (QC)

Explanation:

The six IRS requirements are: for determining a qualifying child are:

1. Relationship: Charlotte is the Lucas's daughter.
2. Age: since she is a full time student, she can be up to 24 and still qualify (she is only 22).
3. Residence: the time spent studying counts as living with her parents.
4. Support: Charlotte is not able to pay for at least half of her expenses.
5. Joint return: Charlotte is not filing any joint return.  
6. Citizenship: apparently Charlotte is American or at least legal alien.