Question

Aurora and Oscar separated in 2017 and divorced in October 2019. She earned $40,000 in wages and paid more than half the cost of keeping up her home in 2019.Aurora and Oscar have a son, Milo, who is 17 years old and unmarried.Aurora signed Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent) allowing Oscar to claim Milo in 2019.Milo is a full-time student working towards a degree in computer information systems. Milo lived on campus during the school year and spent the summer at home with his mother.Milo does not a have a felony drug conviction and is not a qualifying child for anyone except Aurora.Aurora paid $5,000 of Milo's tuition that was not covered by his scholarship.Aurora provided more than half of her son's support and all the cost of his room and board on campus.Milo's only income was $3,800 in wages and $400 of dividend income. He had no federal or state tax withholding.Aurora and Milo are U.S. citizens and have valid Social Security numbers.
Milo is Oscar’s qualifying person for which of the following? A. Head of Household filing status B. Earned income credit C. Credit for other dependents D. Child tax credit

Answer 1

Answer: The answer is C credit for other dependents

Explanation:

This is a reduction in tax liability given by the government to the tax payers for each of their children who still depends on the parent for some kind of support. The reduction in the tax liability given to parents include a sum of $500 for each of the children who still depend on their parents. This form of tax credit is given to children who is between the ages of 17- 23 years like in the case of Milo who is 17 years and unmarried. The chiidren who will enjoy this reduction in tax liability must be a students like in the case of Milo who is a full - time student working towards a degree in computer information system.

The tax credit criteria for qualification also include that the tax payers must be the one responsible for half of the dependent support, in addition, the dependent income must be low like in the case of Milo above whose income was $3,800 in wages and $400 of dividend income. This tax reduction can also be given to tax payers in respect of parents or grand parents who still depends on the tax payers for support. To also qualify for the tax reduction the dependent in question must be a United States citizens and must have a valid social security numbers like in the case of Milo above and Aurora the parent who are both U.S citizens and also they possess a valid social security numbers