13. LO.4 Patsy maintains a household that includes her eldest son (age 30) and one of Patsy’s cousins (age 28). She can claim the cousin as a dependent but not her son. Explain.
14. LO.4 Heather, age 12, lives in the same household with her mother, grandmother, and uncle.
a. Who can claim Heather as a dependent on a Federal income tax return?
b. Which of Heather’s relatives takes precedence in claiming the exemption?
15. LO.4 Caden and Lily are divorced on March 3, 2012. For financial reasons, however,
Lily continues to live in Caden’s apartment and receives her support from him. Caden does not claim Lily as a dependent on his 2012 Federal income tax return, but he does so on his 2013 return. Explain.
16. LO.4 Isabella, Emma, and Jacob share equally in the support of their parents. Jacob tells his sisters that they should split the dependency exemptions among themselves.
Explain what Jacob means.
17. LO.4 Mark and Lisa were divorced in 2012. In 2013, Lisa has custody of their children, but Mark provides nearly all of their support. Who is entitled to claim the children as dependents?
18. LO.4 Peter maintains a household in which his 18-year-old son Kip and Kip’s wife Kerry live. Although Peter provides most of their support, he does not claim them as dependents because Kip and Kerry file a joint return. Is Peter correct? Explain.
19. LO.4 Mario, who is single, is a U.S. citizen and resident. He provides almost all of the support of his parents and two aunts, who are citizens and residents of Guatemala.
Mario’s parents and aunts are seriously considering moving to and becoming residents of Mexico. Would such a move have any impact on Mario? Why or why not?
20. LO.5, 9 Paul and Sonja, who are married, reported 2013 itemized deductions of $8,200 and $400, respectively. Paul suggests that they file their Federal income tax returns separately—he will itemize his deductions from AGI, and she will claim the standard deduction.
a. Evaluate Paul’s suggestion.
b. What should they do?