5 people are possible dependents for Gerald’s tax return, but only 3 qualify. Who are those 3? Answer 1 of 1DoneAfter going through the given information, it can beunderstood that the relevant Tax year is 2014.Which three dependents can Ryan claim and why?The three dependents are:• Michael John Ryan - Qualifying Child - Age Test:Below 24 years full-time student, Relationship Test:Child of the Ryans, Residency Test: Temporaryabsence due to education, Support Test: providedonly 40% of his support. Fulfilled other tests:Citizen or Resident Test, Dependent taxpayer test,joint return test.• Oliver Plunkett Ryan - Qualifying Child - Age Test:Below 19 years full-time student, Relationship Test:Child of the Ryans, Residency Test: Stayed withRyans, Support Test: No own Income. Fulfilled othertests: Citizen or Resident Test, Dependent taxpayertest, joint return test.• Jane O'Dea Sullivan - Qualifying Relative -Relationship Test: Mother, Support Test: The Ryansprovided 65 percent of her total support, GrossIncome Test: Her income is less than the Limit(Note: Social Security benefits are not consideredfor gross income).Kelly Marie Ryan - She is not qualified as her ageexceeded 19 years on Dec 31, 2014, and she is nota full-time student and did not live with Ryans.John Wilson Amner - he is not a qualifying relativeas cousins do not meet the relationship test and healso did not fulfill the household test.Do they receive the tax credit?(Answered based on the provisions of 2020) Yes.$2,000 tax credit (Refundable up to $1,400 perchild) - for the qualifying child up to the age of 17years. -Oliver Plunkett Ryan in this case.$500 tax credit (non-refundable) - for a qualifyingchild above 17 years.$500 tax credit (non-refundable) - for a qualifyingrelative.Dependent rules also apply to other benefits:• Earned income tax credit• Child and dependent care credit for daycareexpenses• Medical expenses

Tax Credit: A tax credit is a measure of cash that citizens can deduct straightforwardly from the…

Answered: 5 people are possible dependents for…

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5 people are possible dependents for Gerald’s tax return, but only 3 qualify. Who are those 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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