Dependents exemption

[Unregistered]

With all the confusion here is the scenario.
My client's daughter is 25 years old and is a student. She is not working. She has a daughter who is 5 years old. Can my client claim her daughter and grandchild as her dependents ? She provided a home for both of them.

[Koss]

Exemptions

You haven't really provided enough information, but I'll make certain assumptions...

I will assume:

(1) all three women are US citizens
(2) all three women lived in the same home for all of 2005
(3) all three women are unmarried as this term is defined by the Internal Revenue Code
(4) no one else lived in the home
(5) only your client, the grandmother, had income

On this scenario, even Jainen and I agree. Your client can claim her daughter as a qualifying relative and your client can claim her granddaughter as a qualifying child. In fact, if the grandchild is under 13, your client would concievably be able to claim all five tax benefits.

Burton M. Koss
koss@usakoss.net

https://www.usakoss.net

[Unregistered]

Thanks Koss .All your assumptions are correct, That answers all my question.

[Mark Goldberg]

One more thing

Regardless of the age of the child, grandma is head of household.

[Mark Goldberg]

Oops

I meant to say, regardless of the age of the grandchild, grandma is H of H.

[Unregistered]

Thanks Mark

[jainen]

the support test

I agree with this analysis except for the 5th assumption. Support is determined by how money is spent, not what is earned. If the daughter (or the granddaughter, for that matter) owns the house or is living off of investments or other savings, she might not meet the support test.