Jim and Kay Bridges contributed to the support of their two children, Samantha and Amanda, and Jim's widowed parent, Carl. For 2009, Samantha, a 19 year old full time college student, earned $4,500 as a baby-sitter. Amanda, a 23 year old bank teller, earned $12,000. Carl received $5,000 in dividend income and $4,000 in nontaxable Social Security benefits. Carl and Amanda are US citizens and were over 1/2 supported by Jim and Kay, but neither of the two currently resides with Jim and Kay. Samantha's main place of residence is with Jim and Kay, and she is currently on a temporary abscence to attend school.
How many dependency exemptions can Jim and Kay claim on their 2009 joint income tax return?
To determine how many dependency exemptions Jim and Kay can claim on their 2009 joint income tax return, we need to consider the qualifications for claiming a dependent.
According to the IRS, there are several tests that need to be met in order to claim a dependent. These tests include the relationship test, the gross income test, the support test, the joint return test, and the residency test.
1. Relationship test: In this case, Samantha and Amanda are the potential dependents. Samantha is the child of Jim and Kay, which satisfies the relationship test. Amanda is not the child of Jim and Kay, but she could still meet the relationship test if she is their sibling or a descendant of their parent.
2. Gross income test: To qualify as a dependent, the individual's gross income must be below a certain limit. For 2009, the gross income limit for a qualifying child dependent is $3,650. Samantha's gross income of $4,500 exceeds this limit, so she cannot be claimed as a dependent. Amanda's gross income of $12,000 also exceeds the limit.
3. Support test: To qualify as a dependent, the individual must not provide more than half of their own support. Samantha is a full-time college student and is likely supported by Jim and Kay. Amanda's support is not mentioned, but since she is a bank teller and earns income, it is possible that she provides for more than half of her own support.
Based on the information provided, it appears that Jim and Kay cannot claim any dependency exemptions on their joint income tax return for 2009. Samantha does not meet the gross income test, and neither Samantha nor Amanda meet the support test.
It's important to note that tax laws and regulations can be complex and may vary depending on individual circumstances. It's always recommended to consult with a tax professional or refer to the IRS guidelines for specific and up-to-date information.