Tax Memorandum

Reference page is included and lists sources used in the paper. Sources are appropriately documented, although some errors may be present

iv. Jessie is not a member of the U.S. Armed Forces who served in a combat zone.

Section 152(a) provides that for a taxpayer to take a dependency exemption, the potential dependent must satisfy either the qualifying child requirement or the qualifying relative requirement. Section 152(b)(2) indicates that the taxpayer is not permitted a dependency exemption for a married dependent if the married individual files a joint return. Pursuant to section 152(c), the term “qualifying child” refers to an individual who has not furnished over one-half of his or her own support and who has not attained the age of 19 or who has not attained the age of 24, if a full-time student, as of the close of such calendar year. The term “qualifying relative” under section 152(d) includes, but is not limited to, an individual whose gross income is less than the exemption amount and to whom the taxpayer provides over-half of the total individual’s support for the calendar year in which such taxable year begins. Under Reg. Sec. 1.152 (a), support received from the taxpayer is compared to the entire amount of support which the potential dependent received from all sources, including support which the individual supplied himself. Support includes food, shelter, medical and dental care, education, recreation,

This was also the first year Kandace filed with her husband and was not a dependent for us.

First guideline to meet is the relationship test. (i.e. parents, grandparents, aunt, uncle, some in law's, also non relatives can qualify as long as their living with the filer does not violate state law, and they also are not a spouse at any point during the filing year in question.) Once it is determined that an individual meets the qualifying relative guidelines then it must be determined if they meet the income guidelines. They must not have gross income more than the personal exemption amount for the calendar year. As long as the two previous guidelines are met then it is determined whether the filer provided more than ½ the support for the relative for the calendar year in question.

Parents may claim a child tax credit for a dependent child who is 22 years of age at the end of the year if the child is a full-time student.

-Spouse B’s $8,000/month for 11 months of income from work because these are taxable wages that are paid to Spouse be for employment.

They will qualify for five exemptions, one for each of the dependent children, all under the age of 19 and that they provide over half the support for, and one personal

The other option afforded to the Ouray’s is to file separately as a married couple. Filing separately can be advantages under special circumstances. However, if the couple was to file separately, there are several restrictions. First being, that if one spouse cannot demonstrate more than one-half of a child’s support is provided by them, a multiple-support agreement must be filed. Next, if one taxpayer itemizes their deductions they must both take itemized deduction and same goes if one person takes a standard deduction, the other must as well. If filing status was to be separate, neither spouse can claim the earned income credit and the credit for child and dependent care expenses. Next, no deduction is allowed for the interest paid on educations loans, and only $1,500 of excess capital losses can be claimed by each person.

Cir. 1996); DeGuelle v. Camilli, 664 F.3d 192, 204 (7th Cir. 2011); Goren, 156 F.3d

By Charles H. Harris III and Louis R. Sadler (Albuquerque: Univ. of New Mexico, 2007. Print.)

She said that is not what Jeffrey actually received, she mentioned about $2000.00. I informed her that the SSP SNAP program states the gross income is counted.

1. All distributions (excluding reasonable salary) to Paula and Mary will be taxed as dividends to them. And the corporation could not deduct this part of distribution.

• The family is living is living at the poverty level. The mother is working full-time but only making slightly more than minimum wage.

2010 from pages 6 to 12 of this question paper for ease of reference in