Catherine de bourgh has one child, anne, who is 18 years old at the end of the year. anne lived at home for seven months during the year before leaving home to attend state university for the rest of the year. during the year, anne earned $6,000 while working part time. catherine provided 80 percent of anne's support and anne provided the rest. which of the following statements regarding whether anne is catherine's qualifying child for the current year is correct? a. anne is a qualifying child of catherine. b.anne is not a qualifying child of catherine because she fails the gross income test. c.anne is not a qualifying child of catherine because she fails the residence test. d.anne is not a qualifying child of catherine because she fails the support test.
The correct answer is:
Anne is a qualifying child of Catherine (a)
A qualifying child is one who meets the criteria to enable a tax-payer gain some qualifying-child-related tax benefits. In order to be a qualifying child there are some universal criteria/test that the person must meet:
1. Relationship: The person must be related to the tax payer whether by blood, or adoption, either as a foster child, sibling or step sibling or a descendant of some sort.
2. Age: the person must be below 19 years at the end of the tax year, or 24 years if the person is a full time student, for at least 5 months during the tax year, or the person is permanently or totally disabled at any time during the year.
3. Residence: must be in the same principal residence as the tax payer for more than half of the tax year, which exceptions such as divorce, seperated parents, kidnap, temporal absence, birth or death during the year.
4. Support: the child did not provide for more than one-half of his/her own support for the year.
In our example, Anne passed two of the tests which are that she lived in the same residence as Catherine, and Catherine provided more than 50% of her support during the year.