Can Jia's Parents Claim Her as a Dependent?
Which of the following statements most accurately describes whether Jia's parents can claim Jia as a dependent?
Multiple Choice:
1. Yes, Jia is a qualifying relative of her parents.
2. No, Jia fails the support test for both qualifying children and qualifying relatives.
3. Yes, Jia is a qualifying child of her parents.
4. No, Jia does not pass the gross income test.
Final answer:
No, Jia fails the support test for both qualifying children and qualifying relatives.
Explanation:
The most accurate statement that describes whether Jia's parents can claim her as a dependent is: No, Jia fails the support test for both qualifying children and qualifying relatives.
The support Jia received from her parents ($14,000) and grandparents ($9,000) does not exceed the total support she received throughout the year ($530,000). However, Jia's own income of $4,000 must be taken into account when determining if she meets the support test. Since her income is more than $4,200 (the 2020 gross income threshold for qualifying relatives), she fails the test and cannot be claimed as a dependent by her parents.