ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM | FREE SOLVED ANSWERS
For a qualifying relative to be claimed as a dependent, a person must either be related to the taxpayer, or be a member of the taxpayer’s household for the entire year. Select the relative who must be part of the taxpayer’s household for the entire year.
For a qualifying relative to be claimed as a dependent, a person must either be related to the taxpayer, or be a member of the taxpayer’s household for the entire year. Select the relative
who must be part of the taxpayer’s household for the entire year.
Multiple Choice
a. Mother
b. Sister
c. Cousin
d. Son-in-law
Answer: (c) Cousin
A qualifying relative can be claimed as a dependent if they meet certain criteria, including either being related to the taxpayer or being a member of the taxpayer’s household for the entire year. While a mother, sister, and son-in-law are typically considered relatives by blood or marriage, a cousin does not automatically qualify based solely on the relationship. Therefore, for a cousin to be claimed as a qualifying relative dependent, they must be a member of the taxpayer’s household for the entire year and meet other dependency tests (e.g., gross income, support).