Question 62 of 100. Jerry (50) and Diana (49) are married and file jointly. They

Question

Question 62 of 100. Jerry (50) and Diana (49) are married and file jointly. They have three children, Rachel (23), Joel (21), and Timothy (19). Which individual would NOT be c of the ACA? Rachel lives all year with Jerry and Diana and works full-time at an advertising agency with an annual salary of $42,000. She at an advertising pays her parents $200 a month rent and is not a student. Joel is a full-time student at a university. He shares an apartment off-campus during the fall and spring semesters, but returns $5,000 he earns from a full-time summer job. Timothy is also a full-time student, but at City College. He stays all year with his parents. His parents pay his tuition. He does O to his parents' house for the summer. His parents pay his tuition and housing, but he pays his personal expenses from the not have a job, but regularly goes to visit his grandfather, Edward, and looks after him. Edward (74) is Jerry's father. He rents an apartment in a retirement village. His only income is SSI that is not sufficient to pay his support. Jerry and Diana provide the remaining amount, which amounts to more than half of Edward's support

Explanation / Answer

Child to be claimed as the member of of the tax household for the purpose of ACA has to qualify all the following conditions :

1) He should be related to the person filing joint return

2) The age of child should be below 19. Howeverif the child is a full time student then he/she should be below the age of 24.

3) The child should be living with you for more than half of the year

4) You should be providing more than half of the support to the child.

Since only Timothy satisfies all the above conditions of Qualifying child so only he is considered as the member of of the tax household for the purpose of ACA.

Relative (Father of Jerry) to be claimed as the member of of the tax household for the purpose of ACA has to qualify all the following conditions :

1) You should provide more than half of the relative's total support each year

2) you should be the only person claiming him in your return as relative.

Since Edward (father of Jerry) satisfies both the above conditions of Qualifying relative so he is considered as the member of of the tax household for the purpose of ACA.

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