Essay Chapter 3 / Research Project 2

906 Words Jan 25th, 2015 4 Pages
Sophia Durban maintains a household in which she, her son (Ryan), and her widowed mother-in-law (Isabella) live. Since 2012, she also has provided more than half of their support. Sophia’s husband, Karl, left for parts unknown in April 2012 and excepts for one postcard, has not been heard form since. In the postcard (no return address included) that Sophia received in March 2013. Karl announced that he planned to claim both Ryan and Isabella as dependents on his own tax return.

Ryan (age 19 in December 2012) graduated from high school on May 6, 2012, and plans to start college in 2014. He earned $8,000 in 2012 and $17,000 in 2013. Isabella’s income is negligible and originates from nontaxable sources (e.g., Social Security
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Is there any benefit to amend 2012 Federal income taxes?

Memo - Conclusion
For tax year 2013 Sophia Durbin does not fully meet the qualification for “abandoned spouse” and must file under the title married filing separately. To qualify, her principal abode must also be the primary residence of a child dependent as stated in Section 7703 (b)(1).

At the end of 2013, her son Ryan does not qualify as a child dependent. Section 152 (c)(3) deems a child dependant of his age, 20 years old at the end of 2013, must be a student. He did not attend school during 2013 and anticipates starting college in 2014.

Ryan also does not qualify as a dependant relative. His annual wages for 2013 are $17,000. Section 152 (d)(1)(B) requires a dependent relative’s annual income to be less than the current tax year’s dependent exemption amount. For 2013 this amount is $3,900.

Sophia Durbin’s mother-in-law, Isabella, does qualify as a dependent relative under Section 152 (d)(2)(G). Isabella’s sources of income are nontaxable and Sophia has provided more than half of Isabella’s support. Sophia can claim Isabella as a dependent.

Regarding amending 2012 taxes, Sophia would be considered as an “abandoned spouse” and eligible to file under head of household with 2 dependants. Isabella does qualify as a dependant relative under the same reason stated above.

Ryan qualifies as a dependant child even though his annual income of $8,000 which is more the 2012…