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20 March, 05:15

Sam and Edith are married, file a joint return, and have three children, Adam (age 15, in high school) who lives with them, Alex (age 18, in high school) who lives with them, and Ann (age 20, a full-time student at an out-of-state college). Alex made $5,400 at a part-time job and filed a single tax return to recover his tax withholding. Sam and Edith provided more than half of the total support for all three children. How many dependents can Sam and Edith claim when they file their joint tax return?

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  1. 20 March, 05:16
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    Explanation:

    The child and dependent care tax credit allows Sam and Edith a $500 deduction for every child or dependent that is 13 or older. But two of their children do not qualify for the following reasons:

    Ann doesn't live with them. Alex earned money (more than the $4,200 threshold) and filed taxes separately.

    Therefore, they can only claim a dependent tax credit for Adam.
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