Answer :
To determine who among Susie, John, Luke, and Will can claim Joyce as a dependent under a multiple support agreement, we need to understand how these arrangements work under tax law.
Understanding Multiple Support Agreements
- A multiple support agreement allows multiple individuals who collectively provide more than half of a person's support to take turns claiming that person as a dependent.
- To qualify for a multiple support agreement, one or more taxpayers together must provide more than 50% of the individual's total support.
- The individual claiming the dependent must provide at least 10% of the support.
Calculate the Percentage of Support Provided by Each Individual
- Joyce provides 10% of her own support.
- Susie provides 30% of Joyce’s support.
- John provides 5% of Joyce’s support.
- Luke provides 15% of Joyce’s support.
- Will provides 40% of Joyce’s support.
Total Support Provided by Joyce’s Children
[tex]\text{Total support provided by Susie, John, Luke, and Will} = 30\% + 5\% + 15\% + 40\% = 90\%[/tex]- Since Joyce's children together provide 90% of the support, they collectively provide more than 50% of her support, meeting one condition for the multiple support agreement.
Determining Eligibility to Claim Joyce
- Under a multiple support agreement, only those providing at least 10% of support can claim the dependent.
- Susie (30%), Luke (15%), and Will (40%) each provide at least 10%, thus are eligible.
- John provides only 5%, which is less than 10%, making him ineligible to claim Joyce.
Therefore, under a multiple support agreement, Susie, Luke, and Will can choose who may claim Joyce as a dependent.
Chosen Option: B. Susie, Luke, and Will
