Question - Jane, age 65, who lives with her unmarried son, Jack, received $7,000, which was used for her support during the year. Her sources of support were as follows:
Social Security Benefits $1,500
Jack 2,600
Carol, an unrelated friend 800
Dwayne, Jane's son 500
Emma, Jane's sister 1,600
Total $7,000
a. Who is eligible to claim Jane as a dependent?
b. What must be done before Jack can claim the exemption?
c. Can anyone claim head-of-household status based on Jane's dependency exemption? Explain.
d. Can Jack claim an old age allowance for his mother? Explain.