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In Satisfying the Support Test and the Gross Income Test

question 96

Essay

In satisfying the support test and the gross income test for claiming a dependency exemption, a scholarship received by the person being claimed is handled the same way for each test. Do you agree or disagree with this statement? Why?


Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the percentage of income that goes to taxes.

Tax Rate

The percentage of a price or taxable amount that is payable as tax.

Percentage Calculation

The mathematical process of finding a part or portion of a number in terms of 100.

Percentage Calculation

The process of finding a part of a whole number or quantity, typically expressed as a fraction of 100.

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