If a Dependent Died Before the Last Day of the Year

question 27

True/False

If a dependent died before the last day of the year, the dependency exemption may not be claimed since the status on December 31 determines entitlement to the deduction.

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Definitions:

Insured Premium

The amount paid periodically to an insurance company for coverage, which guarantees compensation for specific potential losses.

Event Occurs

A moment or situation that takes place, typically triggering a specific reaction or process in a legal, contractual, or social context.

State

A political entity that possesses sovereignty, characterized by a defined territory, permanent population, government, and capacity to enter into relations with other states.

Insurable Interest

A stake in an insured property or life that would cause a person to suffer financial loss if the property were damaged or if the insured person were injured or died.