Evan and Eileen Carter Are Husband and Wife and File

question 120

Multiple Choice

Evan and Eileen Carter are husband and wife and file a joint return for 2010.Both are under 65 years of age.They provide more than half of the support of their daughter,Pamela (age 25) ,who is a full-time medical student.Pamela receives a $5,000 scholarship covering her room and board at college.They furnish all of the support of Belinda (Evan's grandmother) ,who is age 70 and lives in a nursing home.They also support Peggy (age 66) ,who is a friend of the family and lives with them.How many personal and dependency exemptions may the Carters claim?

• A)Two.
• B)Three.
• C)Four.
• D)Five.
• E)None of the above.

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Definitions:

Buckley Amendment

Also known as the Family Educational Rights and Privacy Act (FERPA), a federal law that protects the privacy of student education records.

Lax Confidentiality

A condition where confidentiality measures are insufficiently stringent, potentially allowing unauthorized access to sensitive information.

Parent Teachers Association

An organization that brings together parents and teachers to collaborate on school activities, student well-being, and educational improvements.

State Board

An administrative body within a government tasked with regulating and overseeing a specified professional field or area of activity.