A taxpayer's elderly mother lived in a nursing home all year. The taxpayer paid 80% of her mother's total support. The mother had Social Security income of $9,000, which was entirely excluded from gross income. Which statement is correct regarding the mother's dependency status?
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AThe mother cannot be a qualifying relative because her gross income exceeds the exemption amount threshold.
BThe mother qualifies as a qualifying child because she is a direct ancestor of the taxpayer.
CThe mother qualifies as a qualifying relative because Social Security benefits excluded from gross income do not count toward the gross income test.
DThe mother can only be claimed if she lived in the taxpayer's home for more than half the year.
✓ Correct answer: C. The mother qualifies as a qualifying relative because Social Security benefits excluded from gross income do not count toward the gross income test.For the qualifying relative gross income test, only amounts included in gross income are counted; tax-exempt Social Security benefits are excluded from gross income and therefore do not count, so the mother's gross income for dependency purposes is zero.
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