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Tax advice

A married couple arrives at your office and is hoping to get tax advice for their situation. They have a 21-year-old daughter whom they support in her full-time college studies. The husband’s mother also lives with them and they support her in her daily living expenses. They don’t understand whether they can report the daughter or mother as dependents and think they may benefit though a ‘married filing jointly’ status because they each make over $150,000 a year. They need your help! What kind of guidance would you provide to them in this situation? What additional facts would you need to know?

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