Intuit Academy Tax Level 1 Practice Test

In Daniela's situation, the correct choice indicates that both her daughter and her father can be considered qualifying dependents. For an individual to be classified as a dependent, they must meet specific criteria set by the IRS.

A qualifying child, such as Daniela's daughter, generally needs to meet certain tests, including age, relationship, residency, financial support, and joint return criteria. Assuming her daughter fulfills these requirements, she qualifies as a dependent.

In addition to this, Daniela's father may also qualify as a dependent under the category of a qualifying relative. For him to be a qualifying relative, he must not have a qualifying child of his own, live with Daniela for more than half the year, have a gross income below the specified threshold (which changes periodically), and be supported predominantly by Daniela.

By meeting the requirements for both her daughter and her father, Daniela can benefit from tax deductions available for claiming dependents, such as the Child Tax Credit for her daughter and additional exemptions for her father, provided all the conditions are met.

The other options do not accurately consider both dependents' possibilities or overlook the qualifications necessary for each individual as laid out by tax regulations.