Questions: Katherine's niece, Susan (5), lived with her for nine months during the year, and her second cousin, Gregory (7), lived with her all year. Katherine (39) provided all of the children's support and is claiming them as dependents. Which is correct? Susan is Katherine's qualifying child for the Child Tax Credit (CTC), and Gregory is her qualifying individual for the Credit for Other Dependents (ODC). Both children are Katherine's qualifying children for the CTC. Niece is not a qualifying relationship for the CTC. Both children are Katherine's qualifying individuals for the ODC.

The answer is the first one: Susan is Katherine's qualifying child for the Child Tax Credit (CTC), and Gregory is her qualifying individual for the Credit for Other Dependents (ODC).

Explanation for each option:

1. Susan is Katherine's qualifying child for the Child Tax Credit (CTC), and Gregory is her qualifying individual for the Credit for Other Dependents (ODC).

   • This is correct. Susan, as Katherine's niece who lived with her for more than half the year, qualifies as a qualifying child for the CTC. Gregory, being a second cousin, does not meet the qualifying child criteria but can be claimed under the Credit for Other Dependents (ODC) since Katherine provided all of his support.

2. Both children are Katherine's qualifying children for the CTC.

   • This is incorrect. While Susan qualifies as a qualifying child for the CTC, Gregory does not because a second cousin is not considered a qualifying relationship for the CTC.

3. Niece is not a qualifying relationship for the CTC.

   • This is incorrect. A niece is indeed a qualifying relationship for the CTC, provided other criteria such as residency and support are met.

4. Both children are Katherine's qualifying individuals for the ODC.

   • This is incorrect. While Gregory qualifies for the ODC, Susan qualifies for the CTC, not the ODC, because she meets the criteria for a qualifying child.

In summary, Susan qualifies for the CTC, and Gregory qualifies for the ODC based on their relationship to Katherine and the support she provided.