In the case of Camille, who is eligible to claim her dependency exemption?

In determining who can claim a dependency exemption for Camille, it's essential to understand the criteria set forth by the IRS for claiming dependents. The primary considerations include who provides the child's financial support, the child's living arrangements, and any custody agreements.

In this scenario, Walter is the one who meets the requirements to claim Camille as a dependent. If he provides more than half of her financial support or has custody arrangements that align with the tax regulations, he qualifies for the dependency exemption.

Ida may not be eligible if she does not meet the necessary support or custody criteria. This can often occur in cases of divorce or separation, where only one parent qualifies to claim the child based on the IRS guidelines regarding residency and financial support.

Claiming a dependency exemption is significant as it can lead to tax benefits, such as a deduction and eligibility for certain tax credits, which can ultimately lower a taxpayer's tax liability. Therefore, having Walter as the correct answer highlights the importance of understanding the rules around custodianship and dependency, ensuring that tax benefits are appropriately claimed by the eligible parent.