The Rands are successful professionals with combined AGI of approximately $400,000. Their household includes two children: Henry (age 16) and Belinda (age 22). Belinda is not a student and has a job where she earns $15,000. After a short family meeting in early April, the parties decide that Belinda should claim Henry as her qualifying child. As a result, Belinda is able to deduct a full dependency exemption and claim a child tax credit and an earned income tax credit for a tax savings of more than $3,000. Had the Rands claimed Henry on their joint return, only a partial dependency exemption would have been allowed, and no child tax credit or earned income tax credit would have been available. These credits are phased out for higher-bracket taxpayers. Has the Rand family acted properly?No, Henry only meets the definition of a qualifying child to his parents not his sister Belinda. Therefore, Henry may not be reported as a qualifying child on Belinda’s return. No, the parents have not waived their right to claim Henry on the return; therefore, Belinda cannot claim Henry until the parents do so. Yes, Belinda’s claim of Henry is entirely proper since Henry meets the definition of a qualifying child as to both his parents and his sister.