If Nancy pays for her mother's living expenses and provides more than half of her support, what can she claim?

If Nancy pays for her mother's living expenses and provides more than half of her support, she can claim a dependency exemption for her mother. This is because, under the IRS guidelines, a taxpayer can claim a parent as a dependent if they meet certain criteria, including providing more than half of their support and ensuring that the dependent's income does not exceed a certain threshold.

While it is true that living with the taxpayer is a relevant aspect for qualifying as a dependent in some cases, residence is not a requirement for claiming a parent as a dependent. As long as Nancy meets the support provision, she qualifies for the dependency exemption.

The other options do not apply here. For instance, claiming a standard deduction for Head of Household requires the taxpayer to have a qualifying person living with them, which does not apply to a situation where support is provided from a separate residence. Similarly, claiming a qualifying child exemption for a sibling would require the sibling to meet specific criteria, which in this case, focuses on the support for the mother. Thus, the most relevant and accurate answer is that Nancy is entitled to a dependency exemption for her mother.