Taxes and

Dependents

Who can I claim?

Why Claim a Dependent?

• A person can only be CLAIMED ONCE as a dependent! This means you can’t claim yourself if your parents are claiming you. AND you can’t claim your pets.

• For each dependent you can deduct $3,900 from your federal taxable income, which is likely to reduce your taxes.

• (The $3900 deduction may change.)

A child you support is a

“qualifying child”• To be a qualifying child, the child doesn’t have to be your

biological child, but must be related to you, such as a stepchild, adopted child, brother, sister, niece, nephew – you get the idea.

• The child has to be under age 19 unless permanently and totally disabled. An exception to this rule lets you claim an exemption if the child has been a full-time student for at least five months of the year and is under the age of 24.

A child you support is a “qualifying child.

• The child must be dependent and not-self supporting, must live with you unless living with the other parent in the case of divorce or separation or temporarily absent, such as being away at school.

• The child must be a US citizen, US national or a resident of the United States, Canada or Mexico during the year.

• And finally, you have to list the child’s social security number on your tax return.

Relatives you support – parents, grandparents, an uncle. You may claim them as a dependent

if they pass these 3 tests.

1. The person must either be a relative or a member of your household. The category of relatives is broad, and includes:• your child, adopted child, step child, foster child, or their descendants,

such as your grandchild descendant of any of them (for example, your grandchild) if they are not considered your “qualifying child”

• your brother, sister, half brother, half sister, stepbrother, or stepsister, or their descendants

• your father, mother, stepfather, stepmother, grandparent, or other ancestor• a brother or sister of your father or mother, or• your son-in-law, daughter-in-law, father-in-law, mother-in-law,

brother-in-law, or sister-in-law, but only while the marriage exists, not after it ends in death or divorce.

Qualifying relatives: 3 tests continued….

• 2. The person’s taxable income must be less than $3,900 (this goes up every year).

• 3. You must pay for more than half the person’s support during the year, unless the person is supported by several people who all agree in a multiple support agreement that you can claim the exemption.