Who Qualifies as a Dependent on Tax Returns?

Answer 1

When claiming dependents on tax returns, it is important to be sure the claim is legal. The line easily blurs between being a dependent and not being a dependent. There are a few simple things to keep in mind when claiming dependents on tax returns. A person may not even be able to claim his or her children, depending on certain circumstances.

Claiming Dependent Children

There is a space on tax forms to claim children as dependents. There are a few rules involved. The first rule is that no one else must claim them. If someone else claimed the children, they cannot be claimed on anyone else's tax forms. Divorced or separated parents should come to an agreement and have the agreement in writing as to which parent will claim the children. The IRS form 8332 is important in this situation. When more than two children are involved, the parents often split the dependents on their tax forms, each one taking one of the children.

Children can be claimed on tax forms up to the age of 19. The child must be 19 at the end of the year. A child may be claimed up to age 24 if he or she is a fulltime student who attends school 5 months out of the year. Children who are disabled may be claimed throughout their lives.

Other Children

There are other children that can be claimed on tax returns as dependents. These include stepchildren, siblings, adopted children and foster children. The dependent may also be a grandchild or niece/nephew. A dependent resides with the person making the claim 50% or more of the year to be eligible as a dependent.

Other Criteria

If someone is claimed as a dependent, the taxpayer must have paid more than half of the living expenses of the dependent. People providing more than 50% of their own support do not qualify as a dependent. Parents, grandparents, aunts and uncles and any "step" relations of such may also be claimed. Domestic partners and cousins may also be claimed if they fall under the criteria.

Claiming dependents can make a huge difference in the amount of tax owed. Dependents can be claimed whether the taxes have itemized deductions or standard deductions. It is well worth the effort and could mean other tax credits, such as the child care tax credit.