Requirements for Claiming a Dependent on your Tax Return

Requirements for Claiming a Dependent on your Tax Return

Introduction: What is a Dependent, and Why Is It Important?

Claiming a dependent is one of the ways you can use to save money on your taxes every year. However, many people are not sure whom to claim and how.

A dependent is a person who relies on another person for financial support. Financial support includes food, transportation to and from school or college, medical expenses, housing, and clothing, just to name a few.

It is important to know the difference between a dependent and a spouse because some people may not be able to claim certain tax credits if they are married. A dependent can either be a qualifying child or a qualifying relative of the taxpayer.

Thus, the Internal Revenue Service (IRS) defines a dependent as someone who meets all three of the following requirements:

• Is related to you
• Resides with you or is on the “Relatives who don’t have to live with you” list
• Is either under age 19 or a full-time student under the age of 24 at the end of the tax year and younger than the taxpayer (or the taxpayer’s spouse, if filing jointly), or is an elderly parent you live with

Below, I share the requirements for claiming common dependents when filing your tax returns.

Requirements for Claiming a Child on your Tax Return

The Internal Revenue Service sets the age at which an individual can be claimed as a dependent. The IRS considers an individual to be a dependent if he or she is your child and either under the age of 19 or under 24 and in school.

However, there is no age limit for permanently disabled children.

In order to claim a child on your tax return, you must meet the following qualifications:

• The dependent must live with you for more than half the year, but some exceptions apply. Contact a tax professional like me if you need help with claiming your child.
• The dependent cannot be married and file a joint return unless they are only filing to get a refund of taxes withheld.
• You must provide more than half the support for your dependent, even if they are working.
• The child cannot be claimed by another person as a dependent

Requirements for claiming an older relative

Even if you are taking care of your parent, you cannot just claim them as a dependent. Some rules control how you should do this when you file your tax returns.

Below, I share some questions you must answer before claiming an older relative like your parent or aunt ‘Regina’ whom you look after because she lost her husband and has no one to look after her anymore.

The state or country in which you live may have different requirements for claiming an older relative. Some states require a certain amount of time to pass before you can claim an older relative, while others allow immediate filing. See below for some common questions to ask yourself.

• Do they live with you?An elder relative must live at your residence all year or be on the list of “relatives who do not live with you” before you can claim them.
• Do they make less than $4,400 in 2022? Once their gross income is more than $4,400 in 2022, you cannot claim them,
• Do you financially support them? Provide more than 50% of their support throughout the year in order to claim them.

In order to claim a dependent relative, the individual must not have a gross income that exceeds $4,400 in 2022 (for tax returns to be filed by April 2023). Thus, if they earned more than this amount in 2022, you cannot claim your elderly relative or dependent.

Claiming Children From Divorced or Separated Parents

The process of claiming children from divorced or separated parents is not an easy one. There are many factors to consider before making any decisions.

This part will provide you with a guide on how to claim children from divorced or separated parents and what you need to know about the process.

There will always be one parent with custody of the children. And in most cases, the mother wins custody. However, regardless of custody, whoever has been paying child support may be able to claim custody of his children.

The amount of time that a parent needs to stay with a child in a calendar year also matters. A child must spend at least six months with a parent in order to claim the child.

And remember, the IRS set these rules so that only one parent can claim the child. If it feels like you can all claim, it is up to the mother and the father to decide who claims this year and who can claim next year.

Conclusion: More Rules To Consider

Finally, anyone you claim as a dependent must fulfill these conditions:

• They can qualify as a child or dependent
• Must be a U.S citizen, resident, U.S. national, or a resident of Canada or Mexico
• Be unmarried
• If married, they must not be filing jointly, or
• Only filing jointly to claim a refund of income tax withheld or estimated tax paid.

 In addition, when you claim someone as a dependent, ensure that no one is also claiming you as a dependent.

The IRS has the means to verify their eligibility, so always make sure that every box is ticked before making costly mistakes.

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Frequently Asked Questions

1. What does it mean to be dependent on a tax return?

This is a qualifying child or relative of the taxpayer for whom a tax filer claims an exemption on his or her federal income tax return.

2. Can you get a refund if you are a dependent?

Yes, even if you are claimed as a dependent, you can still file your own return to receive a refund of taxes withheld. However, you will not get back anything for Social Security or Medicare withheld.

3. Who is considered as dependents?

Children under the age of 19, those under the age of 24 and going to school, and those who are of any age and are permanently disabled are considered dependents. You can also claim elderly relatives who live with you if they fulfill all requirements, such as the income threshold they can earn.

4. Can you claim adults as dependents?

Yes, you can claim them, but there is an eligibility criterion they must fulfill.

5. Do you get taxed less if you claim a dependent?

Yes. Claiming a dependent reduces the taxes you owe. If you claim a dependent, you also can claim other tax credits that can further reduce your tax bill and even increase your tax refund. These tax credits include the child and dependent care credit and the earned income tax credit. You can also claim medical expenses deductions if you paid any medical expenses for your dependents.