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Nicholas
P. DiNatale, CPA -
Certified Public Accounting & Business Advisory
Taxpayer Resources
- FAQ
Who
can be a dependent on my tax return?
To
claim a person as a dependent on your income tax return, you must pass
5 tests:
- Household
or Relationship Test – The person in question must be a relative,
or have lived in the taxpayer’s home for the entire year. If the
person is not a relative, the relationship must not violate the laws
of your state of residence. If a person (child, relative or other person
otherwise qualifying for this test) is born or passes away within the
year, they will meet this test although they are not members of the
household for the entire year. This includes children who are born and
pass away within the same year.
- Joint
Return Test – A dependent may be single or married. If married,
that person cannot file their tax return as married filing jointly,
unless the joint return is filed only to claim a refund of tax withholdings,
and no tax liability would exist for either spouse if they had filed
separate returns.
- Citizenship
Test – The person must be a citizen of the United States, resident
alien, or a Canadian or Mexican resident. An adopted child who lives
with the taxpayer cannot be claimed as a dependent unless this test
is met. When an adoption is finalized, this test does not need to be
met if the dependent lived with the taxpayer for the entire year.
- Income
Test – A dependent cannot have gross income in excess of $2,700.
There is an exception for students: if a child is under age 19 at the
end of the year, or under age 24 at the end of the year and a full time
student. Gross income includes gross rental income, but does not include
tax-exempt income, or income earned incidentally by a disabled person
at a tax-exempt organization providing medical care.
- Support
Test – A taxpayer must provide more than half of a person’s
total support to claim them as a dependent If a potential dependent
is supported by two or more persons, the dependent must be a close relative,
or meet the household test for each person who provided over 50% of
the support. Taxpayers who provide over 10% of the support for a dependent
must file form 2120 Multiple Support Declaration to indicate who will
be claiming the dependent deduction.
There are
special rules for children of divorced parents. Generally, the parent
who has physical custody of the child will be able to claim the child
as their dependent regardless of whether one parent or the other provided
50% or more of the support, unless a custodial decision is specifically
spelled out in a divorce decree. An agreement between parents to allow
one or the other to claim a dependent is stated on form 8332 Release of
Claim to Exemption for Child of Divorced or Separated Parents.
All dependents listed on tax returns after 1998 must have a social security
number. You can apply for a social security number by filling out and
filing form SS-5. Call (800) 772-1213 or visit your local Social Security
Administration office to receive this form.
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