What Is A Dependent For Tax Purposes

What is​ a​ Dependent For Tax Purposes?
What are the​ qualifying characteristics of​ a​ dependent for tax purposes? Following is​ a​ general explanation on​ how to​ determine dependents,​ and how it​ relates to​ your tax status,​ liability and the​ credits you​ can claim on​ your tax return.
There are a​ few assessments that a​ person must pass in​ order to​ qualify as​ a​ dependent on​ a​ U.S .​
tax return .​
For starters,​ individual must be the​ taxpayer’s child,​ stepchild,​ foster child,​ sibling or​ stepsibling,​ or​ a​ relative of​ one of​ these,​ and the​ individual must live at​ the​ taxpayer’s residence for greater than 6 months of​ the​ tax year .​
There are exceptions for children of​ divorced parents,​ kidnapped children,​ and for children who were born or​ died during the​ year .​
The individual must be under the​ age of​ 19,​ or​ 24 if​ a​ full-time student .​
Finally,​ the​ individual must not have contributed more than one-half toward his or​ her own support during that year in​ order to​ qualify as​ a​ dependent .​
Other qualifying points include,​ U.S .​
citizenship and single status or​ married filing as​ a​ single person .​
If the​ individual fulfills all of​ these requirements,​ then any of​ the​ applicable deductions,​ exemptions,​ and credits can be used for them .​
Some of​ these include dependent day care expenses,​ child tax credits,​ medical expenses,​ earned income credit,​ and various itemized deductions .​
Determining eligibility often means the​ difference between owing money to​ the​ government and receiving a​ refund from them .​
The child and dependent care expenses cover things like daycare,​ after school programs,​ private childcare services,​ etc .​
Any qualifying children the​ child and dependent care expenses must be under the​ age of​ 13 .​
The child tax credit is​ similar to​ the​ earned income credit because it​ is​ a​ straight credit .​
Taxpayers with a​ qualifying dependent that is​ under 17 years old may only take the​ child tax credit .​
Determining if​ you​ have any dependents that you​ can claim on​ your annual tax return might take a​ little work,​ but it​ can be well worth it​ in​ the​ long run .​
You could be rewarded with a​ nice tax refund,​ thanks to​ the​ credits,​ exemptions,​ and deductions that your dependent(s) will give you​ the​ opportunity to​ claim.
What Is A Dependent For Tax Purposes What Is A Dependent For Tax Purposes Reviewed by Henda Yesti on July 06, 2018 Rating: 5

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