Dependents

In general, a taxpayer may claim a personal exemption deduction for himself or herself, for his or her spouse provided a joint return is filed, and for any dependents. Dependents are defined as qualifying children and qualifying relatives. The rules on claiming dependency exemptions apply to the taxpayer's qualifying children and to certain other individuals as well, provided they share the same principal abode as the taxpayer for more than one-half the year. A dependency exemption is not available for any child who provides more than one-half his or her own support. In addition, a taxpayer cannot claim a dependency exemption for any dependent unless the taxpayer provides a correct taxpayer identification number for that dependent.

Qualifying Child Defined

A taxpayer can claim a dependency exemption for a qualifying child. A qualifying child is defined as a person related to the taxpayer (not only the taxpayer's child), who has the same principal abode as the taxpayer for more than one-half of the tax year, who is under age 19, or age 24 and a full-time student, and who has not provided over one-half of his or her own support for the calendar year in which the taxpayer's tax year begins. An individual who is permanently and totally disabled at any time during the calendar year is considered to satisfy the age requirements. The qualifying child must also be a U.S. citizen or resident of Canada or Mexico and not have filed a joint return with the child’s spouse for the year.

Related to the Taxpayer

A person is related to the taxpayer if the individual is a child or a descendent of a child, or a brother, sister, step-brother or step-sister of the taxpayer or a descendant of such a relative. A child is an individual who is a son, daughter, step-son, or step-daughter of the taxpayer.

Eligible foster children and adopted children who are legally placed with the taxpayer by an authorized placement agency are also included within the definition of a qualifying child. With regard to adopted children, the agency must be authorized by a government or governmental subdivision to place children for adoption.

Age Limitation

The qualifying individual must either be under age 19 or, if a full-time student, age 24. A student is any child who, during any five months of the year:

was enrolled as a full-time student at a school or educational organization; or
took a full-time, on-farm training course given by a school or a state, county, or local government agency.

An educational institution is one with a regular faculty, regular body of students, and an established curriculum. Educational institutions include primary and secondary schools, colleges, universities, and normal, technical, and mechanical schools, but do not include correspondence schools, employee training courses, or on-the-job training, except on-farm training.

Qualifying Child of More Than One Individual

If an individual is claimed as a qualifying child by two or more taxpayers for a tax year beginning in the same calendar year, there are tie-breaker rules that determine which taxpayer is entitled to claim the dependency exemption.

If both of the taxpayers claiming an individual as a qualifying child are the child's parents, (e.g., when the parents do not file a joint return), the child is deemed to be the qualifying child of the parent with whom the child resided for the longest period of time during the tax year. If the child resides with both parents for the same amount of time during the year, the parent with the highest adjusted gross income is entitled to claim the dependency exemption with respect to the child.

Qualifying Relatives

A taxpayer may claim a qualifying relative (an individual other than a spouse or qualifying child) as a dependent only if each of the following tests and specifications are met:

the support test;
the relationship test;
the citizenship test;
the gross income test;
the joint return test; and
the individual is not a qualifying child.

The Support Test

A taxpayer must provide more than one-half of the support of a qualifying relative who is claimed as a dependent for the calendar year in which the taxpayer’s taxable year begins.

The Relationship Test

An individual (other than a qualifying child) satisfies the relationship test if the individual either has one of the specified relationships with the taxpayer or has the same principal place of abode as the taxpayer and is a member of the taxpayer's household.

a child, or descendant of a child;
a stepchild;
a brother or sister, by whole or half blood;
a stepbrother or stepsister;
a father or mother, or ancestor of either (grandfather, great-grandfather, etc.);
a stepfather or stepmother;
a son or daughter of a brother, sister, half brother or half sister (niece or nephew);
a brother or sister of a father or mother (uncle or aunt);
a son-in-law or daughter-in-law;
a father-in-law or mother-in-law; or
a brother-in-law or sister-in-law.

Once a relationship is established, death or divorce does not terminate it. Thus, for example, the relationship of a son-in-law and mother-in-law survives the spouse's death or a divorce.

The Citizenship Test

An individual must be a U.S. citizen or resident to be claimed as a dependent. A person who is not a U.S. citizen can be claimed as a dependent if she is a U.S. national (e.g., an American Samoan) or a resident of the United States, Canada, or Mexico at some time during the calendar year in which the taxpayer’s taxable year begins.

The Gross Income Test

Generally, a taxpayer cannot take a dependency exemption for an individual if that person had gross income equal to, or greater than, the exemption amount for the year ($3,500 in 2008). This test does not apply if the person is the taxpayer’s child and is either under age 19, or a student under age 24. A child attains a given age on the anniversary of the date that the child was born.

The Joint Return Test

A taxpayer cannot claim a dependency exemption for a married individual who files a joint return for a tax year beginning in the same calendar year in which the taxpayer’s taxable year begins. The exemption may be claimed, however, if neither the married dependent nor his spouse is required to file a return, even if they do file to claim a refund of tax withheld.

Not a Qualifying Child

To be a qualifying relative, the individual cannot be a qualifying child of the taxpayer or of any other taxpayer.