Dependents

So your daughter is off to college and you're wondering if you can still claim her as a dependent? To be claimed as a dependent, a person must meet the following five tests, according to the IRS:

  1. Member of Household/Relationship Test — the person must be a relative or live in your household all year.

  2. Joint Return Test — the person can't file a joint tax return with someone else except to claim a refund of tax withheld.

  3. Citizenship Test — the person must be:
    – a U.S. citizen, resident or national, or
    – a resident of Canada or Mexico.

  4. Gross Income Test — the person must have less than $2,900 of gross income unless he/she is your child and is:
    – under 19 years of age, or
    – a full-time student (5 months of the year) and under age 24.

  5. Support Test — you must have provided over half the person’s total support, including food, clothing, shelter, education, medical expenses and recreation.

Assuming the person meets all of these tests, there are a couple of important points to remember. Be sure to include your dependent's Taxpayer Identification Number (TIN) when you file your return. In most cases, this is a Social Security number (SSN). Your dependent will not be able to claim a personal exemption on his/her own tax return if you are able to claim him or her. Finally, depending upon your income and filing status, the exemption amount for your dependent may be reduced or eliminated.


This daily Tax Tip has been provided by the Internal Revenue Service.

You may like these other stories...

Being an accountant doesn't mean you're giving investment advice to clients. However, at tax time, accountants often have to deal with the results of any investment advice clients obtained during the year—the...
Anti Burger Kings: Seven US companies shrinking tax the old-fashioned wayBurger King’s decision to combine with Canadian donut shop Tim Hortons is renewing controversy over the lengths some US companies will go to...
A new report released on Tuesday found that the US airline industry receives nearly $1 billion in tax breaks annually from states for jet fuel.The study, conducted by UNITE HERE International Union, a labor union that...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 26
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.