Is Your Child or Relative Dependent For Tax Purpose ? Check Out Rules !

dependent meaningInternal Revenue Code not only provides you personal exemption to all individual tax payer , but additional personal exemption for all dependents- qualifying child or relatives or even non-relatives- are also allowed provided you fulfill the conditions for such claim.So ,here are the check list of conditions you must fulfill if you desire to claim anyone as dependent.

  1. An individual , whether a child or relative is not a dependent for tax purpose , you do not spend on their expense at least more than 50 % . In other words, law reacquires that you support the person who you claim as dependent financially by bearing at least 51 % of their annual cost of living.
  2. The individual must be a U.S. citizen, U.S. national, or a resident alien.
  3. The person claimed as dependent must have either Social Security Number or an Individual Taxpayer Identification Number (ITIN) or an Adoption Taxpayer Identification Number (ATIN).
  4. If Child is Claimed as Dependent ,then
    1. The child must live with you for at least half of the year.
    2. The child must fall within any of the following
      1. your son,
      2. daughter,
      3. stepchild,
      4. foster child,
      5. brother,
      6. sister,
      7. stepbrother,
      8. stepsister, or
      9. a descendant of any of those.
    3. The child must be 18 or younger at the end of the year, or 24 or younger if a student.
    4. The child must be younger than you (or your spouse, if married filing jointly), unless the child is disabled.

Please note that student means  the child must have attended school full-time during at least five months of the year. The five months don’t have to be in a row.

5. If  you   you are claiming your  parent or other relative as dependent for tax purpose , then you must see that following conditions are fulfilled :

  • The person should not have  gross yearly income over $4,000 . (tax year 2015)
  • The person is not claimed by anyone else as dependent .
  • The person must be either related to you or
  • The persons  have lived with you all year as a member of your household. But this rules does not apply to parents. You can claim them as dependent despite the fact that they do not reside with you