3.4 Exemptions

How Do I Apply the Dependency Test?

Review requirements and follow the interview tips to ensure that those listed qualify for the dependency exemption.

Check first if listed is a qualifying child then check if qualifying relative.

Who May Be Claimed as a Dependent?

Qualifying child, relative, or friend

Qualifying Tests for Children

must be a descendant

Must be under 19, or a full time student under 24

Must have lived with the taxpayer for more than half a year.

Tie breakers are done for a child who can be claimed by more than one parent

Custodial and Non custodial parents.

Qualifying test for Relatives

Pass the non qualifying child test

live with the taxpayer or be related to the taxpayer

Dependent must make less tan the exemption amount

Taxpayer must support dependent for more than the 50%

Dependent taxpayer test, joint return test, citizen or resident test

Dependent taxpayer test: If you can be claimed as a dependent you cannot claim anyone else.

Joint return test: a married person filing a joint tax return may not be claimed.

Citizen/Resident Test: must be a citizen, resident alien, US national, or resident of Canada or Mexico

Taxpayer Interview and Tax Law Application

Elaine's sons cannot be claimed because they make more than the claim fee

Elaine may claim them as they are her descendant and she provides for them.

When Can A taxpayer claim personal exemptions?:

No one else can claim them as a dependent

May not be able to be claimed at all

When Can Taxpayers Claim Exemption For Their Spouse?:

Married by the end of that tax year

Spouse cannot be claimed by someone else

File a joint return. If filing seperately, spouse may not file

If Spouse dies

Did not remarry

Was not legally seperated

Qualified to be claimed

Taxpayer Interview and Tax Law Application

Ray's wife died the year of taxfiling. No one else can claim her as a dependent. Ray may file a claim on her, and receive an exemption.