What are the Dependents

Dependents

Identifying and determining the correct number of dependents is a critical component of completing the taxpayer’s return. The deduction for personal and dependency exemptions is suspended for tax years 2018 through 2025 by the Tax Cuts and Jobs Act. Although the exemption amount is zero, the ability to claim a dependent may make taxpayers eligible for other tax benefits. For example, the following tax benefits may all be associated with a dependent: child tax credit, additional child tax credit, credit for other dependents, earned income credit, child and dependent care credit, head of household filing status, and other tax benefits.

Who are dependents?

Dependents are either a qualifying child or a qualifying relative of the taxpayer. The taxpayer’s spouse cannot be claimed as a dependent. Some examples of dependents include a child, stepchild, brother, sister, or parent.

NOTE : Individuals who qualify to be claimed as a dependent may be required to file a tax return if they meet the filing requirements.

How do I apply the dependency tests?

The Marital Status and Household Information section of the intake and interview sheet addresses the issues concerning dependency, but you will still need to use your interview skills to clarify whether the individuals listed are eligible to be claimed as dependents.

Use caution when preparing this section of the taxpayer’s return. Use the Volunteer Resource Guide, Tab C, Dependents, for guidance on asking probing questions to verify the information on the intake and interview sheet. Avoid using information from the taxpayer’s prior year documents to complete this section.

What tests must be met for all dependents?

A dependent may be either a qualifying child or a qualifying relative. Both types of dependents have unique rules, but some requirements are the same for both.

To determine if an individual can be claimed as a dependent, begin with the rules that apply to both qualifying child and qualifying relative dependents:

• Dependent taxpayer test
• Joint return test
• Citizen or resident test Dependent Taxpayer Test

Dependent Taxpayer Test

A taxpayer (or taxpayer’s spouse, if filing a joint return) who may be claimed as a dependent by another taxpayer may not claim anyone as a dependent on his or her own tax return. Part I of the intake and interview sheet asks, “Can anyone claim you or your spouse as a dependent?” If taxpayers answer yes, they cannot claim a dependent. Use your interview skills because some taxpayers, particularly students, might not be sure of the answer to this question. An individual is not a dependent of a person if that person is not required to file an income tax return and either does not file an income tax return or files an income tax return solely to claim a refund of estimated or withheld taxes. If this is the situation, the taxpayer should answer “no” to “can anyone claim you as a dependent?”

Joint Return Test

A married person who files a joint return cannot be claimed as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid.

Example
Ruth, who had no income, was married in November of the tax year. Ruth’s husband had $30,000 income and had a filing requirement. Although Ruth’s father supported her and paid for the wedding, he cannot claim her as a dependent because she is filing a joint return with her husband.