A dependent is someone who relies on you for financial support and qualifies to be claimed on your tax return. Dependents are typically children, relatives, or even non-relatives like domestic partners, provided they meet IRS requirements.
Why Claim Dependents?
Claiming dependents can significantly reduce your tax bill by qualifying you for credits and deductions, such as:
Child Tax Credit (up to $2,000 per child)
Earned Income Tax Credit (up to $7,830 for families in 2024)
Dependent Care Credit (20–50% of childcare expenses)
Credit for Other Dependents (up to $500 for non-child dependents)
Who Qualifies as a Dependent?The IRS recognizes two types:
Qualifying Child: Must meet these criteria:
Relation: Your child, stepchild, sibling, or their descendants.
Age: Under 19 (or under 24 if a full-time student).
Residency: Lived with you for more than half the year.
Support: You provide over half of their financial needs.
Qualifying Relative: Must meet these criteria:
Relation or Residency: A relative (e.g., parent) or someone living with you full-time.
Income Limit: Earn less than $5,050 in 2024.
Support: You provide more than half of their support.
Who Can't Be Claimed?
Anyone claimed as a dependent by someone else.
Those filing a joint return with their spouse (unless solely for a tax refund).
Children who don’t meet the relationship, age, residency, support, or joint return tests.
Special Cases
Divorced Parents: The parent who has custody for most of the year typically claims the child unless specified in a legal agreement.
Elderly Parents: Multiple siblings supporting a parent can use a support agreement to decide who claims the dependent.
Domestic Partners: Eligible if they meet qualifying relative requirements.
How to Claim DependentsList dependents on Form 1040 with their name, Social Security number, and relationship to you. Ensure they meet all IRS criteria to avoid issues.
FAQs
Can adults be dependents? Yes, if they meet qualifying relative rules.
When should I stop claiming a child? When they exceed the age limit, provide over half their support, or move out.
Can a dependent earn money? Yes, but qualifying relatives must earn below $5,050 (2024).
Claiming dependents unlocks valuable tax benefits that can lower your tax liability or increase refunds.
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