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| If you file a separate tax return, you can claim an exemption for your spouse only if your spouse had no gross income and is not filing a tax return and was not a dependent of another taxpayer. You generally cannot claim a married person as a dependent if he or she files a joint tax return, unless he or she files only to claim for a refund and no tax liability would exist for either spouse on separate tax returns. Additionally, you generally cannot claim a married person as a dependent if he or she files a joint tax return only if they file a joint tax return to get a refund of the withheld taxes. |
| Although a child can be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child to take an exemption for the child and the Head of Household filing status. Only one person can take the Child Tax Credit and the Earned Income Credit for that child. Also, only one person can claim the Credit for Child and Dependent Care Expenses and the exclusion from income for dependent care benefits. To determine which person can treat the child as a qualifying child to claim certain tax benefits, and in regards to the tiebreaker rules, if only one of the persons is the child's parent, the child is treated as the qualifying child of that parent. |
| There are four tests that must be met for a person to be your qualifying relative. The residency test is not one of these tests. A qualifying relative does not have to be under 19 at the end of the year and they don't have to be younger than you. To be your qualifying child, a child who is not permanently and totally disabled must be younger than you or your spouse. As long as the qualifying child is younger than one spouse is enough to meet this test. A step-parent, a legally adopted child or foster child does not have to live with you all year as a member of your household to meet the member of household or relationship test. However, a foster parent must live with you all year as a member of your household in order to meet the member of household or relationship test. |
| For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. If you and your spouse file separate tax returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. The year you provide the support is the year you pay for it even if you pay for the support with borrowed funds. |
| Capital items, such as furniture, appliances, and cars, that are bought for a person during the year can be included in total support. If you buy a $150 TV set as a birthday present for your 12-year-old child and the TV set is placed in your child's bedroom only for you child to use, it is considered support you provided. If you buy an item that is to benefit the entire family such a lawnmower so the child can keep the lawn trimmed, this item would not be considered support towards the child. Likewise, if you buy your child a car that is registered in your name and you both use the car equally, this also would not be considered support towards your child. |
| Nor are you considered to have provided more than half of your child's support if your child, using his personal funds, buys a car for $4,500 and you provided only $4,000 towards his support. Also, you have not provided more than half of your son's support if your son receives $2,200 from the GI Bill and he uses this amount for his education and you provided only $2,000 towards his support. Another instance of you not meeting more than half of your child's support is when you and your brother each provide 20% of your mother's support for the year but a two other people not related to her provide the other 60%. Hence, you do not have to be related to someone to claim an exemption for them under a multiple support agreement. |
| You can claim an exemption for someone even if you do not meet the more than half of their total support test. For example, if your father lives with you and receives 25% of his support from social security, 40% from you, 24% from his brother (your uncle), and 11% from a friend. Either you or your uncle can take the exemption for your father if the other signs a statement agreeing not to take the exemption. However, you have to have provided at least 10% of your dependent's support in order to do this. The person who agrees to take the exemption under a multiple support agreement must attach Form 2120, or a similar declaration, to his tax return and must keep for his records the signed statements. |
| Copyright © 2014 [Hera's Income Tax School]. All Annual Filing Season Program rights reserved. |
| Revised: 12/14/14 |
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