Updated for Tax Year 2017
OVERVIEW Rules on dependents can help you save thousands of dollars on your taxes. Yet many of us are not aware of who in our family may qualify as our dependent. Review the rules for claiming dependents here for a qualifying child or relative. Having trouble deciding if your Uncle Jack, Grandma Betty or daughter Joan qualifies as a dependent? Help is on the way. Here's a cheat sheet to quickly assess which of your family members you can claim on your tax return. Why claim someone as a dependent?If you have a family, you need to know how the IRS defines “dependents” for income tax purposes. Why? Because it could save you thousands of dollars on your taxes. For every qualified dependent you claim, you reduce your 2017 taxable income by $4,050. This can add up to substantial savings on your tax bill. Dependent rules also apply to other benefits, such as tax credits. Many of these credits are available only if you have qualified dependents. For example, both the child tax credit and the earned-income tax credit rely on these rules. In addition, the rules help you determine if you can write off dependent daycare expenses, medical expenses, various itemized deductions and most tax credits that involve children or family issues. Qualifying for these benefits can spell the difference between owing money and receiving a refund. The basic rules aren’t complicated. But it can be difficult to apply those rules to certain family situations. That’s especially true if you have a son off at college, a cousin who stays with you during the summer, or a daughter with a part-time job. The checklist below will help you decide which relatives you can claim as dependents. Who qualifies as a dependent?The IRS rules for qualifying dependents cover just about every conceivable situation, from housekeepers to emancipated offspring. Fortunately, most of us live simpler lives. The basic rules will cover almost everyone. Here’s how it all breaks down. There are two types of dependents, each subject to different rules:
For both types of dependents, you’ll need to answer the following questions to determine if you can claim them.
Qualifying childIn addition to the qualifications above, to claim an exemption for your child, you must be able to answer "yes" to all of the following questions.
Qualifying relativeMany people provide support to their aging parents. But just because you mail your 78-year-old mother a check every once in a while doesn’t mean you can claim her as a dependent. Here is a checklist for determining whether your mom (or other relative) qualifies.
We figure it out for youThe deduction for qualified dependents is one of the best tax benefits available. It can open the door to a large number of tax credits and deductions that can lower your tax bill. TurboTax will ask you simple, plain-English questions about your family and will determine for you who qualifies as a dependent on your tax return, so you can be sure you’re getting the biggest refund you deserve. Frequently asked questions
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