Who qualifies as a dependent?

The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them. Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24.

Who is a dependent for IRS tax purposes?

A dependent is a person other than the taxpayer or spouse who entitles the taxpayer to claim a dependency exemption.

What is the tax benefit of claiming a dependent?

A tax credit reduces the amount of taxes you owe; if you owe $10,000 in taxes but receive a credit for $1,000, then you only owe $9,000. Most benefits from claiming a dependent are due to credits you can claim….Filing Status: Married filing jointly.

# of Qualifying Children Income Limit Maximum Credit
3 $57,414 $6,728

Can you claim someone as a dependent if they do not live with you?

Without the form, you cannot claim a child who did not live with you as a dependent because they are the qualifying child of someone else. To include Form 8332 with your return, you must print it and complete it. Mail your return along with Form 8332 to the IRS for processing.

What was the standard deduction for 2012?

Standard Deduction Amounts

Year Married filing jointly and surviving spouses Single filers
2012 $11,900 $5,950
2013 $12,200 $6,100
2014 $12,400 $6,200
2015 $12,600 $6,300

What was the estate tax exemption in 2012?

Federal Estate and Gift Tax Rates, Exemptions, and Exclusions, 1916-2014

Year Estate Tax Exemption Lifetime Gift Tax Exemption
2011 $5,000,000 $5,000,000
2012 $5,120,000 $5,120,000
2013 $5,250,000 $5,250,000
2014 $5,340,000 $5,340,000

Why do you need to know the rules for claiming 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 tax years prior to 2018, every qualified dependent you claim, you reduce your taxable income by the exemption amount, equal to $4,050 in 2017.

What are the requirements for a dependent tax refund?

The child must have lived with you for more than half of the year. 2. The child must not have provided more than half of his or her own support for the year. The child must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).

How much does claiming a dependent reduce your tax bill?

For tax years prior to 2018, every qualified dependent you claim, you reduce your taxable income by the exemption amount, equal to $4,050 in 2017. This can add up to substantial savings on your tax bill.

What kind of tax credits are available for dependents?

Tax credits available for taxpayers with dependents include the: child tax credit, worth as much as $2,000 per dependent under age 17 child and dependent care tax credit for child care expenses up to $3,000 for one dependent or $6,000 for two or more earned income tax credit of up to $3,461 for one dependent child and up to $6,431 for three or more