Frequently Asked Questions on Claiming Dependents

Claiming a dependent on your tax return can increase your refund significantly. However, before you can assume that someone in your household meets the IRS definition of a dependent, you need to do your research. Informing yourself starts with getting answers to the following questions.

Who Is a Dependent?

Simply put, a dependent is a child or other qualifying relative whom you can claim as a tax exemption. For someone to qualify as a dependent, that person must meet all of the following criteria:

• The person is a citizen of the United States, a U.S. national, or a resident alien. Residents of Canada and Mexico also qualify. If you adopted a child from another country, the child will still qualify as a dependent. However, the child must have lived with you for the entire year. If the legal adoption is pending, you can still claim the child as a dependent.
• The person is not married and filing jointly. The exception to this is when the person is filing the joint return solely to claim a refund. If the spouses filed separately, neither of them would qualify as a dependent if they owe taxes.
• The person is a Qualifying Relative or a Qualifying Child according to IRS dependent rules.

Who Is a Qualifying Child?
A qualifying child must meet all of the following criteria:

• The child should be your child, stepchild, foster child, sibling, or stepsibling. You may also claim the children of any of these people as your dependent.
• The person lived with you for more than half of the tax year. There are a few exceptions to this. For example, if the child was born during the tax year, you can claim them even if they were born on the last day of the year.
• The child is under age 19 at the end of the tax year, or under age 24 if they are a student. There is no age limit if the child is permanently and totally disabled.
• The child didn't provide more than half of their own monetary support.

Who Is a Qualifying Relative?
A qualifying relative must meet all of the following criteria:

• The person can't be claimed as a qualifying child on your tax return or on anyone else's tax return.
• The person must have lived with you all year or be a "relative who doesn't have to live with you," as defined by the IRS. Relative who don't live with you all year include the following:
  Children - There is no age limit for qualifying relatives, so you might be able to claim your adult children even if they are not disabled.
  Siblings (including stepsiblings, or half-siblings)
  Parents or Grandparents. (including in-laws) Note: foster parents do not qualify
  Aunts & Uncles
  Nieces & Nephews
  
• For any of these people to qualify as a dependent, the person can't have made more than $4,050 during the year, and you must have provided more than half of the person's financial support during the year.

Can Two People Claim the Same Dependent?

Only one taxpayer — or a married couple who is filing jointly — may claim each dependent.

If two people claim the same dependent, the IRS will apply tiebreaker rules to determine who has the right to the tax exemption. This often happens when two people are divorced. If divorced parents claim the same child as a dependent, the parent with whom the child lived for longer during the year will get the exemption. If the child lived with each parent for the same amount of time, the parent with the higher adjusted gross income can claim the exemption.

Can You Claim Your Child Even If They Have a Part-Time Job?

In most cases, yes. As long as you provided more than half of your child's support during the year, you can claim them as a dependent.

If your employed child is going to file a tax return, make sure they understand that they cannot claim the personal exemption. Someone who qualifies as a dependent on someone else's tax return can't claim a personal exemption. This is true even if for some reason, you choose not to claim your child as a dependent.

Other Than Tax Exemptions, Are There Any Benefits of Claiming Dependents?

Yes! Claiming dependents on your return may help you qualify for certain tax credits, including the Child Tax Credit and the Credit for Child and Dependent Care Expenses. Claiming dependents can also make you eligible to file as a Head of Household, and it is possible that you'll get a higher Earned Income Tax Credit.

How Can You Claim Someone as a Dependent on Your Tax Return?

Claiming dependents is easy. An online tax preparation service, such as e-file, will walk you through the steps, starting with helping you determine if there is anyone in your household whom you can claim as a dependent.

What If You Accidentally Claim Someone as a Dependent?
If you accidentally claim someone as a dependent who doesn't qualify, you will need to file an amendment with the IRS. Similarly, if you don't claim someone as a dependent who actually qualifies, you can file an amendment so you don't miss out on any money.

You want your refund to be as big as possible, and claiming dependents on taxes can help you get every penny that you're entitled to. Inform yourself about the rules regarding dependents so you can breeze through your taxes.