Dependent
What is a dependent?
A dependent is an individual supported financially by another.
More profound definition
The term dependent can be utilized in different ways, however in tax speech, which is the concentration here, it is somebody that a taxpayer can claim on a tax return to get an exemption or tax credit.
Dependent models
Dependents are generally spouses and unmarried, adopted, foster, natural or stepchildren. Be that as it may, they can likewise be relatives or flat mates.
For tax purposes, a child needs to meet certain tests to qualify as a dependent. The relationship test expects that the dependent be a natural child, stepchild, foster child or adopted child, or a kin or step-kin, nephew, niece or grandchild.
As a dependent, a child must likewise meet different tests, including the residency test (least six months per year with the claiming taxpayer); age test (under age 19, or under 24 if away at college); support test (child gave not exactly half of their own support).
There are certain special cases for the rules. For instance, for disabled persons, the age test doesn't have any significant bearing. The residency test is additionally postponed in certain conditions.
For tax purposes, qualifying relatives can likewise be dependents. They, too, must meet certain tests. For example, they can't be the taxpayer's qualifying child, nor might they at any point be any other person's dependent.
Qualifying relatives ought to be connected with the claiming taxpayer or on the other hand, on the off chance that not related, have lived with the taxpayer for the full tax year. Also, the taxpayer ought to have given the greater part of the dependent's support. Moreover, the qualifying relative's income can't surpass the exemption amount, which in 2017 is $4,050.
Qualifying relatives don't be guaranteed to need to live with the claiming taxpayer, yet once more, they must meet certain tests. Such relatives who live somewhere else incorporate a grandchild, kin, step-kin, step-parent, nephew, niece, uncle, auntie or any in-regulation, even after a marriage closes in divorce or death. What's more, once more, qualifying relatives must meet certain different tests.
Features
- To be claimed as a dependent, a person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.
- A taxpayer who can show that they have a dependent likewise might have the option to utilize this filing status to meet all requirements for certain tax credits.
- Having a dependent can qualifies a taxpayer for claim a dependency exemption on their tax return.
- Any person who documented a joint return (as a married person) can't claim anybody as a dependent on their tax return.
- A dependent is a person who depends on another person for financial support and can incorporate children or different relatives.
FAQ
The amount Is the Tax Credit for Each Dependent?
In 2021, the tax credit for every dependent was somewhere in the range of $3,000 and $3,600 relying upon the age of the child.
What Is a Dependent for Tax Purposes?
A dependent for tax designs is a qualifying child or relative of the taxpayer as spread out by the IRS. This incorporates a child, parent, kin, stepchild, yet not a spouse. There are tax benefits a taxpayer can claim for having a dependent.
What Is a Dependent Person?
A dependent is an individual that depends on someone else for support, most frequently financial support. A dependent can be a child, a relative, or some other individual that can't deal with themselves and depends on someone else to do as such.
