Do you know you might be able to declare your sofa potato buddy as a dependent? Did you notice that the help of your struggling aunt who didn’t reside with chances are you’ll qualify your aunt as your dependent? Don’t really feel unhealthy, you’d be stunned how many individuals scratch their heads about dependency tax legal guidelines. The query “Who can I declare as my dependent?” has remained a high query for a lot of taxpayers and an space the place tax deductions and credit are sometimes missed or misstated on tax returns.
Beneath tax reform, you’ll be able to now not declare the dependent exemption — which was $4,050 for tax 12 months 2017 — however you continue to must know who qualifies as your dependent for different tax advantages just like the Youngster Tax Credit score (as much as $3,000 per qualifying baby over the age of six and as much as $3,600 for every qualifying baby beneath six) or the $500 tax credit score for dependents who aren’t your kids.
Whereas we’ll enable you to grasp who could also be eligible to assert as a dependent beneath, don’t fear about remembering these guidelines come tax time. For solutions to this query and anything associated to your tax state of affairs, TurboTax will ask you easy questions and provide the tax deductions and credit you’re eligible for based mostly in your solutions.
Who Can I Declare As a Tax Dependent?
Moreover, when you nonetheless have questions, you’ll be able to join reside through one-way video to a TurboTax Live tax expert out there in English and Spanish who can both enable you alongside the way in which or absolutely do your taxes from begin to end, in some instances at no cost.
The underside line is a dependent should be your “qualifying baby” or “qualifying relative” and meet particular assessments so as so that you can declare them.
The 5 assessments that qualify a toddler as a dependent
- Relationship: Should be your baby, adopted baby, foster baby, brother or sister, or a descendant of one in all these (grandchild or niece/nephew).
- Residence: Should have the identical residence for greater than half the 12 months.
- Age: Should be beneath age 19 or beneath 24 and a full-time pupil for at the very least 5 months. They are often any age if they’re completely and completely disabled.
- Assist: Should not have offered greater than half of their very own help through the 12 months.
- Joint Assist: The kid can’t file a joint return for the 12 months.
The 4 assessments that may qualify a relative as a dependent
- Not a Qualifying Youngster: They don’t seem to be the “qualifying baby” of one other taxpayer or your “qualifying baby.”
- Gross Earnings: The dependent being claimed earns lower than $4,300 in 2021.
- Whole Assist: You present greater than half of the entire help for the 12 months.
- Member of Family or Relationship: The particular person (a buddy, girlfriend, non-blood relative) should reside with you all 12 months as a member of your family or be associated to you.
Many taxpayers are stunned to search out they might be able to declare a boyfriend, girlfriend, home companion, or buddy as a qualifying relative if:
- They’re a member of your family your complete 12 months.
- The connection between you and the dependent doesn’t violate the legislation, for instance, you can’t nonetheless be married to another person. (Additionally, verify your particular person state legislation, as some states don’t mean you can declare a boyfriend or girlfriend as a dependent even when your relationship doesn’t violate the legislation).
- You meet all the opposite standards for “qualifying family” (gross revenue and help).
Dependent FAQ
Query: My 26-year-old resides with me. He works and made greater than $4,300 in 2021. Can I declare him as a dependent?
Reply: No, as a result of your baby wouldn’t meet the age check, which says your “qualifying baby” should be beneath age 19 or 24 if a full-time pupil for at the very least 5 months out of the 12 months. To be thought of a “qualifying relative”, his revenue should be lower than $4,300 in 2021 ($4,300 in 2020 additionally).
Query: I began work in September of this 12 months and had my child in March. Can I declare my child as a depending on my taxes?
Reply: Sure, even when you have a child on December 31, you’ll be able to declare them as a dependent in your taxes.
Query: My boyfriend absolutely helps me. We reside together with his mom, however my boyfriend pays our full help together with hire. His mom desires to assert us as dependents. Who can declare the deduction?
Reply: So long as your boyfriend will not be married (you’ll want to verify your particular person state legislation relating to claiming a boyfriend or girlfriend as some states don’t adjust to the federal legislation), provides over half of your help, and also you lived with him your complete 12 months and didn’t earn greater than $4,300, you’d qualify as his dependent. His mom couldn’t declare you since she didn’t present greater than half of the help.
Query: My partner has not labored all 12 months apart from one month, can I declare him as a dependent?
Reply: You can’t declare a partner as a dependent. Nevertheless, when you file married submitting collectively, you will have extra tax advantages.
Now that you’re armed with extra data about dependent tax legal guidelines, chances are you’ll discover that your buddy crashing in your sofa could enable you get a bigger tax refund.
Associated
TurboTaxLisa (198 Posts)
Lisa Lewis is a CPA and the TurboTax Weblog Editor. Lisa has 15 years of expertise in tax preparation. Her success is attributed to with the ability to interpret tax legal guidelines and assist shoppers higher perceive them. Lisa additionally has been a TurboTax product consumer for a few years and understands how the software program program works. Along with in depth tax expertise, Lisa additionally has a really well-rounded skilled background. She has held positions as a public auditor, controller, and operations supervisor. Previous to changing into the TurboTax Weblog Editor, she was a Technical Author for the TurboTax Client Group and labored on a challenge to jot down new FAQs to assist clients higher perceive tax legal guidelines. She may be seen serving to TurboTax clients with tax questions throughout Lifeline. For Lisa, getting well timed and correct data out to clients to assist them is paramount.