Unlocking the Tax Puzzle: Independent vs. Dependent
Are you being falsely claimed as a Dependent? Are you supposed to be filing your tax return and you’re not? This article will help you understand what steps you need to take to make sure you are filing correctly.
Understanding the word: What do you have to do in order to be considered a dependent?
- A dependent must be a U.S. citizen, resident alien or national or a resident of Canada or Mexico
- A person can’t be claimed as a dependent on more than one tax return
- A dependent can’t claim a dependent on their own tax return
- You can’t claim your spouse as a dependent if you file jointly
- A dependent must be a Qualifying Child or Qualifying Relative
What is the Qualifying Child Test?
You must meet all these factors:
- Relationship: You must be related to the person that is claiming you as a dependent as a son, daughter, stepchild, or foster child, or descendant, OR as your brother sister, half-brother, half-sister, stepbrother, or stepsister, or a descendent of them
- Age: You must meet the age requirement
- Under age 19 at the end of the year and younger than you
- A student under age 24 at the end of the year and younger than you
- Permanently and totally disabled at any time during the year, regardless of age
- Residency: You must have lived with the people that are claiming you as their dependent for more than half the year.
- Temporary Absence: you will still be considered to have lived with them during periods of time when you or they are temporarily absent due to special circumstances, such as:
- Illness
- Education
- Business
- Vacation
- Military Service
- Detention in a juvenile facility
- Temporary Absence: you will still be considered to have lived with them during periods of time when you or they are temporarily absent due to special circumstances, such as:
- Support: You cannot be claimed as a dependent if you have provided more than half of your own support for the year
What is a Qualifying Relative Test?
You must meet all these factors:
- Not a qualifying child test: You do not qualify as a Qualifying Child
- Member of household or relationship test: you must either
- Live with the person all year as a member of their household OR
- Be a relative of them. Examples are your child, son, stepfather or son-in-law, etc.
- Gross Income Test: To meet this test, your gross income must be less than $4,700
- Support Test (for Qualifying Relative): Your support must be provided for more than half of your support throughout the calendar year.
If you don’t pass either the Qualifying Child or Qualifying Relative Tests, then you may not be claimed as a Dependent.
Should I file if I am claimed as a dependent?
Even if you don’t have to file, you should file a tax return if you can get money back. If one of these applies to you
- You had income tax withheld from your pay
- You made estimated tax payments for the year or had any of your overpayment for last year applied to this year’s estimated tax
- You qualify for the Earned Income Credit
- You Qualify for the additional Child Tax Credit
- You qualify for the refundable American Opportunity Credit
- You qualify for the credit for federal tax on fuels
- You qualify for the premium tax credit
If you have more questions about filing your taxes this quarter, you can make an appointment with the Volunteer Assistance Tax Program (VITA).
Sources
~ Anastasia Greene