ThomasYork - Who can I claim as a dependent?

Individuals are allowed one exemption for themselves, their spouse if filing jointly, and each person that can be claimed as a dependent. For 2008, the exemption amount, which is a deduction from taxable income, is $3,500 per dependent. The exemption is phased out for higher income individuals.

Qualifying Child
To claim a qualifying child as a dependent, the following tests must be met:
The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
•  The child must be:
      (a) under age 19 at the end of the year,
      (b) under age 24 at the end of the year and a full-time student, or
      (c) any age if permanently and totally disabled.
•  The child must have lived with you for more than half of the year.
•  The child must not have provided more than half of his or her own support for the year.
•  The child must not file a return with the status married filing joint.
•  The child must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico, for some part of the year.
•  If you are claimed as a dependent on another individual's tax return, you cannot claim a child as a dependent.

Qualifying Relative
Even if a person is not a qualifying child, he or she may still be a qualifying relative. Unlike a qualifying child, a qualifying relative can be any age as long as the following tests are met:
•  The person is not a "qualifying child" of you or any other person.
•  The person is related to you (whether by birth or marriage) or lives with you all year as a member of your household.
•  The person's gross income for the year is less than $3,500.
•  You must provide more than half of the person's total support for the year.
•  The person must not file a return with the status married filing joint.
•  The person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico, for some part of the year.
•  If you are claimed as a dependent on another individual's tax return, you cannot claim another person as a dependent.

Required Circular 230 Disclosure: Any tax advice included in this written or electronic communication was not intended or written to be used, and cannot be used, by the taxpayer, for purposes of avoiding any penalties that may be imposed by governmental taxing authority or agency, or promoting, marketing or recommending to another party any transaction or matter contained herein.

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