As you gather your information for tax preparation, it is a good time to
review who is and who is not your dependent. Even though each individual
tax return is different, some tax rules affect every person who may have
to file a federal income tax return. These rules include dependents and
exemptions.
*Exemptions reduce your taxable income.* There are two types of
exemptions, personal exemptions and exemptions for dependents. For each
exemption you can deduct $3,700 on your 2011 tax return.
*Your spouse is never considered your dependent.* On a joint return, you
may claim one exemption for yourself and one for your spouse. If you’re
filing a separate return, you may claim the exemption for your spouse
only if they had no gross income, are not filing a joint return, and
were not the dependent of another taxpayer.
*Exemptions for dependents. *You can, in most instances, take an
exemption for each of your dependents. A dependent is your qualifying
child or qualifying relative. You must list the Social Security number
of any dependent for whom you claim an exemption.
*If someone else claims you as a dependent, you may still be required to
file your own tax return.* Whether you must file a return depends on
several factors including the amount of your unearned, earned or gross
income, your marital status and any special taxes you owe.
*If you are a dependent, you may not claim an exemption.* If someone
else – such as your parent – claims you as a dependent, you may not
claim your personal exemption on your own tax return.
*Some people cannot be claimed as your dependent. *You may not claim a
married person as a dependent if they file a joint return with their
spouse. Also, to claim someone as a dependent, that person must be a
U.S. citizen, U.S. resident alien, U.S. national or resident of Canada
or Mexico for some part of the year. There is an exception to this rule
for certain adopted children.
And even though they seem to always be at your house, your neighbors
children are not your dependent. That’s a different issue that we can’t
help you with here.
We can, however, help you with your tax preparation and tax planning.
