Citizens And Dependents Flashcards
Who is considered a U.S. citizen for tax purposes?
A U.S. citizen includes anyone born in the United States, anyone born to a U.S. citizen parent, a naturalized U.S. citizen, or someone born in U.S. territories like Puerto Rico, Guam, or the U.S. Virgin Islands.
What is the tax reporting requirement for U.S. citizens?
U.S. citizens must report worldwide income on their federal tax return.
What is a dependent?
A dependent is someone a taxpayer supports financially, which can include children or relatives.
What are the three tests to claim someone as a dependent?
- Dependent Taxpayer Test: You cannot claim a dependent if someone else can claim you as their dependent.
- Joint Return Test: You cannot claim a married person who files a joint return, unless it’s only to claim a refund.
- Citizenship or Resident Test: The dependent must be a U.S. citizen, resident alien, U.S. national, or a resident of Canada or Mexico for part of the year.
What is required to provide support for a dependent?
The taxpayer must provide more than half of the dependent’s annual support.
What are the four tests for a qualifying child?
- Relationship Test: The child must be your son, daughter, stepchild, foster child, sibling, or a descendant.
- Age Test: The child must be under 19 at the end of the year, under 24 and a full-time student, or any age if permanently and totally disabled.
- Residency Test: The child must live with you for more than half the year, except for temporary absences.
- Support Test: The child cannot provide more than half of their own support.
What is the tip regarding children of divorced or separated parents?
The custodial parent usually claims the child, but the noncustodial parent can claim the child if the custodial parent signs Form 8332.
What are the four tests for a qualifying relative?
- Not a Qualifying Child Test: The person cannot qualify as anyone’s dependent child.
- Support Test: You must provide more than half of their total support.
- Gross Income Test: The dependent’s gross income must be less than $4,700 (2023).
- Member of Household or Relationship Test: The person must either live with you all year or be related to you in specific ways.
What is an example of a qualifying relative?
If you paid more than $2,400 for your mother’s support, and she received $2,400 in Social Security and $300 in interest, she qualifies as your dependent.
What is a Multiple Support Agreement?
If several people provide support, only one can claim the dependent. The person claiming must provide at least 10% of the support, and others must sign Form 2120 agreeing not to claim the dependent.
What is an example of a qualifying child?
Your 18-year-old son lived with you all year, didn’t provide over half his support, and is unmarried. He qualifies as your dependent.
What is an example of a qualifying relative?
Your girlfriend lived with you all year, and you provided most of her support. She qualifies as a dependent.
What is an example of someone who does not qualify as a dependent?
Your 25-year-old son earned $5,000 and didn’t meet the age or gross income tests. He cannot be claimed as a dependent.
