TAX: Dependents

Question 1

As of 2018, there are no deductions for personal or dependency exemption?

Answer 1

True

Question 2

What is the criteria for a qualifying child?

Answer 2

1) . Relationship test: Natural child, stepchildren, adopted children, foster children, siblings, step-siblings, or descendants of any of these.
2) Residence Test- has to have the same residence for more than one-half of the tax year
3) Age Test: Less than 19 at the end of the tax year, or less than 24 if a full-time student for at least five months of the year. Unless that person is permanently disabled.
4) Joint Return: If the individual cannot be claimed if they file a joint return unless there is no tax liability on the return
5) Citizenship/residency test: The individual must be a resident of US, Canada, or Mexico
6) Not self-supporting test: Must have provided for more than 50% of her own support

Question 3

What are the rules for qualifying relative?

Answer 3

1) Relationship test: All common relatives except for cousins (does include aunt, uncles). Or any person who lives in the taxpayer’s home for the ENTIRE YEAR (so anyone could be a relative)
2) Support Test: The taxpayer must provide 50% more than the dependent’s total support (you have to be the one who pays for more than 50% of the support)
3) Joint Return Test
4) Citizenship test
5) Gross Income Test: $4,200 Test. This is waived if they are less than 19 years old or 24 years old and a full-time student

Question 4

How is the support test defined for a qualifying relative?

Answer 4

Food, clothes, lodging, medical, education, recreation, and certain capital expenses