Unit 3: Dependents and Deemed Exemptions Flashcards
Tests to claim a dependent
Dependent Taxpayer Test
Joint Return Test
Citizenship or Residency Test
What is the dependent taxpayer test
you can’t claim a dependent if you can be claimed as a dependent yourself
only one person can claim a dependent
What is the joint return test?
you can’t be claimed as a dependent if you file joint returns except if you’re only filing for a refund and both spouses have no tax liability
What is the citizenship or residency test?
the dependent must be a citizen or resident of US, CAN, or MEX (w/ exception for foreign born adopted children)
What are the dependency rules for a spouse and registered domestic partners?
A spouse can’t be claimed as a dependent.
An RDP can be claim as a dependent but the claimant can’t file HOH if the RDP is the only dependent
What are the five tests for a qualifying child?
- relationship test
- age test
- residency test
- support test
- tiebreaker test
What is the relationship test to claim a qualifying child?
the dependent child must be related to the TP by blood, marriage, or adoption
What is the residency test to claim a qualifying child?
the child must have lived with the TP more than 6 months except for temporary absences
What is the support test to claim a qualifying child?
the child cannot provide more than 1/2 of his own support
What is the age test to claim a qualifying child?
the child must be under the age 19 or under 24 and a FT student, or permanently and totally disabled regardless of age
what is the tiebreaker test to claim a qualifying child?
if more than one TP attempts to claim a child as a dependent, the child is treated as a qualifying child in the following sequence:
by the child’s parents, if they file joint returns
by the parent, if only one of the TP is the child’s parent
by the parent with whom the child lived the longest during the year
by the parent with the highest AGI, if the child lived with each parent for the same length of time
by the TP with the highest AGI, if neither of the child’s parents can claim the child as a qualifying child
by a TP w/ a higher AGI than either parents who can also claim the child, but does not
What is the rule for claiming a qualifying relative as a dependent?
a qualifying relative can be of any age and does not have to be a family member if she meets the conditions of a qualifying relative
What are 4 tests to claim a qualifying relative?
not a qualifying child test
member of household or relationship test
gross income test
support test
What is a member of household or relationship test to claim a qualifying relative?
a dependent not related to the taxpayer must live with the taxpayer the entire tax year;
cousins are treated as unrelated persons and must also meet the gross income test
a family member who is related to the taxpayer does not have to live with the taxpayer
a taxpayer may not claim a housekeeper or other household employee as a dependent
Which family member is considered related to the taxpayer for the relationship test?
any type of child and their descendants
any type of siblings
any type of parents except foster parents
niece or nephew
in-laws
What is the gross income test to claim a qualifying relative?
a qualifying relative cannot earn more than the deemed exemption amount of $2,400 in 2019
What is the support test to claim a qualifying relative?
you must provide more than half the dependent’s total support during the year
What are special rules for divorced and separated parents to claim the child as a qualifying child?
A custodial parent may permit the noncustodial parent to claim the child.
How can a noncustodial parent claim a qualifying child if allowed by the custodial parent?
the noncustodial parent must attach Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent to his tax return
What are all the following conditions that apply for a child to be treated as the qualifying child of the noncustodial parent?
the parents are divorced or legally separated, of if they lived apart at all times during the last six months of the year
the child received over half of support for the year from the parents
the child is in custody of one (or both) parents
the custodial parent signs a written declaration (such as Form 8332 or other similar statement)
The special rules for divorced and separated parents do not apply to what following items?
determining HOH filin gstatus or eligibility for EITC as these are benefits that can be claimed by the custodial parent
How can a custodial parent revoke the release of claim to exemption?
Also using Form 8332 with the copy attached to the tax return for each year the child is claimed after the revocation
What is a multiple support agreement?
it is when two or more people jointly provide a for a person’s support
What are the rules for multiple support agreement?
family members together must pay more than 1/2 of the person’s total support, but not one member individually pays more than 1/2
the taxpayer who claims the dependent must provide more than 10% of the person’s support.
