La Quinta, CA
(760) 895-3516

Thursday, April 30, 2015

Rules for Claiming Dependents in Coachella Valley

There are rules for claiming dependents on your federal tax return. These are important tests to see if you can claim your dependents. These rules apply here in Coachella Valley as well as in the rest of the Country.

Dependent Tax Payer Test

The dependent cannot file & claim dependents of their own

The first rule is that a person cannot be claimed as a dependent if they can be claimed as a dependent by another person. Let us explain with an example; If you claim your adult daughter as a dependent and your daughter has a child, she cannot file a tax return claiming that child. Because the daughter is being claimed by you (the parents), that means that you provide more than 50% of the total support, and for tax purposes, you are also most likely providing more than 50% of the total support for the daughter's child as well.

A couple filing a joint return can be claimed as a dependent by someone else, but cannot claim dependents.

This rule is much like the one above, only it addresses a person and a spouse. Let us explain with another example. Suppose in the example above, the daughter is married. You can claim both the daughter and her husband as dependents, but the daughter and husband cannot claim their children as dependents.

Joint Return Test

Generally you cannot claim a married person as a dependent if he or she files jointly unless they are only filing to get a refund (less than $3,800 of gross income for the year each). This rule is self explanitory.

Citizen or Resident Test

A person cannot be claimed as a dependent unless the person is a U.S. citizen, U.S. resident, U.S. national, or resident of Canada or Mexico for some part of the tax year. The dependent must be able to have a SSN, ITIN or ATIN

If you have any questions about filing income tax in the Coachella Valley, please don't hesitate to give Borders Bookkeeping a call.

Borders Bookkeeping
(760) 895-3516