Claiming Dependents on Your Tax Return

Claiming dependents – whether children or adult relatives – on your tax return can provide significant tax benefits to you. Each qualifying dependent you claim is an additional personal exemption. Qualifying dependents of the correct age and relationship to you may also make you eligible for a number of different tax credits, which can save you money dollar-for-dollar. These credits include:

1. Child Tax Credit
2. Earned Income Credit
3. Child and Dependent Care Credit

Having a qualifying dependent as a single filer may also make it possible to claim Head of Household filing status, which is usually beneficial as well.

The IRS has very specific criteria that you as the taxpayer – and any child or other relative – must meet to allow you to claim (a) qualifying dependent(s):

1. You as the filer may not be claimed as a dependent on anyone else’s return.
2. The dependent may not be married and filing jointly with their spouse – unless there would be zero taxes owed for either spouse if they filed separately, and they are receiving only a refund of withholding or estimated payments.
3. The dependent must be either a U.S. citizen, national, or resident alien. They may also be a dependent in some cases if they are a resident of Mexico or Canada.
4. The dependent may not be claimed as a dependent by any other taxpayer.
5. Qualifying children must have lived with you for over 50 percent of the tax year.
6. You must have been responsible for over 50 percent of the cost of a qualifying relative’s support.

Dependents must also meet certain criteria to be considered a “qualifying child” or a “qualifying relative.”
The IRS provides detailed descriptions of both sets of criteria.

Be aware that your tax return will be audited if you and another taxpayer both list the same person as a dependent.