Filing taxes can be confusing, especially when it comes to claiming dependents. While it’s best to consult professional tax return preparation services, here is an overview of how to claim dependents on your 2019 tax return. 

A Brief Guide to Claiming Dependents

What Is A Dependent?

A dependent is someone you support, typically a child or relative. You must provide for at least half of their needs, including shelter, clothing, and food. Dependents are allowed to file individual tax returns, and can be married, but they can’t have filed a joint tax return for the year. They must be a US Citizen, National, or resident alien. Lastly, all dependents must have a Taxpayer Identification Number.

What Are The Rules For Claiming Children?

A “child” is defined as “a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of those.” They can’t file a joint return, and they must have lived with you for at least six months. They must be 18 or younger by years’ end, or under 24 if a student -- meaning they attended school full-time for at least five months of the year. The child must be younger than you, unless they’re disabled. If the child is a permanently disabled adult, and provides less than half their own support, you can claim them as a dependent. Should you find yourself in this situation, be sure to ask your accountant about the Child and Dependent Care tax credit.

What Are The Rules For Claiming Other Relatives?

For a parent or other relative, their gross yearly income can’t exceed $4,200 for 2019. So long as you pay more than half their household expenses, they aren’t required to live with you at least half ofthe year to be claimed as dependents (unlike children). Should more than one party provide support, IRS Form 2120 – Multiple Support Declaration, allows any family members who contribute more than 10% of the yearly total support to rotate claiming the dependent in different tax years.

What Are The Rules For Claiming Unrelated Persons?

Non-related household dependents, such as friends, domestic partners, or roommates, must live with you consecutively all year. Their income, like parents or other relatives, cannot exceed $4,200 gross for 2019, and you must have provided them at least half their support. The relationship between you and the dependent must not violate the law -- for example, they can’t be married to someone else, or be an illegal alien. Individual state laws vary when it comes to claiming non-blood relatives as dependents, be sure to verify your case meets local requirements.

For over 40 years, the team of Joe Heard, CPA, in Checotah, OK, has been providing accounting services, bookkeeping, and business consulting to locals. Joe and his accounting staff are committed to providing transparent and affordable services, including business tax returns, payroll service, business accounting, and retirement planning. Visit their website or call them at  (918) 473-1492 to schedule your free consultation.