Qualified dependents vary. And most people know there are tax deductions for certain dependents. Below I am listing the qualified dependent list from the IRS.
|
Son |
Daughter |
Stepchild |
Grandchild |
|
Foster Child |
Grandparent |
Brother |
Sister |
|
Niece |
Nephew |
Aunt |
Uncle |
|
Father-in-law |
Mother-in-law |
Son-in-law |
Daughter-in-law |
|
Brother-in-law |
Sister-in-law |
Half Brother |
Half Sister |
|
Stepbrother |
Stepsister |
Stepfather |
Stepmother |
Your dependents can either live with you for 12 months of the year and you pay the cost and expenses for more than half of their living. The dependents incomes also must be less than the Taxpayers income and below a certain dollar amount. You can also include those that if you pay more than half of their expenses, but they do not live with you is also a dependent. A child must be younger than you and under 19 years old. Or a child up to the age of 24 and a full-time student and who is younger than you is considered a child dependent. Permanently disabled regardless of age would also be considered a dependent. Your relative must have less than $4700.00 in income as of 2023.
Other dependents would fall in the list above but are not children. There is a dependents credit for dependents of any age, valid social security numbers or tax identification numbers are required, and you qualify the support paid as in more than half for dependents living with you or not.
The taxpayer’s income determines the credit. The credits begin to phase at different income levels. For example, the dependent credit phases, out at $200,000 and $400,00 for married filing joint.
You will need to confirm that you pay expenses as in the form of paid bills and receipts. If you do not have proof of expenses and the IRS flags you for an audit you may have to pay back a refund. Also, if someone can claim the dependent as their dependent that would cause issues for your tax return. Parents that are divorced normally need to work this out with documentation to determine who can claim the child for tax purposes.
Keep it honest about your dependents as it can cost you more overtime. A spouse is not dependent. But the deduction limits and credit income thresholds are higher to give you more potential at lower tax brackets for two people such as a spouse. Determining your dependents would also come with planning. Planning to make sure you can write off support for a dependent and determining if that person would qualify. Hence, tax advising and planning is helpful throughout the year. (Commentary)
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