• Skip to primary navigation
  • Skip to main content
Good Financial Cents®
Content is based on in-depth research & analysis. Opinions are our own. We may earn a commission when you click or make a purchase from links on our site. Learn more.
  • Make Money
    • Get Money Now
      • Ultimate Guide to Making Money
      • Need Money Now
      • Get Free Money Fast
      • Make Money Fast
      • Make $1K Per Month
      • Make $100 Per Day
    • Control Your Destiny
      • Self Employed Jobs
      • Make Money from Home
      • Hobbies That Make Money
      • How to Become a Freelance Writer
      • Small Business Ideas to Start
      • How to Become an Independent Contractor
      • Best Online Jobs
    • Passive Income
      • Passive Income Ideas
      • Multiple Streams of Income
      • Extra Income
      • Residual Income Ideas
      • Learn to Sell e-Books
      • Make Money on Facebook
      • Make Money on Tiktok
      • Best Online Survey Sites to Make Money
    • Explore More
      • Best Side Hustle Ideas
      • Make Money for Teens
      • Best Online Colleges
      • Best Jobs No College Degree
      • Become a Millionaire
      • Careers for the Future
  • Manage Money
    • Best Of
      • Budgeting Tools
      • Personal Finance Software
      • Best Cashback Cards
    • Company Reviews
      • Personal Capital vs Mint
      • Personal Capital Review
      • SmartAsset Review
    • Guides
      • Buy or Lease a Car
      • What is Liquid Net Worth?
      • Setting Financial Goals
      • How to Budget
      • Ways to Save Money
    • Explore More
      • How Much Car Can I Afford?
      • Best Auto Refinance Companies
  • Invest
    • Best Of
      • Best Short and Long-Term Investments
      • Best Low Risk Investments
      • Best Online Stock Brokers
      • Best Crypto Exchanges
      • Best Short Term Investments
      • Best Long Term Investments
      • Best Trading Platforms
      • Best Investment Apps
    • Company Reviews
      • Lending Club
      • Robinhood
      • M1 Finance
      • Ally
      • TD Ameritrade
      • Fundrise
      • Betterment
      • Etrade
      • Wealthfront
    • Guides
      • Investing for Beginners
      • Investing Small Amounts of Money
      • Investing in Real Estate
      • No Money Down Real Estate
      • Bonds vs Stocks
      • Peer to Peer Lending
      • Best Hedges Against Inflation
      • Safe Bitcoin Investing in 2023
    • Explore More
      • Bitcoin vs. Real Estate
      • Betterment vs Wealthfront
      • Investing for College Students
      • Stock Market Alternatives
    • By Investment Amount
      • How to Invest $100
      • How to Invest $1K
      • How to Invest $2k-$3k
      • How to Invest $5K
      • How to Invest $10K
      • How to Invest $15k
      • How to Invest $20K
      • How to Invest $30k
      • How to Invest $50K
      • How to Invest $100K
      • How to Invest $200K
      • How to Invest $500K
      • How to Invest $1M
  • Taxes
    • Best Of
      • Best Tax Relief Companies
      • Best Tax Software
    • Guides
      • Federal Income Tax Guide 2023
      • Taxes and Cryptocurrency
      • How to Do Your Own Taxes
      • How to Invest Your Tax Refund
      • Hiring a Professional Tax Preparer
      • Tax Tips for Freelancers
    • Company Reviews
      • TurboTax Review
      • H&R Block Review
      • Taxslayer
      • Tax Act
  • Insurance
    • Best Of
      • Best Life Insurance
      • Best Home Insurance
      • Best Auto Insurance
      • Cheap Term Life Insurance
      • Car Insurance For Young Adults
    • Guides
      • Term vs Whole Life
      • Different Types of Car Insurance
      • Average Cost of Car Insurance
    • Explore More
      • Life Insurance Over 50
      • Life Insurance Over 80
      • $1 Million Life Insurance
      • $2 Million Life Insurance
      • $3 Million Life Insurance
    • Company Reviews
      • Banner Life Insurance
      • Ladder Life Insurance
      • Health IQ
      • Haven Life
      • Policygenius
      • State Farm Auto Insurance Review
  • Retirement
    • Roth IRA
      • Best Places to Open a Roth IRA
      • Best Investments for Roth IRA
      • 7 Roth IRA Secrets
      • Roth IRA Conversion Guide
      • Roth IRA Rules
      • Roth IRA vs Roth 401k
      • Are Roth IRA Contributions Tax Deductible?
    • 401(k)
      • 401(k) Limits
      • 401(k) to Roth Rollover
      • Is 401(k) Enough for Retirement?
      • Maxed Out 401(k): What's next?
    • Traditional IRA
      • Traditional IRA Rules and Limits
      • Traditional IRA vs. 401(k)
      • Simple IRA Rules
      • SEP IRA Rules
      • How Much Do You Need to Start an IRA?
    • Explore More
      • SEP IRA vs. Roth IRA
      • 457 Plan for Successful Retirement
      • 401a Rollover Rules
      • How to Retire at 50
      • How to Retire at 55
  • Banking
    • Best Of
      • Best National Banks
      • Best High-Yield Savings Accounts
      • Best Checking Accounts
      • Best Savings Accounts
      • Best CD Rates
      • Best Money Market Accounts
    • Company Reviews
      • BBVA
      • Synchrony
      • Wells Fargo
    • Explore More
      • 9 Banking Alternatives for 2023
      • What is a Credit Union?
  • Home
    • Best Of
      • Best Mortgage Lenders
      • Best Mortgage Refinance Companies
      • Best Home Warranties
      • Best Homeowners Insurance
      • Best VA Loans
      • Best Mortgage Rates
      • Best Moving Companies
      • Best Home Security
    • Guides
      • Home Buying Checklist
      • Online Home Appraisal
      • How Much House Can I Afford?
      • First-time Homebuyer Programs
      • How to Get Approved for a Home Loan
      • Save Money When Building a House
      • How to Save for a Downpayment
      • When to Refinance Your Mortgage
    • Explore More
      • 15 vs. 30-year Mortgage
      • Home Warranty vs. Home Insurance
      • Veterans United Home Loan Review
      • Quicken Loans Review
      • HELOC vs Second Mortgage
      • DCU Mortgage Review
      • Costco Mortgage Program Review
      • USAA Mortgage Loan Review
  • Credit
    • Best Of
      • Best Credit Repair Companies
      • Best ID Theft Protection Services
      • Best Credit Report Options
      • Best Bad Credit Loans
    • Guides
      • How to Build Your Credit Score
      • How to Raise Your Credit Score in 5 Months
      • How to Dispute Your Credit Report
      • Hot to Remove Collections from Your Credit Reports
      • How Identity Theft Destroys Your Credit Score
    • Explore More
      • What is a Good Credit Score?
      • What is a Bad Credit Score?
  • Debt
    • Best Of
      • Best Debt Consolidation Loans
      • Best Personal Loans
      • Best Student Loans
      • Best Student Loan Refinance
    • Guides
      • What is Debt Consolidation?
      • How to Get Out of Debt
      • How to Get a Personal Loan Approved
      • How to Pay Off Student Loans Faster
      • Should I Consolidate My Debts?
      • Should I File for Bankruptcy?
    • Company Reviews
      • Credible
      • Sofi

5 Tests To Claim a Dependent On Your Tax Return

https://www.goodfinancialcents.com/wp-content/uploads/2019/07/MG_5503-150x150.jpg
  • Written By:
    Jeff Rose, CFP®

    Jeff Rose, CFP®

    Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance...

    Read More
  • Updated: March 15, 2022
  • 2 Min Read
  • Advertising Disclosure

    Advertising Disclosure

    GoodFinancialCents® has an advertising relationship with the companies included on this page. All of our content is based on objective analysis, and the opinions are our own. For more information, please check out our full disclaimer and complete list of partners.

Quality Verified THE GFC® PROMISE
shield check icon
Quality Verified

GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

shield check icon
Why You Can Trust GoodFinancialCents®

GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

Ever been in a situation where you’ve had somebody staying with you for an extended period of time?

Maybe it was the relative that was going to stay with you for a “brief period of time” until they “got back on their feet”.

Heard that one before?

Or maybe you’ve had to have a parent move in with you where you’ve had to take care of them.

If you find yourself in a similar situation, you might be wondering what tax deductions are in store for you.

The following list of my favorite tax preparation softwares make understanding the tax deductions you qualify for simple and understandable.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Enter ZipCode:
#1
Our Partner
SEE DETAILS
  • Get your maximum refund, guaranteed
  • Capture Your W-2 with Your Smartphone
  • Search Over 350 Deductions
  • Updated with the latest tax laws
  • Help with life changes (dependents, status)
  • Expert support (phone and live chat)
  • Full-service tax preparation available in English or Spanish
#2
Our Partner
SEE DETAILS
  • #1 rated on Trustpilot in the tax prep software category
  • Free simple returns- $0 Federal, $0 First State 
  • Choice of multiple plans to suit a variety of tax filing needs
  • 100% accuracy – guaranteed 
  • Guaranteed maximum refund 
  • Pay nothing out-of-pocket 
  • Expert phone, email, & live chat support 
  • Self-employed and tax law change guides available
#3
Our Partner
SEE DETAILS
  • Three tiers of federal tax return filings, including a free version
  • Paying tiers cheaper than most competitors on the tax return market
  • Educational content helps you get informed about how to fill out your taxes
  • Accredited with the Better Business Bureau, with an A+ rating
  • 4.2 rating on Trustpilot.com
#4
Our Partner
SEE DETAILS

20% Off Federal & State Consumers 1040 Online Tax Returns

  • 100% accuracy guarantee
  • Low State Additional rates
  • Maximum refund guarantee
  • Free tax help and audit support
  • Maximize deductions for donations
  • Free simple and complex tax forms
  • Tax alerts
#5
Our Partner
SEE DETAILS
  • #1 tax filing software for freelancers and 1099
  • Direct tax filing for $89 (Federal & State)
  • Deductions by text message
  • Two-week free trial, cancel anytime
  • Afterward it is $16/month
#6
Our Partner
SEE DETAILS
  • Accuracy guarantee
  • Fast refunds
  • Maximize deductions
  • Maximize credits
  • Covers all types of returns
  • Audit assist
#7
Our Partner
SEE DETAILS
  • Special promotion: 20% Off
  • File Online or in Person
  • 4000+ Locations Nationwide
  • Accuracy/Calculation Guarantee
  • Maximum Refund Guarantee
  • Chat, Social Media, Email, and Phone Help
#8
Our Partner
SEE DETAILS
  • Maximum refund guarantee
  • Free chat/tech support
  • Price guarantee
  • Accuracy guarantee
  • Import prior year's tax return

To be able to claim a dependent on your return (and don’t forget to file by the tax deadline), there are 5 tests that you have to pass in the eyes of the IRS.  Here they are:

1.  Support Test

The taxpayer must provide more than half the support of the claimed dependent, except for special rules with respect to multiple-support agreement and children of divorced or separated parents.  Support includes food, lodging, clothing, education, medical and dental care, recreation, transportation, and other necessities.

2.  Gross Income Test

The person claimed as a dependent must have a gross income of less than the annual personal dependency exception amount.

For example, this amount is $3,800 in the 2012 tax year ($3,900 in 2013).  However, the ceiling does not apply if the dependent is a child of the taxpayer is under age 19 at the end of the calendar year or a full-time student at under age 24 at the end of the calendar year.

3.  Member of Household Relationship Test

The person claimed as a dependent must be related to the taxpayer in a specific way, i.e. the natural or adopted child or parent, or must be a member of the taxpayers household for the entire tax year.

A parent or child does not have to live in the same household as long as other criteria are met.

For example, a parent living in the home or in an assisted living facility could still meet the test.  A disabled child in a residential treatment center can meet the support test as well.

4.  Joint Return Test

The person claimed as a dependent must not generally file a joint income tax return with another unless the only reason to file the return was to obtain a full refund of tax withheld.

5.  Citizen/Residency Test

The claimed dependent must be a US citizen, national or resident of the United States or a resident of Canada or Mexico at some time during the calendar year in which the tax year of the taxpayer begins.  In addition to these five tests, an individual must be claimed as a dependent on another person’s return, like a parent, cannot claim a personal exemption for himself.

Finally, the dependent has a reduced standard deduction.  For 2012, this reduced amount is the greater of $950 or the dependent’s earned income plus $300 as long as that total is less than the dependent’s standard deduction.  This deduction amount, however, cannot exceed the basic standard deductions for the dependent taxpayer’s filing status, which in 2012 is $6,100.

Dependency exemption rules are complicated, so review IRS Publication 501 and talk to a tax advisor before staking your claim. And don’t forget that your dependent may need to file a tax return as well.

5 tests to claim a dependent on your tax return

Resource: IRS Pub 503

Facebook LinkedIn Twitter

About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion - educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.


Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University - Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® - Accredited Asset Management Specialist - and CRPC® - Chartered Retirement Planning Counselor.

While a practicing financial advisor, Jeff was named to Investopedia's distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC's Digital Advisory Council.

Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

Facebook Twitter LinkedIn

You Might Also Enjoy

How is Passive Income Taxed?

How is Passive Income Taxed?

SEP IRA vs. Roth IRA: What's the difference?

SEP IRA vs. Roth IRA: What's the difference?

Best Tax Software Programs for 2023

Best Tax Software Programs for 2023

8 Best Tax Relief Companies of 2023

8 Best Tax Relief Companies of 2023

How to Handle Taxes and Cryptocurrency

How to Handle Taxes and Cryptocurrency

3 Simple Ways to Do Your Own Taxes

3 Simple Ways to Do Your Own Taxes

One Response

  1. winfred perry May 26, 2020

    i can not find the threshold amount for m/f/j pertaining to dependent exemption
    or for any exemptions

    Reply

Leave a Reply

Cancel reply

  • Make Money
  • Manage Money
  • Invest
  • Taxes
  • Insurance
  • Retirement
  • Banking
  • Home
  • Credit
  • Debt
  • About
  • Contact
  • Facebook LinkedIn Twitter

© 2023 Good Financial Cents®. All Rights Reserved. | Privacy Policy | Disclaimer

All written content on this site is for information purposes only. Opinions expressed herein are solely those of AWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

All third party trademarks, including logos and icons, referenced in this website, are the property of their respective owners. Unless otherwise indicated, the use of third party trademarks herein does not imply or indicate any relationship, sponsorship, or endorsement between Good Financial Cents® and the owners of those trademarks. Any reference in this website to third party trademarks is to identify the corresponding third party goods and/or services.