Support Test Taxpayer must have provided over 50% of total support, OR Two or more persons shared the support and together they provided more than 50% of the total support.
The dependent must be a member of the household, or closely related to BOTH contributors.
Those sharing support must mutually agree which will claim the exemption.
Form 2120 Multiple Support Declaration must be signed by all contributors and filed with their tax return.
Gross Income Test The dependent must have made less than the gross income requirement for the tax filing year.
The only exception to this rule is if the dependent is the taxpayer's child, under the age of 19 years at the end of the tax year, or is a full-time student during at least 5 months of the year and is under the age of 24 years old.
Gross Income Does Not Include: tax-exempt income income earned by a totally and permanently disabled person at a sheltered workshop operated by a tax exempt organization or government agency.
Gross Income Does Include: gross receipts from rental property income from Schedule C Citizenship Test The dependent must be a U.
S.
citizen, resident or national, or resident of Canada or Mexico.
After the finalization of an adoption, the citizenship test does not need to be met if the adopted child lived with the taxpayer and was a member of the household for the entire year.
Joint Return Test No exemption may be claimed for a dependent who files a joint return.
Exception: a joint return filed only to claim a refund of tax withheld when neither spouse is required to file and there is no tax liability.
Member of Household or Relationship Test The dependent must: live in the taxpayers home for the entire year, OR be related as a child, grandchild, great grandchild, adopted, step child, brother, sister, half- brother, half- sister, brother-in-law, sister-in-law, step brother or sister, mother or father-in-law, step mother or father, aunt, uncle, niece, nephew, son-in-law, or daughter-in-law Support Test for Children of Divorced or Separated Parents Special rules apply if: the parents are divorced or legally separated or lived apart for the last 6 months of the year one or both parents provide over 50% of the support, AND one or both parents had custody more than half of the year Trying to claim a dependent who does not meet the required tests could result in a delay of your income tax processing and refund, if you are owed money.