Claiming a child or family member as a dependent can often have significant tax benefits for a taxpayer. For most individual tax returns, determining who qualifies as a dependent of a taxpayer is a straightforward proposition.
However, the question can quickly get complicated in a number of situations tax pros see regularly.
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.
Q: Does food eaten outside the home count towards support?
A: Support includes all food you purchase for the child.
Q: If a child was born in December 2023, how should I answer the question: how many months did they live in the home; 12 months or one month?
A: 12 months. A child born during the year is considered to live with the taxpayer for 12 months.
Q: If a child earns enough to support themselves, but saves it all, does that mean that they did not provide more than half their support?
A: Yes, if all the money went into savings, then the child did not spend it on themselves.
Q: Can parents who never marry, and cannot agree who can claim the child, still apply the tiebreaker rule?
A: Yes, if they live together the AGI income tiebreaker rule would apply.
To learn more about determining qualifying dependents, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial at natptax.com/explore.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.