Who do I claim as a dependent?
Our furry friends depend on us just as much as we depend on them. Why wouldn’t we count them as dependents for tax purposes, and take the $2,000 per dependent tax credit?We take them to doggy daycare, spend money on toys and pay human-sized sums on their health and well being.
But, unfortunately IRS has some strict rules on who can be considered a dependent, and Fido and Whiskers are not on the list.
So who counts as a dependent? Here is a full breakdown:
1. A dependent can be
a. A Qualifying Child, or
b. A Qualifying Relative
A. Qualifying Child.
A child can qualify as dependent if all of the following criteria are met
· The child is related to you including son, daughter, stepchild, stepbrother, stepsister eligible foster child, brother, sister, half brother, half sister, , adopted child, and any children that they may have.
· The Child must be under age 19, or 24 if they are full time student. There is no age limit for permanently disabled children.
· The child must live with you for more than half of the year.
· The child needs more than half of their support from you.
· You must be the only tax payer that claims the qualifying child.
B. Qualifying Relative.
· Your relative must live with you all year, or must be on a list of “relatives who do not live with you”.
· Your relative must have less than $4,200 of gross income in 2019.
· The relative needs more than half of their support from you.
· You must be the only tax payer that claims the qualifying relative.
For a more in depth discussion please contact a Bright Line Tax representative today.