TAX TIP OF THE MONTH Who Can Be Claimed As a Dependent?

Five qualifications must be met before an exemption for a dependent is allowed on your tax return:

1) The claimed dependent must have less than $2,800 of gross income for the calendar year ($2,900 in 2001);

2) Over half of the dependent’s total support must have been furnished by the taxpayer;

3) The dependent must have any of the following relationships to the taxpayer:
-Son, daughter, grandchild, stepchild or adopted child;
-Brother or sister or sibling by the half blood;
-Stepbrother or stepsister;
-Mother or father, ancestor of either;
-Stepfather or stepmother;
-Son or daughter of taxpayer’s brother/sister;
-Brother or sister of taxpayer’s father or mother;
-Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, sister-in-law;
-A person who lives in the taxpayer’s home and is a member of the taxpayer’s household.

4) The dependent must not have filed a joint return with his/her spouse;

5) The dependent must be a citizen, national or resident of the U.S., a resident of Canada or Mexico at some time during the tax year.

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