1. A married person who's spouse itemizes

2. a nonresident alien

3. person filing a return for a period of less than 12 months b/c of a change in annual accounting period

The Relationship

Abode

Age

Support

Must also satisfy the joint return tests and the citizenship or residency test for depend. exempt. purposes

A qualifying child must be under age 19 or under age 24 in the case of a student (enrolled full time atleast 5 months of the year)

cannot be self-supporting (provide more than 1/2 of her own support)

-Scholarships are not considered support

-relationship

-gross income

-support test

Also, - joint return & -nonresident alien

-Lineal Ascendants (parent, gparents)

-Collateral ascendants (uncles,aunts)

-Certain in-laws (son, daughter, father, mother, brother, sister-in-laws)

-Unrelated parties who are members of the same household for the entire year

Note: Persons other than relatives can qualify & not all relatives qualify (ex. cousin)

-A qual. relative's gross income must be less than the exemption amount ($3800).

-Gross incdome is the amnt tax law counts as taxable.

-W/ Scholarships, include taxable portion (amnt rec'd for room & board, exclude nontaxable portion (books & tuition)

* qual. child does not have gross inc. test

Over one-half of the support of the qual. rel. must be furnished by the person claiming the exemption

* different from qual child.

Form 2120 (multiple support declaration)- waives the exemption. 

- The person claiming should keep a copy of these for their records.

1. Multiple Support Agreement

2. Children of divorced or separtated parents

If now-unmarried parents live apart for the last six months of the year AND

-They would have been entitled to the dependecy exemption had they been married & filed jointly

-They have custody (either jointly or singly) of the child for more than 1/2 the year

The special rule grants the depend. exemptions(s) to the noncustodial parent if the divorce (or separate maintenance) decree so specifies or the custodial parent issues a waiver on a Form.

- The reason for filing is to claim a refund for tax withheld

-If the spouses filed separate returns, tax liabilty wouldn't exist for either 

-Neither Spouse is req'd to file a return

To be a dependant, an indivual must be a U.S. citizen, a U.S. resident, or a resident of Canada or Mexico for some part of the calender year in which the taxpayers tax year begins.

As of the last day of the year, except for when a spouse dies during the year (still claim married)

They can change from Separate to Joint.

They can not change from Joint to Separate.

1. If either spouse itemizes, the other must also

2. The earned income credit and the credit for child and dependant care expenses can not be claimed **

3. No deduction is allowed for interest paid on qualified education loans

4. Only $1,500 of excess capital losses can be claimed each year

**if divorce is finalized this year, both parties file a form 1040 using single filing status and either can claim the $4000 earned income credit 

In year of death, file joint return with spouse. For the next 2 years after that, the surviving spouse can claim this status and enjoy the joint return rate as long as the S.Spouse maintains a home for atleast one dependant child.

Head of Household:

requirements & exception

Unmarried individuals who maintain a household for one or more dependants may qualify to use these rates.

To Qualify:

1. the TP must pay more than 1/2 the cost of maintaining a household as his or her home.

2.The household must be the principal home of a dependent.

3. The dependent must live there for over half the year.

4. The depend. must be either a qual. child or relative, who meets the relationship test

Exception: if TP maintains a separate home for their parent(s), they can file HOH if atleast one parent qualifies as a dependant of the TP.

1. The TP does not file a joint return

2. The TP paid more than 1/2 the cost of maintaining his or her home for the tax year

3.The TP's spouse did not live there for the last 6 months of the year

4. The home was the principal residence of the TP's son, daughter, step kid's, foster or adopted kid for more than 1/2 the year and the child can be claimed as a dependant.

For every individual who has: 

Gross Income ≥ (exemption amnt + applicable std. deduction)

Ex. Single TP under 65: $9750 (personal exemp of 3800 + std deduct of 5950)

the gross income filing req. for someone who can be claimed as a dependant on another person's tax return Must file if they have ANY of the following:

1. Earned income only and Gross income that is more than the total standard deduction the individual is allowed

2. Unearned income only and gross income of more than $950 plus any addtional standard deduct. that the individual is allowed for the year.

3. Both Earned & Unearned income and gross income of more than the larger of $950 or the sum of earned income plus $300 (limited to the basic std deduct) plus addit. std deduct. 

Form 4868 (though it doesn't relieve you from failure to pay)

Form 1040X, it must be filed within three years of the filing date of the original return or within two years from the time the tax was paid, whichever is later.

1. TP who files a short period return

2. individuals whose taxable income exceeds the maximum ceiling amount in the tax table ($100,000 for from 1040).

3. an estate or trust