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Tax Dependents – Year End Planning Tax Breaks

joemas On October - 28 - 2010

Tax Dependents Tax Dependents – How To Know Who You Can Claim!

In order to reduce your taxes, you may claim a personal exemption. You are entitled to claim one exemption for your spouse too.

You can claim tax dependents for each child you support.

You are allowed to claim a tax dependents exemption only for qualifying children or relatives. Certain tests must be met. They are: a relationship of a dependent, support you provide, citizenship or residency, joint return, and dependent’s gross income.

You cannot qualify for a personal exemption if another taxpayer claims you as a dependent.

Claiming Exemption You And Your Spouse

When filing a separate tax return, you can claim an exemption for your spouse if she had no gross income, even if she is not filing a tax return. She may qualify for an exemption, even if she is a nonresident alien.

In order to claim the exemption she must not be claimed as a dependent by another taxpayer.

The amount you can deduct for each exemption is $3,650 (for 2009).

Exemption Phase-out

The amount for your personal exemption begins to decrease if your adjusted gross income is higher than: $125,100 for married individuals filing separately. For singles, the phase out begins at $166,800.

For heads of household, the exemption phase out starts at $208,500 and $250,200 for married persons filing jointly or qualifying widow/widowers. These limits apply for 2009.

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