IRS Dependent Rules 2024 – Complete guide to claim on tax return!

Claim dependents by meeting relationship and support criteria, ensuring gross income is below $5,050, and avoiding joint filing unless exceptional. Maximise tax benefits on your 2024 return with this understanding.

IRS Dependent Rules 2024

For IRS dependents, you must first meet the basic requirements of relationship and support. Additionally, the Dependent Taxpayer Test ensures the individual’s gross income doesn’t exceed $5,050, and the Joint Return Test verifies they aren’t filing a joint return except in rare situations. 

By understanding these additional tests alongside the core requirements, you can confidently and accurately claim dependents on your 2024 tax return and potentially maximise your tax benefits. 

• IRS Direct Deposit Dates 2024
• IRS Tax Refund Calendar 2024
• NS Heating Rebate 2024

Who qualifies to be Considered a Dependent?

There are two primary categories for claiming dependents: qualifying children and qualifying relatives.

Qualifying Children:

• Age: Your child must be younger than you (or your spouse if filing jointly) and either under 19 at the end of 2024 or a “student” under 24 at the end of 2024.
• Support: You must provide more than half of your child’s total support for the calendar year.
• Citizenship or Residency: Your child must be a U.S. citizen, resident alien, or a citizen or resident of Canada or Mexico.
• Filing Status: Your child cannot file a joint return for themselves.

Qualifying Relatives:

• Relationship: The individual must be your son, daughter, stepchild, foster child, parent, grandparent, sibling, step-sibling, niece, nephew, aunt, uncle, or first cousin (or their descendants). Adopted children are treated as natural children.
• Support: Similar to qualifying children, you must provide over half of the individual’s total support for the calendar year.
• Citizenship or Residency: The same citizenship or residency requirements apply as for qualifying children.
• Filing Status: The individual cannot file a joint return for themselves and cannot be your qualifying child (or the qualifying child of any other taxpayer).

Tests for Claiming Dependents

While establishing a qualifying relationship and providing over half of the individual’s support are essential steps, claiming dependents on your tax return in 2024 involves two additional tests you must consider:

Dependent Taxpayer Test:

• This test delves into the financial self-sufficiency of the individual you intend to claim as a dependent. To meet this test, the individual’s gross income for 2024 must not exceed $5,050. 
  • Gross income includes: Earned income (wages, salaries, tips), unearned income (interest, dividends, capital gains), and other taxable income.
  • Exceptions may exist: In specific situations, the $5,050 limit may not apply. For example, if the individual is blind or permanently and totally disabled, the income limit might not be a factor. 

Joint Return Test:

• This test focuses on the individual’s filing status. Generally, to be claimed as a dependent, the individual cannot file a joint return for themselves, with some exceptions:
  • Specific situations: The only exception to this rule is when the individual’s spouse files separately due to specific filing status limitations. These limitations might include being a nonresident alien or having lived apart for the entire year due to marital discord.
  • Independent filing: If the individual files a separate return, they cannot claim you as a dependent on their return.

Claim Dependents on Tax Return

Determine Eligibility:

• Qualifying Relationship: Verify if the person you wish to claim is a qualifying child or a qualifying relative as defined by the IRS
• Meet All Requirements: Ensure you meet all the tests, including relationship, support, citizenship/residency, dependency filing status, and income limitations.

Gather Necessary Documents:

• Social Security Number (SSN): You’ll need the SSN of the person you’re claiming as a dependent.
• Proof of Relationship: Documents like birth certificates, adoption decrees, or marriage certificates might be required for verification.
• Proof of Support: Documents like pay stubs, bank statements, or cancelled checks can be used to demonstrate you provided more than half of the individual’s support.
• Proof of Citizenship or Residency (if applicable): This may include passports, birth certificates, or green cards for individuals who aren’t U.S. citizens.

Choose the Right Tax Form:

• Form 1040 or 1040-SR: These are the standard individual tax return forms used for claiming dependents.
• Schedule 8812: This additional schedule is required specifically to calculate your Child Tax Credit and Other Dependents Credits.

Complete the Forms Accurately:

• Form 1040 or 1040-SR: Enter the dependent’s information, including their name, SSN, and relationship to you in the designated sections.
• Schedule 8812: Follow the instructions on the form to calculate your Child Tax Credit and any applicable dependent credits based on the information about your dependents.

File Your Return:

• Electronically: Filing electronically (e-filing) is recommended for speed and accuracy.
• Paper Mail: If you choose to mail your return, ensure you use certified mail with a return receipt for tracking purposes.