What does one understand by dependents?
It is important to make clear what one understands with the term dependents. The points below will make it crystal clear for you to understand,
- Dependent is an individual who was supported by you financially during this tax year.
- Dependent is also categorized based on your immediate relationship with that individual. For instance, you cannot claim your employee to be your dependent.
- A dependent can unload you from the heavy taxes for the year. Note: if claimed.
Various types of dependents
There can be various types of dependence that you can claim on your tax forms. Two very common of them have been discussed below,
Qualifying relatives
A few requirements need to be met or fulfilled by a qualifying relative for being a dependent. Some of those requirements are mentioned below,
- They must have the same nationality as yours. If not, they should be a resident from the enlisted places in your tax form.
- You should be providing about half or more than half of their financial needs in the specific tax year.
- They must not exceed the income set for a dependent in the course of a tax year.
Qualifying children
Requirements for qualifying child children are,
- They should have a relationship with you either by blood or adoption.
- They should be under the age limit of 19 or 24 if they are a college student.
- The child should at least be living with you for half a year.
What is number of dependents?
You are more often asked for the number of dependents in your tax forms. Various official forms will keep a check on the number of dependents to keep track of an individual being a law-abiding tax-paying citizen.
The number of dependents can be exactly summed up in the points mentioned below:
- The number of individuals who are directly depending on you for their expenses, especially financial.
- Most definitely, the number of dependents includes your other half and children.
- The number of dependents may also vary according to the form at hand if you are giving allowance to your parents and grandparents.
Claiming them as dependents is only possible if you, in any specific way, are providing for their livelihood.