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My free tax. My free tax.com com 3. My free tax.com   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. My free tax.com Taxpayer identification numbers for aliens. My free tax.com Taxpayer identification numbers for adoptees. My free tax.com What's New Exemption amount. My free tax.com  The amount you can deduct for each exemption has increased. My free tax.com It was $3,800 for 2012. My free tax.com It is $3,900 for 2013. My free tax.com Exemption phaseout. My free tax.com  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. My free tax.com For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). My free tax.com See Phaseout of Exemptions , later. My free tax.com Introduction This chapter discusses the following topics. My free tax.com Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. My free tax.com Exemptions for dependents — You generally can take an exemption for each of your dependents. My free tax.com A dependent is your qualifying child or qualifying relative. My free tax.com If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. My free tax.com Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. My free tax.com Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. My free tax.com Deduction. My free tax.com   Exemptions reduce your taxable income. My free tax.com You can deduct $3,900 for each exemption you claim in 2013. My free tax.com But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. My free tax.com See Phaseout of Exemptions , later. My free tax.com How to claim exemptions. My free tax.com    How you claim an exemption on your tax return depends on which form you file. My free tax.com    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. My free tax.com    If you file Form 1040A, complete lines 6a through 6d. My free tax.com The total number of exemptions you can claim is the total in the box on line 6d. My free tax.com Also complete line 26. My free tax.com   If you file Form 1040, complete lines 6a through 6d. My free tax.com The total number of exemptions you can claim is the total in the box on line 6d. My free tax.com Also complete line 42. My free tax.com Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). My free tax.com While each is worth the same amount ($3,900 for 2013), different rules apply to each type. My free tax.com Personal Exemptions You are generally allowed one exemption for yourself. My free tax.com If you are married, you may be allowed one exemption for your spouse. My free tax.com These are called personal exemptions. My free tax.com Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. My free tax.com If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. My free tax.com Your Spouse's Exemption Your spouse is never considered your dependent. My free tax.com Joint return. My free tax.com   On a joint return you can claim one exemption for yourself and one for your spouse. My free tax.com Separate return. My free tax.com   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. My free tax.com This is true even if the other taxpayer does not actually claim your spouse as a dependent. My free tax.com You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. My free tax.com S. My free tax.com tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. My free tax.com Death of spouse. My free tax.com   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . My free tax.com If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . My free tax.com   If you remarried during the year, you cannot take an exemption for your deceased spouse. My free tax.com   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. My free tax.com If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. My free tax.com Divorced or separated spouse. My free tax.com   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. My free tax.com This rule applies even if you provided all of your former spouse's support. My free tax.com Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. My free tax.com You can claim an exemption for a dependent even if your dependent files a return. My free tax.com The term “dependent” means: A qualifying child, or A qualifying relative. My free tax.com The terms “ qualifying child ” and “ qualifying relative ” are defined later. My free tax.com You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. My free tax.com Dependent taxpayer test. My free tax.com Joint return test. My free tax.com Citizen or resident test. My free tax.com These three tests are explained in detail later. My free tax.com All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. My free tax.com Table 3-1. My free tax.com Overview of the Rules for Claiming an Exemption for a Dependent Caution. My free tax.com This table is only an overview of the rules. My free tax.com For details, see the rest of this chapter. My free tax.com You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. My free tax.com   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. My free tax.com   You cannot claim a person as a dependent unless that person is a U. My free tax.com S. My free tax.com citizen, U. My free tax.com S. My free tax.com resident alien, U. My free tax.com S. My free tax.com national, or a resident of Canada or Mexico. My free tax.com 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. My free tax.com   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. My free tax.com   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. My free tax.com   The child must have lived with you for more than half of the year. My free tax.com 2  The child must not have provided more than half of his or her own support for the year. My free tax.com   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). My free tax.com  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. My free tax.com See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. My free tax.com   The person cannot be your qualifying child or the qualifying child of any other taxpayer. My free tax.com   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). My free tax.com   The person's gross income for the year must be less than $3,900. My free tax.com 3  You must provide more than half of the person's total support for the year. My free tax.com 4  1There is an exception for certain adopted children. My free tax.com 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. My free tax.com 3There is an exception if the person is disabled and has income from a sheltered workshop. My free tax.com 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. My free tax.com Dependent not allowed a personal exemption. My free tax.com If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. My free tax.com This is true even if you do not claim the dependent's exemption on your return. My free tax.com It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. My free tax.com Housekeepers, maids, or servants. My free tax.com   If these people work for you, you cannot claim exemptions for them. My free tax.com Child tax credit. My free tax.com   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. My free tax.com For more information, see chapter 34. My free tax.com Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. My free tax.com Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. My free tax.com If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. My free tax.com Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. My free tax.com Exception. My free tax.com   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. My free tax.com Example 1—child files joint return. My free tax.com You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. My free tax.com He earned $25,000 for the year. My free tax.com The couple files a joint return. My free tax.com You cannot take an exemption for your daughter. My free tax.com Example 2—child files joint return only as claim for refund of withheld tax. My free tax.com Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. My free tax.com Neither is required to file a tax return. My free tax.com They do not have a child. My free tax.com Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. My free tax.com The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. My free tax.com You can claim exemptions for each of them if all the other tests to do so are met. My free tax.com Example 3—child files joint return to claim American opportunity credit. My free tax.com The facts are the same as in Example 2 except no taxes were taken out of your son's pay. My free tax.com He and his wife are not required to file a tax return. My free tax.com However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. My free tax.com Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. My free tax.com The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. My free tax.com Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. My free tax.com S. My free tax.com citizen, U. My free tax.com S. My free tax.com resident alien, U. My free tax.com S. My free tax.com national, or a resident of Canada or Mexico. My free tax.com However, there is an exception for certain adopted children, as explained next. My free tax.com Exception for adopted child. My free tax.com   If you are a U. My free tax.com S. My free tax.com citizen or U. My free tax.com S. My free tax.com national who has legally adopted a child who is not a U. My free tax.com S. My free tax.com citizen, U. My free tax.com S. My free tax.com resident alien, or U. My free tax.com S. My free tax.com national, this test is met if the child lived with you as a member of your household all year. My free tax.com This exception also applies if the child was lawfully placed with you for legal adoption. My free tax.com Child's place of residence. My free tax.com   Children usually are citizens or residents of the country of their parents. My free tax.com   If you were a U. My free tax.com S. My free tax.com citizen when your child was born, the child may be a U. My free tax.com S. My free tax.com citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. My free tax.com Foreign students' place of residence. My free tax.com   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. My free tax.com S. My free tax.com residents and do not meet this test. My free tax.com You cannot claim an exemption for them. My free tax.com However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. My free tax.com See Expenses Paid for Student Living With You in chapter 24. My free tax.com U. My free tax.com S. My free tax.com national. My free tax.com   A U. My free tax.com S. My free tax.com national is an individual who, although not a U. My free tax.com S. My free tax.com citizen, owes his or her allegiance to the United States. My free tax.com U. My free tax.com S. My free tax.com nationals include American Samoans and Northern Mariana Islanders who chose to become U. My free tax.com S. My free tax.com nationals instead of U. My free tax.com S. My free tax.com citizens. My free tax.com Qualifying Child Five tests must be met for a child to be your qualifying child. My free tax.com The five tests are: Relationship, Age, Residency, Support, and Joint return. My free tax.com These tests are explained next. My free tax.com If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. My free tax.com See Special Rule for Qualifying Child of More Than One Person, later. My free tax.com Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. My free tax.com Adopted child. My free tax.com   An adopted child is always treated as your own child. My free tax.com The term “adopted child” includes a child who was lawfully placed with you for legal adoption. My free tax.com Foster child. My free tax.com   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. My free tax.com Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. My free tax.com Example. My free tax.com Your son turned 19 on December 10. My free tax.com Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. My free tax.com Child must be younger than you or spouse. My free tax.com   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. My free tax.com However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. My free tax.com Example 1—child not younger than you or spouse. My free tax.com Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. My free tax.com He is not disabled. My free tax.com Both you and your spouse are 21 years old, and you file a joint return. My free tax.com Your brother is not your qualifying child because he is not younger than you or your spouse. My free tax.com Example 2—child younger than your spouse but not younger than you. My free tax.com The facts are the same as in Example 1 except your spouse is 25 years old. My free tax.com Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. My free tax.com Student defined. My free tax.com   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. My free tax.com The 5 calendar months do not have to be consecutive. My free tax.com Full-time student. My free tax.com   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. My free tax.com School defined. My free tax.com   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. My free tax.com However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. My free tax.com Vocational high school students. My free tax.com   Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. My free tax.com Permanently and totally disabled. My free tax.com   Your child is permanently and totally disabled if both of the following apply. My free tax.com He or she cannot engage in any substantial gainful activity because of a physical or mental condition. My free tax.com A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. My free tax.com Residency Test To meet this test, your child must have lived with you for more than half the year. My free tax.com There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. My free tax.com Temporary absences. My free tax.com   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. My free tax.com Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. My free tax.com Death or birth of child. My free tax.com   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. My free tax.com Child born alive. My free tax.com   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. My free tax.com State or local law must treat the child as having been born alive. My free tax.com There must be proof of a live birth shown by an official document, such as a birth certificate. My free tax.com The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. My free tax.com Stillborn child. My free tax.com   You cannot claim an exemption for a stillborn child. My free tax.com Kidnapped child. My free tax.com   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. My free tax.com See Publication 501 for details. My free tax.com Children of divorced or separated parents (or parents who live apart). My free tax.com   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. My free tax.com However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. My free tax.com The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. My free tax.com The child received over half of his or her support for the year from the parents. My free tax.com The child is in the custody of one or both parents for more than half of the year. My free tax.com Either of the following statements is true. My free tax.com The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. My free tax.com (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. My free tax.com If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. My free tax.com ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. My free tax.com Custodial parent and noncustodial parent. My free tax.com   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. My free tax.com The other parent is the noncustodial parent. My free tax.com   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. My free tax.com   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). My free tax.com Equal number of nights. My free tax.com   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). My free tax.com December 31. My free tax.com   The night of December 31 is treated as part of the year in which it begins. My free tax.com For example, December 31, 2013, is treated as part of 2013. My free tax.com Emancipated child. My free tax.com   If a child is emancipated under state law, the child is treated as not living with either parent. My free tax.com See Examples 5 and 6. My free tax.com Absences. My free tax.com   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. My free tax.com But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. My free tax.com Parent works at night. My free tax.com   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. My free tax.com On a school day, the child is treated as living at the primary residence registered with the school. My free tax.com Example 1—child lived with one parent for a greater number of nights. My free tax.com You and your child’s other parent are divorced. My free tax.com In 2013, your child lived with you 210 nights and with the other parent 155 nights. My free tax.com You are the custodial parent. My free tax.com Example 2—child is away at camp. My free tax.com In 2013, your daughter lives with each parent for alternate weeks. My free tax.com In the summer, she spends 6 weeks at summer camp. My free tax.com During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. My free tax.com Example 3—child lived same number of nights with each parent. My free tax.com Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. My free tax.com Your AGI is $40,000. My free tax.com Your ex-spouse's AGI is $25,000. My free tax.com You are treated as your son's custodial parent because you have the higher AGI. My free tax.com Example 4—child is at parent’s home but with other parent. My free tax.com Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. My free tax.com You become ill and are hospitalized. My free tax.com The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. My free tax.com Your son is treated as living with you during this 10-day period because he was living in your home. My free tax.com Example 5—child emancipated in May. My free tax.com When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. My free tax.com As a result, he is not considered in the custody of his parents for more than half of the year. My free tax.com The special rule for children of divorced or separated parents does not apply. My free tax.com Example 6—child emancipated in August. My free tax.com Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. My free tax.com She turns 18 and is emancipated under state law on August 1, 2013. My free tax.com Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. My free tax.com You are the custodial parent. My free tax.com Written declaration. My free tax.com    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. My free tax.com The noncustodial parent must attach a copy of the form or statement to his or her tax return. My free tax.com   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. My free tax.com Post-1984 and pre-2009 divorce decree or separation agreement. My free tax.com   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. My free tax.com The decree or agreement must state all three of the following. My free tax.com The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. My free tax.com The custodial parent will not claim the child as a dependent for the year. My free tax.com The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. My free tax.com   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. My free tax.com The cover page (write the other parent's social security number on this page). My free tax.com The pages that include all of the information identified in items (1) through (3) above. My free tax.com The signature page with the other parent's signature and the date of the agreement. My free tax.com Post-2008 divorce decree or separation agreement. My free tax.com   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. My free tax.com The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. My free tax.com The form or statement must release the custodial parent's claim to the child without any conditions. My free tax.com For example, the release must not depend on the noncustodial parent paying support. My free tax.com    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. My free tax.com Revocation of release of claim to an exemption. My free tax.com   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). My free tax.com For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. My free tax.com The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. My free tax.com Remarried parent. My free tax.com   If you remarry, the support provided by your new spouse is treated as provided by you. My free tax.com Parents who never married. My free tax.com   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. My free tax.com Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. My free tax.com This test is different from the support test to be a qualifying relative, which is described later. My free tax.com However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. My free tax.com If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. My free tax.com Worksheet 3-1. My free tax.com Worksheet for Determining Support Funds Belonging to the Person You Supported       1. My free tax.com Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. My free tax.com Do not include funds provided by the state; include those amounts on line 23 instead 1. My free tax.com     2. My free tax.com Enter the amount on line 1 that was used for the person's support 2. My free tax.com     3. My free tax.com Enter the amount on line 1 that was used for other purposes 3. My free tax.com     4. My free tax.com Enter the total amount in the person's savings and other accounts at the end of the year 4. My free tax.com     5. My free tax.com Add lines 2 through 4. My free tax.com (This amount should equal line 1. My free tax.com ) 5. My free tax.com     Expenses for Entire Household (where the person you supported lived)       6. My free tax.com Lodging (complete line 6a or 6b):         a. My free tax.com Enter the total rent paid 6a. My free tax.com       b. My free tax.com Enter the fair rental value of the home. My free tax.com If the person you supported owned the home,  also include this amount in line 21 6b. My free tax.com     7. My free tax.com Enter the total food expenses 7. My free tax.com     8. My free tax.com Enter the total amount of utilities (heat, light, water, etc. My free tax.com not included in line 6a or 6b) 8. My free tax.com     9. My free tax.com Enter the total amount of repairs (not included in line 6a or 6b) 9. My free tax.com     10. My free tax.com Enter the total of other expenses. My free tax.com Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. My free tax.com     11. My free tax.com Add lines 6a through 10. My free tax.com These are the total household expenses 11. My free tax.com     12. My free tax.com Enter total number of persons who lived in the household 12. My free tax.com     Expenses for the Person You Supported       13. My free tax.com Divide line 11 by line 12. My free tax.com This is the person's share of the household expenses 13. My free tax.com     14. My free tax.com Enter the person's total clothing expenses 14. My free tax.com     15. My free tax.com Enter the person's total education expenses 15. My free tax.com     16. My free tax.com Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. My free tax.com     17. My free tax.com Enter the person's total travel and recreation expenses 17. My free tax.com     18. My free tax.com Enter the total of the person's other expenses 18. My free tax.com     19. My free tax.com Add lines 13 through 18. My free tax.com This is the total cost of the person's support for the year 19. My free tax.com     Did the Person Provide More Than Half of His or Her Own Support?       20. My free tax.com Multiply line 19 by 50% (. My free tax.com 50) 20. My free tax.com     21. My free tax.com Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. My free tax.com This is the amount the person provided for his or her own support 21. My free tax.com     22. My free tax.com Is line 21 more than line 20?   No. My free tax.com You meet the support test for this person to be your qualifying child. My free tax.com If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. My free tax.com Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. My free tax.com    Yes. My free tax.com You do not meet the support test for this person to be either your qualifying child or your qualifying relative. My free tax.com Stop here. My free tax.com        Did You Provide More Than Half?       23. My free tax.com Enter the amount others provided for the person's support. My free tax.com Include amounts provided by state, local, and other welfare societies or agencies. My free tax.com Do not include any amounts included on line 1 23. My free tax.com     24. My free tax.com Add lines 21 and 23 24. My free tax.com     25. My free tax.com Subtract line 24 from line 19. My free tax.com This is the amount you provided for the person's support 25. My free tax.com     26. My free tax.com Is line 25 more than line 20?   Yes. My free tax.com You meet the support test for this person to be your qualifying relative. My free tax.com    No. My free tax.com You do not meet the support test for this person to be your qualifying relative. My free tax.com You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. My free tax.com See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. My free tax.com   Example. My free tax.com You provided $4,000 toward your 16-year-old son's support for the year. My free tax.com He has a part-time job and provided $6,000 to his own support. My free tax.com He provided more than half of his own support for the year. My free tax.com He is not your qualifying child. My free tax.com Foster care payments and expenses. My free tax.com   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. My free tax.com Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. My free tax.com   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. My free tax.com For more information about the deduction for charitable contributions, see chapter 24. My free tax.com If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. My free tax.com   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. My free tax.com Example 1. My free tax.com Lauren, a foster child, lived with Mr. My free tax.com and Mrs. My free tax.com Smith for the last 3 months of the year. My free tax.com The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). My free tax.com They did not care for her as a trade or business or to benefit the agency that placed her in their home. My free tax.com The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. My free tax.com Example 2. My free tax.com You provided $3,000 toward your 10-year-old foster child's support for the year. My free tax.com The state government provided $4,000, which is considered support provided by the state, not by the child. My free tax.com See Support provided by the state (welfare, food stamps, housing, etc. My free tax.com ) , later. My free tax.com Your foster child did not provide more than half of her own support for the year. My free tax.com Scholarships. My free tax.com   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. My free tax.com Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. My free tax.com Exception. My free tax.com   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. My free tax.com Example 1—child files joint return. My free tax.com You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. My free tax.com He earned $25,000 for the year. My free tax.com The couple files a joint return. My free tax.com Because your daughter and her husband file a joint return, she is not your qualifying child. My free tax.com Example 2—child files joint return only as a claim for refund of withheld tax. My free tax.com Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. My free tax.com Neither is required to file a tax return. My free tax.com They do not have a child. My free tax.com Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. My free tax.com The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. My free tax.com Example 3—child files joint return to claim American opportunity credit. My free tax.com The facts are the same as in Example 2 except no taxes were taken out of your son's pay. My free tax.com He and his wife were not required to file a tax return. My free tax.com However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. My free tax.com Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. My free tax.com The exception to the joint return test does not apply, so your son is not your qualifying child. My free tax.com Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. My free tax.com This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. My free tax.com If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. My free tax.com Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. My free tax.com Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). My free tax.com The exemption for the child. My free tax.com The child tax credit. My free tax.com Head of household filing status. My free tax.com The credit for child and dependent care expenses. My free tax.com The exclusion from income for dependent care benefits. My free tax.com The earned income credit. My free tax.com The other person cannot take any of these benefits based on this qualifying child. My free tax.com In other words, you and the other person cannot agree to divide these benefits between you. My free tax.com The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. My free tax.com Tiebreaker rules. My free tax.com   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. My free tax.com If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. My free tax.com If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. My free tax.com If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. My free tax.com If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. My free tax.com If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. My free tax.com If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. My free tax.com If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. My free tax.com See Example 6 . My free tax.com   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. My free tax.com Example 1—child lived with parent and grandparent. My free tax.com You and your 3-year-old daughter Jane lived with your mother all year. My free tax.com You are 25 years old, unmarried, and your AGI is $9,000. My free tax.com Your mother's AGI is $15,000. My free tax.com Jane's father did not live with you or your daughter. My free tax.com You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. My free tax.com Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. My free tax.com However, only one of you can claim her. My free tax.com Jane is not a qualifying child of anyone else, including her father. My free tax.com You agree to let your mother claim Jane. My free tax.com This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). My free tax.com Example 2—parent has higher AGI than grandparent. My free tax.com The facts are the same as in Example 1 except your AGI is $18,000. My free tax.com Because your mother's AGI is not higher than yours, she cannot claim Jane. My free tax.com Only you can claim Jane. My free tax.com Example 3—two persons claim same child. My free tax.com The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. My free tax.com In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. My free tax.com The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. My free tax.com Example 4—qualifying children split between two persons. My free tax.com The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. My free tax.com Only one of you can claim each child. My free tax.com However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. My free tax.com For example, if you claim one child, your mother can claim the other two. My free tax.com Example 5—taxpayer who is a qualifying child. My free tax.com The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. My free tax.com This means you are your mother's qualifying child. My free tax.com If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. My free tax.com Example 6—child lived with both parents and grandparent. My free tax.com The facts are the same as in Example 1 except you are married to your daughter's father. My free tax.com The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. My free tax.com If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. My free tax.com Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. My free tax.com Example 7—separated parents. My free tax.com You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. My free tax.com In August and September, your son lived with you. My free tax.com For the rest of the year, your son lived with your husband, the boy's father. My free tax.com Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. My free tax.com At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents (or parents who live apart) does not apply. My free tax.com You and your husband will file separate returns. My free tax.com Your husband agrees to let you treat your son as a qualifying child. My free tax.com This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). My free tax.com However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. My free tax.com As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. My free tax.com Example 8—separated parents claim same child. My free tax.com The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. My free tax.com In this case, only your husband will be allowed to treat your son as a qualifying child. My free tax.com This is because, during 2013, the boy lived with him longer than with you. My free tax.com If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. My free tax.com If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. My free tax.com In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. My free tax.com As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. My free tax.com Example 9—unmarried parents. My free tax.com You, your 5-year-old son, and your son's father lived together all year. My free tax.com You and your son's father are not married. My free tax.com Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. My free tax.com Your AGI is $12,000 and your son's father's AGI is $14,000. My free tax.com Your son's father agrees to let you claim the child as a qualifying child. My free tax.com This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). My free tax.com Example 10—unmarried parents claim same child. My free tax.com The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. My free tax.com In this case, only your son's father will be allowed to treat your son as a qualifying child. My free tax.com This is because his AGI, $14,000, is more than your AGI, $12,000. My free tax.com If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. My free tax.com If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. My free tax.com Example 11—child did not live with a parent. My free tax.com You and your 7-year-old niece, your sister's child, lived with your mother all year. My free tax.com You are 25 years old, and your AGI is $9,300. My free tax.com Your mother's AGI is $15,000. My free tax.com Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. My free tax.com Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. My free tax.com However, only your mother can treat her as a qualifying child. My free tax.com This is because your mother's AGI, $15,000, is more than your AGI, $9,300. My free tax.com Applying this special rule to divorced or separated parents (or parents who live apart). My free tax.com   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. My free tax.com However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. My free tax.com If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. My free tax.com Example 1. My free tax.com You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. My free tax.com Your AGI is $10,000. My free tax.com Your mother's AGI is $25,000. My free tax.com Your son's father did not live with you or your son. My free tax.com Under the rules explained earlier for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for him. My free tax.com Because of this, you cannot claim an exemption or the child tax credit for your son. My free tax.com However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. My free tax.com You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. My free tax.com But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. My free tax.com (Note: The support test does not apply for the earned income credit. My free tax.com ) However, you agree to let your mother claim your son. My free tax.com This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. My free tax.com (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. My free tax.com ) Example 2. My free tax.com The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. My free tax.com Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. My free tax.com Example 3. My free tax.com The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. My free tax.com Your mother also claims him as a qualifying child for head of household filing status. My free tax.com You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. My free tax.com The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. My free tax.com Qualifying Relative Four tests must be met for a person to be your qualifying relative. My free tax.com The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. My free tax.com Age. My free tax.com   Unlike a qualifying child, a qualifying relative can be any age. My free tax.com There is no age test for a qualifying relative. My free tax.com Kidnapped child. My free tax.com   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. My free tax.com See Publication 501 for details. My free tax.com Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. My free tax.com Example 1. My free tax.com Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. My free tax.com She is not your qualifying relative. My free tax.com Example 2. My free tax.com Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. My free tax.com He is not your qualifying relative. My free tax.com Example 3. My free tax.com Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. My free tax.com He may be your qualifying relative if the gross income test and the support test are met. My free tax.com Example 4. My free tax.com Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. My free tax.com He is not your qualifying child because he does not meet the residency test. My free tax.com He may be your qualifying relative if the gross income test and the support test are met. My free tax.com Child of person not required to file a return. My free tax.com   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. My free tax.com Example 1—return not required. My free tax.com You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. My free tax.com Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. My free tax.com Both your friend and her child are your qualifying relatives if the support test is met. My free tax.com Example 2—return filed to claim refund. My free tax.com The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. My free tax.com She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. My free tax.com Both your friend and her child are your qualifying relatives if the support test is met. My free tax.com Example 3—earned income credit claimed. My free tax.com The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. My free tax.com Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. My free tax.com Child in Canada or Mexico. My free tax.com   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. My free tax.com If the child does not live with you, the child does not meet the residency test to be your qualifying child. My free tax.com However, the child may still be your qualifying relative. My free tax.com If the persons the child does live with are not U. My free tax.com S. My free tax.com citizens and have no U. My free tax.com S. My free tax.com gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. My free tax.com If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. My free tax.com   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. My free tax.com S. My free tax.com citizen, U. My free tax.com S. My free tax.com resident alien, or U. My free tax.com S. My free tax.com national. My free tax.com There is an exception for certain adopted children who lived with you all year. My free tax.com See Citizen or Resident Test , earlier. My free tax.com Example. My free tax.com You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. My free tax.com You are single and live in the United States. My free tax.com Your mother is not a U. My free tax.com S. My free tax.com citizen and has no U. My free tax.com S. My free tax.com income, so she is not a “taxpayer. My free tax.com ” Your children are not your qualifying children because they do not meet the residency test. My free tax.com But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. My free tax.com You may also be able to claim your mother as a dependent if the gross income and support tests are met. My free tax.com Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . My free tax.com If at any time during the year the person was your spouse, that person cannot be your qualifying relative. My free tax.com However, see Personal Exemptions , earlier. My free tax.com Relatives who do not have to live with you. My free tax.com   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. My free tax.com Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). My free tax.com (A legally adopted child is considered your child. My free tax.com ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. My free tax.com Your father, mother, grandparent, or other direct ancestor, but not foster parent. My free tax.com Your stepfather or stepmother. My free tax.com A son or daughter of your brother or sister. My free tax.com A son or daughter of your half brother or half sister. My free tax.com A brother or sister of your father or mother. My free tax.com Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. My free tax.com Any of these relationships that were established by marriage are not ended by death or divorce. My free tax.com Example. My free tax.com You and your wife began supporting your wife's father, a widower, in 2006. My free tax.com Your wife died in 2012. My free tax.com Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. My free tax.com You can claim him as a dependent if all other tests are met, including the gross income test and support test. My free tax.com Foster child. My free tax.com   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. My free tax.com Joint return. My free tax.com   If you file a joint return, the person can be related to either you or your spouse. My free tax.com Also, the person does not need to be related to the spouse who provides support. My free tax.com   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. My free tax.com However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. My free tax.com Temporary absences. My free tax.com   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. My free tax.com   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. My free tax.com Death or birth. My free tax.com   A person who died during the year, but lived with you as a member of your household until death, will meet this test. My free tax.com The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. My free tax.com The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. My free tax.com   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. My free tax.com Example. My free tax.com Your dependent mother died on January 15. My free tax.com She met the tests to be your qualifying relative. My free tax.com The other tests to claim an exemption for a dependent were also met. My free tax.com You can claim an exemption for her on your return. My free tax.com Local law violated. My free tax.com   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. My free tax.com Example. My free tax.com Your girlfriend lived with you as a member of your household all year. My free tax.com However, your relationship with her violated the laws of the state where you live, because she was married to someone else. My free tax.com Therefore, she does not meet this test and you cannot claim her as a dependent. My free tax.com Adopted child. My free tax.com   An adopted child is always treated as your own child. My free tax.com The term “adopted child” includes a child who was lawfully placed with you for legal adoption. My free tax.com Cousin. My free tax.com   Your cousin meets this test only if he or she lives with you all year as a member of your household. My free tax.com A cousin is a descendant of a brother or sister of your father or mother. My free tax.com Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. My free tax.com Gross income defined. My free tax.com   Gross income is all income in the form of money, property, and services that is not exempt from tax. My free tax.com   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. My free tax.com   Gross receipts from rental property are gross income. My free tax.com Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. My free tax.com   Gross income includes a partner's share of the gross (not a share of the net) partnership income. My free tax.com    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. My free tax.com Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. My free tax.com For more information about scholarships, see chapter 12. My free tax.com   Tax-exempt income, such as certain social security benefits, is not included in gross income. My free tax.com Disabled dependent working at sheltered workshop. My free tax.com   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. My free tax.com The availability of medical care at the workshop must be the main reason for the individual's presence there. My free tax.com Also, the income must come solely from activities at the workshop that are incident to this medical care. My free tax.com   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. My free tax.com S. My free tax.com possession, a political subdivision of a state or possession, the United States, or the District of Columbia. My free tax.com “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. My free tax.com Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. My free tax.com However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. My free tax.com How to determine if support test is met. My free tax.com   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. My free tax.com This includes support the person provided from his or her own funds. My free tax.com   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. My free tax.com Person's own funds not used for support. My free tax.com   A person's own funds are not support unless they are actually spent for support. My free tax.com Example. My free tax.com Your mother received $2,400 in social security benefits and $300 in interest. My free tax.com She paid $2,000 for lodging and $400 for recreation. My free tax.com She put $300 in a savings account. My free tax.com Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. My free tax.com If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. My free tax.com Child's wages used for own support. My free tax.com   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. My free tax.com Year support is provided. My free tax.com   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. My free tax.com   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. My free tax.com Armed Forces dependency allotments. My free tax.com   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. My free tax.com If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. My free tax.com Example. My free tax.com You are in the Armed Forces. My free tax.com You authorize an allotment for your widowed mother that she uses to support herself and her sister. My free tax.com If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. My free tax.com Tax-exempt military quarters allowances. My free tax.com   These allowances are treated the same way as dependency allotments in figuring support. My free tax.com The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. My free tax.com Tax-exempt income. My free tax.com   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. My free tax.com Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. My free tax.com Example 1. My free tax.com You provide $4,000 toward your mother's support during the year. My free tax.com She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. My free tax.com She uses all these for her support. My free tax.com You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). My free tax.com Example 2. My free tax.com Your niece takes out a student loan of $2,500 a

Topic 515 - Casualty, Disaster, and Theft Losses (Including Federally Declared Disaster Areas)

Generally, you may deduct casualty and theft losses relating to your home, household items and vehicles on your federal income tax return. You may not deduct casualty and theft losses covered by insurance unless you file a timely claim for reimbursement, and you reduce the loss by the amount of any reimbursement or expected reimbursement.

A casualty loss can result from the damage, destruction or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption. A casualty does not include normal wear and tear or progressive deterioration.

A theft is the taking and removing of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and it must have been done with criminal intent.

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of:

  • The adjusted basis of your property, or
  • The decrease in fair market value of your property as a result of the casualty

The amount of your theft loss is generally the adjusted basis of your property because the fair market value of your property immediately after the theft is considered to be zero.

If your property is business or income-producing property, such as rental property, and is completely destroyed, then the amount of your loss is your adjusted basis.

The loss, regardless of whether it is a casualty or theft loss, must be reduced by any salvage value and by any insurance or other reimbursement you receive or expect to receive. The adjusted basis of your property is usually your cost, increased or decreased by certain events such as improvements or depreciation. For more information about the basis of property, refer to Topic 703, Publication 547, Casualties, Disasters, and Thefts, and Publication 551, Basis of Assets. You may determine the decrease in fair market value by appraisal, or if certain conditions are met, by the cost of repairing the property. For more information, refer to Publication 547.

Individuals are required to claim their casualty and theft losses as an itemized deduction on Form 1040, Schedule A (PDF) (or Form 1040NR, Schedule A (PDF), if you are a nonresident alien). For property held by you for personal use, once you have subtracted any salvage value and any insurance or other reimbursement, you must subtract $100 from each casualty or theft event that occurred during the year. Then add up all those amounts and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.

Casualty and theft losses are reported on Form 4684 (PDF), Casualties and Thefts. Section A is used for personal-use property, and Section B is used for business or income-producing property. If personal-use property was damaged, destroyed or stolen, you may wish to refer to Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property). For losses involving business-use property, refer to Publication 584-B (PDF), Business Casualty, Disaster, and Theft Loss Workbook.

Casualty losses are generally deductible in the year the casualty occurred. However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to treat the loss as having occurred in the year immediately preceding the tax year in which the disaster happened, and you can deduct the loss on your return or amended return for that preceding tax year. Review Disaster Assistance and Emergency Relief for Individuals and Businesses on IRS.gov, for information regarding timeframes and additional information to your specific qualifying event.

Theft losses are generally deductible in the year you discover the property was stolen unless you have a reasonable prospect of recovery through a claim for reimbursement. In that case, no deduction is available until the taxable year in which it can be determined with reasonable certainty whether or not such reimbursement will be received.

Special rules may apply to theft losses from Ponzi-type investment schemes. For more information, see the Form 4684 (PDF) and the Form 4684 Instructions (PDF), Casualties and Thefts. Additionally, review Help for Victims of Ponzi Investment Schemes on IRS.gov.

If your loss deduction is more than your income, you may have a net operating loss. You do not have to be in business to have a net operating loss from a casualty. For more information, refer to Publication 536, Net Operating Losses for Individuals, Estates, and Trusts.

Page Last Reviewed or Updated: December 12, 2013

The My Free Tax.com

My free tax. My free tax.com com 4. My free tax.com   Deductions Table of Contents Standard DeductionStandard Deduction for Dependents Itemized DeductionsMedical and Dental Expenses Most taxpayers have a choice of taking a standard deduction or itemizing their deductions. My free tax.com You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. My free tax.com If you have a choice, you should use the method that gives you the lower tax. My free tax.com Standard Deduction The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. My free tax.com Generally, the standard deduction amounts are adjusted each year for inflation. My free tax.com In most cases, you can use Worksheet 4-1 to figure your standard deduction amount. My free tax.com Persons not eligible for the standard deduction. My free tax.com   Your standard deduction is zero and you should itemize any deductions you have if: You are married and filing a separate return, and your spouse itemizes deductions, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. My free tax.com You are considered a dual-status alien if you were both a nonresident alien and a resident alien during the year. My free tax.com   If you are a nonresident alien who is married to a U. My free tax.com S. My free tax.com citizen or resident alien at the end of the year, you can choose to be treated as a U. My free tax.com S. My free tax.com resident. My free tax.com See Publication 519, U. My free tax.com S. My free tax.com Tax Guide for Aliens. My free tax.com If you make this choice, you can take the standard deduction. My free tax.com Decedent's final return. My free tax.com   The amount of the standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. My free tax.com However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. My free tax.com Higher standard deduction for age (65 or older). My free tax.com   If you do not itemize deductions, you are entitled to a higher standard deduction if you are age 65 or older at the end of the year. My free tax.com You are considered age 65 on the day before your 65th birthday. My free tax.com Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. My free tax.com Higher standard deduction for blindness. My free tax.com   If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. My free tax.com You qualify for this benefit if you are totally or partly blind. My free tax.com Not totally blind. My free tax.com   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is not more than 20 degrees. My free tax.com   If your eye condition will never improve beyond these limits, the statement should include this fact. My free tax.com You must keep the statement in your records. My free tax.com   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. My free tax.com Spouse 65 or older or blind. My free tax.com   You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and an exemption for your spouse could not be claimed by another taxpayer. My free tax.com    You cannot claim the higher standard deduction for an individual other than yourself and your spouse. My free tax.com Example. My free tax.com This example illustrates how to determine your standard deduction using Worksheet 4-1. My free tax.com Bill and Lisa are filing a joint return for 2013. My free tax.com Both are over age 65. My free tax.com Neither is blind, and neither can be claimed as a dependent. My free tax.com They do not itemize deductions, so they use Worksheet 4-1. My free tax.com Because they are married filing jointly, they enter $12,200 on line 1. My free tax.com They check the “No” box on line 2, so they also enter $12,200 on line 4. My free tax.com Because they are both over age 65, they enter $2,400 ($1,200 × 2) on line 5. My free tax.com They enter $14,600 ($12,200 + $2,400) on line 6, so their standard deduction is $14,600. My free tax.com Standard Deduction for Dependents The standard deduction for an individual for whom an exemption can be claimed on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). My free tax.com However, the standard deduction may be higher if the individual is 65 or older or blind. My free tax.com If an exemption for you (or your spouse if you are filing jointly) can be claimed on someone else's return, use Worksheet 4-1, if applicable, to determine your standard deduction. My free tax.com Worksheet 4-1. My free tax.com 2013 Standard Deduction Worksheet Caution. My free tax.com If you are married filing separately and your spouse itemizes deductions, or if you are a dual-status alien, do not complete this worksheet. My free tax.com If you were born before January 2, 1949, and/or blind, check the correct number of boxes below. My free tax.com Put the total number of boxes checked in box c and go to line 1. My free tax.com a. My free tax.com You   Born before  January 2, 1949     Blind b. My free tax.com Your spouse, if claiming  spouse's exemption   Born before January 2, 1949     Blind c. My free tax.com Total boxes checked             1. My free tax.com Enter the amount shown below for your filing status. My free tax.com               Single or married filing separately — $6,100 Married filing jointly or Qualifying widow(er) — $12,200 Head of household — $8,950   1. My free tax.com           2. My free tax.com Can you (or your spouse if filing jointly) be claimed as a dependent on someone else's return?  No. My free tax.com Skip line 3; enter the amount from line 1 on line 4. My free tax.com   Yes. My free tax.com Go to line 3. My free tax.com         3. My free tax.com Is your earned income* more than $650?               Yes. My free tax.com Add $350 to your earned income. My free tax.com Enter the total   3. My free tax.com         No. My free tax.com Enter $1,000 4. My free tax.com Enter the smaller of line 1 or line 3 4. My free tax.com   5. My free tax.com If born before January 2, 1949, or blind, multiply the number in box c by $1,200 ($1,500 if single or head of household). My free tax.com Enter the result here. My free tax.com Otherwise, enter -0- 5. My free tax.com   6. My free tax.com Add lines 4 and 5. My free tax.com This is your standard deduction for 2013. My free tax.com 6. My free tax.com   * Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. My free tax.com It also includes any amount received as a scholarship that you must include in your income. My free tax.com Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 27 (or the amount you reported on Form 1040A, line 7). My free tax.com Itemized Deductions Some individuals should itemize their deductions because it will save them money. My free tax.com Others should itemize because they do not qualify for the standard deduction. My free tax.com See the discussion under Standard Deduction , earlier, to decide if it would be to your advantage to itemize deductions. My free tax.com You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than $150,000. My free tax.com For more information, see Overall limitation, later. My free tax.com Medical and dental expenses, some taxes, certain interest expenses, charitable contributions, casualty and theft losses, and certain other miscellaneous expenses may be itemized as deductions on Schedule A (Form 1040). My free tax.com You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Cannot take the standard deduction, Had uninsured medical or dental expenses that are more than 10% of your adjusted gross income (or more than 7. My free tax.com 5% of your adjusted gross income if either you or your spouse is age 65 or older), Paid interest on your home, Paid real estate or personal property taxes, Paid mortgage insurance premiums, Paid state and local income or general sales taxes, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities (see Publication 526, Charitable Contributions), or Have total itemized deductions that are more than the standard deduction that applies to you. My free tax.com See the Schedule A (Form 1040) instructions for more information. My free tax.com Overall limitation. My free tax.com   You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than: $150,000, if married filing separately, $250,000, if single, $275,000, if head of household, or $300,000, if married filing jointly or qualifying widow(er). My free tax.com  If your adjusted gross income exceeds the applicable amount, you will use the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040) to figure your total itemized deductions. My free tax.com Medical and Dental Expenses You can deduct certain medical and dental expenses you paid for yourself, your spouse, and your dependent(s) if you itemize your deductions on Schedule A (Form 1040). My free tax.com Table 4-1 shows some common items that you can or cannot include in figuring your medical expense deduction. My free tax.com For more information, see the following discussions of selected items, which are presented in alphabetical order. My free tax.com A more extensive list of items and further details can be found in Publication 502, Medical and Dental Expenses. My free tax.com Table 4-1. My free tax.com Medical and Dental Expenses Checklist You can include: You cannot include: Bandages Capital expenses for equipment or improvements to your home needed for medical care (see Publication 502) Certain weight-loss expenses for obesity Diagnostic devices Expenses of an organ donor Eye surgery—to promote the correct function of the eye Guide dogs or other animals aiding the blind, deaf, and disabled Hospital services fees (lab work, therapy, nursing services, surgery, etc. My free tax.com ) Lead-based paint removal (see Publication 502) Long-term care contracts, qualified (see Publication 502) Meals and lodging provided by a hospital during medical treatment Medical and hospital insurance premiums Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners) Medicare Part D premiums Oxygen equipment and oxygen Part of life-care fee paid to retirement home designated for medical care Prescription medicines (prescribed by a doctor) and insulin Psychiatric and psychological treatment Social security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (see Publication 502) Special items (artificial limbs, false teeth, eyeglasses, contact lenses, hearing aids, crutches, wheelchair, etc. My free tax.com ) Special education for mentally or physically disabled persons (see Publication 502) Stop-smoking programs Transportation for needed medical care Treatment at a drug or alcohol center (includes meals and lodging provided by the center) Wages for nursing services (see Publication 502) Contributions to Archer MSAs (see Publication 969) Bottled water Diaper service Expenses for your general health (even if following your doctor's advice) such as: —Health club dues —Household help (even if recommended by a doctor) —Social activities, such as dancing or swimming lessons —Trip for general health improvement Flexible spending account reimbursements for medical expenses (if contributions were on a pretax basis) (see Publication 502) Funeral, burial, or cremation expenses Health savings account payments for medical expenses (see Publication 502) Illegal operation or treatment Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc. My free tax.com Medical insurance included in a car insurance policy covering all persons injured in or by your car Medicine you buy without a prescription Nursing care for a healthy baby Prescription drugs you brought in (or ordered shipped) from another country, in most cases (see Publication 502) Surgery for purely cosmetic reasons (see Publication 502) Toothpaste, toiletries, cosmetics, etc. My free tax.com Teeth whitening Weight-loss expenses not for the treatment of obesity or other disease You can deduct only the amount of your medical and dental expenses that is more than 10% of your adjusted gross income (or that is more than 7. My free tax.com 5% of your adjusted gross income if you or your spouse is age 65 or older). My free tax.com What to include. My free tax.com   Generally, you can include only the medical and dental expenses you paid this year, regardless of when the services were provided. My free tax.com If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. My free tax.com If you use a pay-by-phone or online account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. My free tax.com You can include medical expenses you charge to your credit card in the year the charge is made. My free tax.com It does not matter when you actually pay the amount charged. My free tax.com Home Improvements You can include in medical expenses amounts you pay for home improvements if their main purpose is medical care for you, your spouse, or your dependent. My free tax.com Only reasonable costs to accommodate a home to your disabled condition (or that of your spouse or your dependent(s) who live with you) are considered medical care. My free tax.com Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. My free tax.com Publication 502 contains additional information and examples, including a capital expense worksheet, to assist you in figuring the amount of the capital expense that you can include in your medical expenses. My free tax.com Also, see Publication 502 for information about deductible operating and upkeep expenses related to such capital expense items, and for information about improvements, for medical reasons, to property rented by a person with disabilities. My free tax.com Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. My free tax.com This is a personal expense that is not deductible. My free tax.com However, you may be able to include certain expenses paid to a person providing nursing-type services. My free tax.com For more information, see Nursing Services , later. My free tax.com Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. My free tax.com For more information, see Qualified long-term care services under Long-Term Care, later. My free tax.com Hospital Services You can include in medical expenses amounts you pay for the cost of inpatient care at a hospital or similar institution if a principal reason for being there is to receive medical care. My free tax.com This includes amounts paid for meals and lodging. My free tax.com Also, see Meals and Lodging , later. My free tax.com Long-Term Care You can include in medical expenses amounts paid for qualified long-term care services and premiums paid for qualified long-term care insurance contracts. My free tax.com Qualified long-term care services. My free tax.com   Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are: Required by a chronically ill individual, and Provided under a plan of care prescribed by a licensed health care practitioner. My free tax.com Chronically ill individual. My free tax.com    An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions. My free tax.com He or she is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. My free tax.com Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. My free tax.com He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. My free tax.com Maintenance and personal care services. My free tax.com    Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment). My free tax.com Qualified long-term care insurance contracts. My free tax.com   A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. My free tax.com The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract must be used only to reduce future premiums or increase future benefits, and Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses. My free tax.com   The amount of qualified long-term care premiums you can include is limited. My free tax.com You can include the following as medical expenses on Schedule A (Form 1040). My free tax.com Qualified long-term care premiums up to the following amounts. My free tax.com Age 40 or under – $360. My free tax.com Age 41 to 50 – $680. My free tax.com Age 51 to 60 – $1,360. My free tax.com Age 61 to 70 – $3,640. My free tax.com Age 71 or over – $4,550. My free tax.com Unreimbursed expenses for qualified long-term care services. My free tax.com Note. My free tax.com The limit on premiums is for each person. My free tax.com Meals and Lodging You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if your main reason for being there is to receive medical care. My free tax.com You may be able to include in medical expenses the cost of lodging (but not meals) not provided in a hospital or similar institution. My free tax.com You can include the cost of such lodging while away from home if all of the following requirements are met. My free tax.com The lodging is primarily for, and essential to, medical care. My free tax.com The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital. My free tax.com The lodging is not lavish or extravagant under the circumstances. My free tax.com There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. My free tax.com The amount you include in medical expenses for lodging cannot be more than $50 per night for each person. My free tax.com You can include lodging for a person traveling with the person receiving the medical care. My free tax.com For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. My free tax.com (Meals are not included. My free tax.com ) Nursing home. My free tax.com   You can include in medical expenses the cost of medical care in a nursing home or a home for the aged for yourself, your spouse, or your dependent(s). My free tax.com This includes the cost of meals and lodging in the home if a main reason for being there is to get medical care. My free tax.com   Do not include the cost of meals and lodging if the reason for being in the home is personal. My free tax.com However, you can include in medical expenses the part of the cost that is for medical or nursing care. My free tax.com Medical Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. My free tax.com Policies can provide payment for: Hospitalization, surgical fees, X-rays, Prescription drugs and insulin, Dental care, Replacement of lost or damaged contact lenses, and Qualified long-term care insurance contracts (subject to the additional limits included in the discussion on qualified long-term care insurance contracts under Long-Term Care , earlier). My free tax.com If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. My free tax.com The cost of the medical portion must be separately stated in the insurance contract or given to you in a separate statement. My free tax.com Medicare Part A. My free tax.com   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare Part A. My free tax.com The payroll tax paid for Medicare Part A is not a medical expense. My free tax.com If you are not covered under social security (or were not a government employee who paid Medicare tax), you can enroll voluntarily in Medicare Part A. My free tax.com In this situation you can include the premiums you paid for Medicare Part A as a medical expense. My free tax.com Medicare Part B. My free tax.com   Medicare Part B is a supplemental medical insurance. My free tax.com Premiums you pay for Medicare Part B are a medical expense. My free tax.com If you applied for it at age 65 or after you became disabled, you can include in medical expenses the monthly premiums you paid. My free tax.com If you were over age 65 or disabled when you first enrolled, check with your local Social Security Administration office, or go to their website at www. My free tax.com SSA. My free tax.com gov, to find out your premium. My free tax.com Medicare Part D. My free tax.com   Medicare Part D is a voluntary prescription drug insurance program for persons with Medicare Part A or Part B. My free tax.com You can include as a medical expense premiums you pay for Medicare Part D. My free tax.com Prepaid insurance premiums. My free tax.com   Insurance premiums you pay before you are age 65 for medical care for yourself, your spouse, or your dependents after you reach age 65 are medical care expenses in the year paid if they are: Payable in equal yearly installments, or more often, and Payable for at least 10 years, or until you reach age 65 (but not for less than 5 years). My free tax.com Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. My free tax.com A prescribed drug is one that requires a prescription by a doctor for its use by an individual. My free tax.com You can also include amounts you pay for insulin. My free tax.com Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. My free tax.com Imported medicines and drugs. My free tax.com   If you import medicines or drugs from other countries, see Medicines and Drugs From Other Countries, under What Expenses Are Not Includible, in Publication 502. My free tax.com Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. My free tax.com The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. My free tax.com This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. My free tax.com These services can be provided in your home or another care facility. My free tax.com Generally, only the amount spent for nursing services is a medical expense. My free tax.com If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. My free tax.com However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. My free tax.com See Maintenance and personal care services under Qualified long-term care services, earlier. My free tax.com Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. My free tax.com See Child and Dependent Care Credit , later, and Publication 503, Child and Dependent Care Expenses. My free tax.com You can also include in medical expenses part of the amount you pay for that attendant's meals. My free tax.com Divide the food expense among the household members to find the cost of the attendant's food. My free tax.com Then divide that cost in the same manner as in the preceding paragraph. My free tax.com If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. My free tax.com This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. My free tax.com Employment taxes. My free tax.com   You can include as a medical expense social security tax, FUTA, Medicare tax, and state employment taxes you pay for a nurse, attendant, or other person who provides medical care. My free tax.com If the attendant also provides personal and household services, you can include as a medical expense only the amount of employment taxes paid for medical services as explained earlier under Nursing Services. My free tax.com For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. My free tax.com Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. My free tax.com Car expenses. My free tax.com    You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. My free tax.com You cannot include depreciation, insurance, general repair, or maintenance expenses. My free tax.com   If you do not want to use your actual expenses for 2013, you can use the standard medical mileage rate of 24 cents a mile. My free tax.com   You can also include parking fees and tolls. My free tax.com You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. My free tax.com You can also include:    Bus, taxi, train, or plane fares or ambulance service, and Transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone. My free tax.com Do not include transportation expenses if, for purely personal reasons, you choose to travel to another city for an operation or other medical care prescribed by your doctor. My free tax.com Prev  Up  Next   Home   More Online Publications