Question

Bob and Donna have been married for 35 years and have filed joint returns since their marriage. The couple has three children: Jack (age 11), Bonnie (age 16), and Margie (age 22). All three children live with Bob and Donna. In addition, none of the children provide more than half of their own support. Margie is a full-time student at a local university and does not have any gross income.

Assume the original facts, except that Margie is married. She and her husband live with Bob and Donna and they file a joint return. They have a $2,000 tax liability for the year. Can Bob and Donna claim Margie as a dependent on their tax return? Why or why not?

Answer 1

Bob and Donna cannot claim Margie as a dependent on their tax return although the below noted four conditions are fulfilled but the additional condition specified in additional rules is not fulfilled as Margie is married, she and her husdand filed a joint return and they also have tax liability for the year.

In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:

• Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.
• Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
• Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
• Support — did not provide more than one-half of his/her own support for the year.

Additional Rules

While the four qualifying child tests generally apply for claiming in a tax return, however there are some additions or variations for particular provisions:

Dependent — a qualifying child must also meet these tests:

• Nationality — be a U.S. citizen or national, or a resident of the U.S., Canada or Mexico. There is an exception for certain adopted children.
• Marital status — if married, did not file a joint return for that year, unless the return is filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns. (doesn't fulfilled this condition, hence Bob and Donna cannot claim Margie as a dependent on their tax return).