Question

Susie maintains a household that includes a daughter (age 29) and a cousin (age 28). Susie says that she can claim the cousin as a dependent, but not her daughter. Could Susie be correct? Discuss the dependency exemption rules and how they would apply to this scenario.

Answer 1

Susie is not correct in her contention that she can claim cousin as a dependent but not her daughter ,daughter can be claimed as dependent if she is qualifying as a dependent.

As per dependency rule a person can claim as deduction for only one dependent if qualify dependency rule and can get exemption for such,only exemption is there for each person.

SSN no is to be provided of dependent in tax return but however if anyone claim in his tax return you as a dependent then you can't claim anyone as dependent.

General dependency rule are as follows:

1.Dependent's can have their own tax return but they cannot file joint income tax return unless that return is for refund purpose.

2.Dependent must be US resident/national or resident alien

3.they must have a taxpayer identification number usually Social security number

Further requirements for claiming children as dependent are:

1.daughter must leave with Susie for atleast half an year.

2.Child can be related as daughter ,son,foster child ,brother sister ,step brother/sister or descendant of any of those.

3.Child must be younger than you unless disabled

4.The child must be 18 or younger at the end of the year or under 24 if student and must attended school full time in a row for 5 month in a year

For claiming other relatives and parent as dependent additional requirements are as follows:

1.The person cannot have a gross yearly income above $4050

2.The person must be related to you or lived with you for all year as member of your household

Hence if above condition fulfill Susie can claim cousin or daughter as dependent .