About Federal Income Tax Dependent Deductions

About Federal Income Tax Dependent Deductions thumbnail
Know how to file for dependent deductions.

When a taxpayer files a federal income tax return, certain individuals can be claimed as dependent deductions. It is important to understand what those deductions are and how they can be used in order to avoid problems with the IRS.

  1. Identification

    • The IRS defines a dependent deduction as exemptions allowed on a federal income tax return for a qualifying child or a qualifying relative.

    Types

    • The IRS defines a qualifying child as a child that passes five tests of dependency. Those tests are relationship, age, residency, support and a special test for qualifying a child for more than one person.

    History

    • According to Economicexpert.com, the system for using dependent deductions was added to the federal income tax system in the 1950s.

    Effects

    • According to World Wide Web Tax, being claimed as a dependent on another federal tax return lowers a person's standard deduction.

    Important Fact

    • If a dependent requires paid care, then the cost of that care could be deducted on a federal tax return.

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References

  • Photo Credit tax forms image by Chad McDermott from Fotolia.com

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