What Is the Definition of a Dependent for Taxes?

A dependent is a person who relies on another person for financial support. A person who claims a dependent on his taxes has a number of different deductions he can claim.

Who is a Dependent?

Children and spouses are the most common types of dependents. A dependent can also be anyone who is mentally or physically disabled, a common law spouse or an adopted child.

Tax Breaks

A tax refund is given for every dependent for whom a person is responsible. The tax rate varies according to the type of dependent and to what degree he is financially dependent.

Different Definitions

The exact definition of a dependent varies depending on which institution is giving the definition. The Internal Revenue Service (IRS) usually has a much narrower definition of a dependent as opposed to an insurance company.

Age

The IRS and most insurance companies allow a child to remain a dependent until age 24 if he is dependent. Under other circumstances, the IRS designates 19 as the cutoff age and insurance companies designate 21.

Pros and Cons

A person may wish to stay a dependent to receive lower insurance premiums under his parents' insurance, but may also choose to become independent to receive additional tax breaks.

References

• Legal Qandas: What is a Dependent?
• Lawyers: Dependent Tax Credits FAQs