The Terms for Claiming a Dependent on Taxes
Most people want to pay less tax each year; the legal way to accomplish this is to find tax deductions and apply them to your return. Each dependent you claim on your tax return allows you to claim a tax deduction. In 2010, the deduction for each dependent was $3,650 -- a significant amount. Only certain circumstances allow a person to be claimed as a dependent; before making this declaration on your next tax return, you'll need to check the IRS rules for dependents to make sure your situation qualifies.
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Children
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Children are almost always automatically considered dependents for tax purposes. A child dependent includes your biological children, stepchildren or foster children. This category also includes grandchildren, siblings, half-siblings and step-siblings. To qualify as a tax dependent, the child must be under the age of 19 at the end of the year and live with you for more than half of the year. If the child is a student, the age limit is higher; students attending school full-time are considered dependents up to the age of 24.
Relatives
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Other relatives also allow you to claim an exemption for their dependent status, even if they don't live with you. Parents, grandparents, stepparents, aunts or uncles, nieces or nephews and in-laws may also be considered dependents. In order to be claimed as a dependent, the relative must be a U.S. citizen or permanent resident residing in the U.S. who did not file joint income taxes with another party. You'll need to show that he received at least half of his support from you throughout the year and he made less than the yearly income threshold, which was $3,650 in 2010.
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Unrelated Household Members
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An unrelated household member who lived with you for the entire year might also be considered dependent for tax purposes. The person must be a U.S. citizen or permanent resident who did not file a joint return with another party that year. You'll need to show that you provided at least half of her support and that her income on her own was less than the income threshold for that year.
Yourself & Your Spouse
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Unfortunately, neither you nor your spouse can be claimed as a dependent on your tax return. However, each person is entitled to a personal exemption for himself and for his spouse that gives the same benefit as a dependent.
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