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VITA / TCE

Training

101

​

Qualified Dependents

1

Section C

Lesson 1

VITA / TCE

Training

101

​

Qualified Dependents

1

Section C

Lesson 1

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Determine if a taxpayer may claim a dependent

by applying the appropriate dependency tests.

In this presentation we will:

​

2

Determine if a taxpayer may claim a dependent

by applying the appropriate dependency tests.

In this presentation we will:

​

2

Section C

Why this Matters -- Being able to claim a dependent can affect a tax return in several ways. Depending on the taxpayer's situation, a dependent may:

      • Increase the standard deduction (we will cover this in Lesson 2)
      • Qualify the taxpayer for valuable tax credits.
      • Change filing status eligibility, such as Head of Household.
      • Reduce the overall tax liability or increase a refund.

​

Remember: Always determine dependency eligibility carefully, as it can significantly impact the return.

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3

To claim a dependent,

They must pass 1 of these 2 tests:

Qualifying Child OR Qualifying Relative Testa

3

To claim a dependent,

They must pass 1 of these 2 tests:

Qualifying Child OR Qualifying Relative Testa

Section C

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First, the taxpayer cannot claim a dependent, if someone can claim the taxpayer themselves as a dependent!

​

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Keep this in mind,

especially when dealing with young people

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4

First, the taxpayer cannot claim a dependent, if someone can claim the taxpayer themselves as a dependent!

​

​

Keep this in mind,

especially when dealing with young people

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​

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Citizen/Resident: The taxpayer can’t claim a person as a dependent unless that person is:

​

    • a U.S. citizen,
    • U.S. resident alien,
    • U.S. national,
    • or a resident of Canada or Mexico.

See PUB 4012 Section C

5

Citizen/Resident: The taxpayer can’t claim a person as a dependent unless that person is:

​

    • a U.S. citizen,
    • U.S. resident alien,
    • U.S. national,
    • or a resident of Canada or Mexico.

See PUB 4012 Section C

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Qualifying “Child”

    • U.S. Resident Alien for tax purposes is not the same as a Resident Alien for Immigration/citizen status.

​

    • A U.S. Resident Alien for tax purposes means they have passed the standard presence test—length of time in the U.S.

​

    • Example: Was the “child” present in the U.S. for over 183 days in the tax year you are preparing? If not, see PUB 4012, Section L, to calculate days that count towards the standard presence test to see if they qualify.

See PUB 4012 Section C

6

Qualifying “Child”

    • U.S. Resident Alien for tax purposes is not the same as a Resident Alien for Immigration/citizen status.

​

    • A U.S. Resident Alien for tax purposes means they have passed the standard presence test—length of time in the U.S.

​

    • Example: Was the “child” present in the U.S. for over 183 days in the tax year you are preparing? If not, see PUB 4012, Section L, to calculate days that count towards the standard presence test to see if they qualify.

See PUB 4012 Section C

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Despite the name,

an IRS Qualifying “Child”

does not just mean

son or daughter.

​

7

Despite the name,

an IRS Qualifying “Child”

does not just mean

son or daughter.

​

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8

Qualifying Child Test

Must pass:

    • Relationship Test
    • Age Test
    • Residency Test
    • Support Test
    • Joint Return

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​

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8

Qualifying Child Test

Must pass:

    • Relationship Test
    • Age Test
    • Residency Test
    • Support Test
    • Joint Return

​

​

​

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Qualifying “Child”

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Relationship: There must be a relationship by either blood or marriage between taxpayer and “child”.

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    • Like a son, daughter, stepchild, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (grandchildren, nieces & nephews), OR
    • An adopted child, OR
    • A foster child.

See PUB 4012 Section C

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Qualifying “Child”

​

Relationship: There must be a relationship by either blood or marriage between taxpayer and “child”.

​

    • Like a son, daughter, stepchild, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (grandchildren, nieces & nephews), OR
    • An adopted child, OR
    • A foster child.

See PUB 4012 Section C

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Qualifying “Child”

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Age: The “child” must be:

    • Under age 19 at the end of the year and younger than the taxpayer (or taxpayer’s spouse, if filing jointly),

​

    • Or Under age 24 at the end of the year, a fulltime student for at least one full semester, and younger than the taxpayer (or taxpayer’s spouse, if filing jointly),

​

    • Or any age if permanently and totally disabled

See PUB 4012 Section C

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Qualifying “Child”

​

Age: The “child” must be:

    • Under age 19 at the end of the year and younger than the taxpayer (or taxpayer’s spouse, if filing jointly),

​

    • Or Under age 24 at the end of the year, a fulltime student for at least one full semester, and younger than the taxpayer (or taxpayer’s spouse, if filing jointly),

​

    • Or any age if permanently and totally disabled

See PUB 4012 Section C

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Qualifying “Child”

Residency: The “child” must have lived with the taxpayer for more than half of the year.

Exceptions:

    • Children who were born or died during the year
    • Children of divorced or separated parents or parents who live apart
    • Kidnapped children.
    • Temporary Absence due to special circumstances such as:

*Illness *Education *Business,

*Vacation *Military service

It must be reasonable to assume that the absent person will return to the home after the temporary absence.

See PUB 4012 Section C

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Qualifying “Child”

Residency: The “child” must have lived with the taxpayer for more than half of the year.

Exceptions:

    • Children who were born or died during the year
    • Children of divorced or separated parents or parents who live apart
    • Kidnapped children.
    • Temporary Absence due to special circumstances such as:

*Illness *Education *Business,

*Vacation *Military service

It must be reasonable to assume that the absent person will return to the home after the temporary absence.

See PUB 4012 Section C

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Qualifying “Child”

Support: The “child” must not have provided more than half of his or her own support for the year.

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Important: Notice it doesn’t say the taxpayer must have provided over half the “child’s” support—just the “child” couldn’t have.

See PUB 4012 Section C

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Qualifying “Child”

Support: The “child” must not have provided more than half of his or her own support for the year.

​

Important: Notice it doesn’t say the taxpayer must have provided over half the “child’s” support—just the “child” couldn’t have.

See PUB 4012 Section C

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Joint Return: The “child” was married on December 31ˢᵗ, but isn’t filing a joint return for the tax year.

Unless that joint return is filed only to claim a refund of income tax withheld or estimated tax paid.

Qualifying “Child”

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Example of this:

    • Stephanie, the daughter, is 32 and permanently disabled and married to Mike. She lives with her parents.
    • Her parents pays more than half the cost of her support.
    • Stephanie and Mike received $24,000 in Social Security and a pension of $5,000 in the tax year.
    • They also had $500 in taxes withheld from the pension.

Stephanie’s income is below the Standard Deduction, they do not have to file a return, BUT, are filing just so they can get a refund of the taxes withheld. Stephanie can be claimed by her parents on her tax return as long as the other test were passed.

Joint Return: The “child” was married on December 31ˢᵗ, but isn’t filing a joint return for the tax year.

Unless that joint return is filed only to claim a refund of income tax withheld or estimated tax paid.

Qualifying “Child”

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Example of this:

    • Stephanie, the daughter, is 32 and permanently disabled and married to Mike. She lives with her parents.
    • Her parents pays more than half the cost of her support.
    • Stephanie and Mike received $24,000 in Social Security and a pension of $5,000 in the tax year.
    • They also had $500 in taxes withheld from the pension.

Stephanie’s income is below the Standard Deduction, they do not have to file a return, BUT, are filing just so they can get a refund of the taxes withheld. Stephanie can be claimed by her parents on her tax return as long as the other test were passed.

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Qualifying “Child”

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Is the person a qualifying child of any other taxpayer?

If so, review tables found in PUB 4012 on pages C-2 and C-6

to learn about tie-breaker rules.

See PUB 4012 Section C

Now, let’s see what Qualifying “Relative” means in IRS terms.

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Qualifying “Child”

​

Is the person a qualifying child of any other taxpayer?

If so, review tables found in PUB 4012 on pages C-2 and C-6

to learn about tie-breaker rules.

See PUB 4012 Section C

Now, let’s see what Qualifying “Relative” means in IRS terms.

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Despite the name,

an IRS Qualifying “Relative”

does not necessarily have to be related to you.

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Despite the name,

an IRS Qualifying “Relative”

does not necessarily have to be related to you.

​

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3

To claim a dependent,

They must pass 1 of these 2 tests:

Qualifying Child OR Qualifying Relative Testa

Section C

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Qualifying Relative Test

Must:

    • Fail Qualifying Child Test
    • Pass Relationship Test
    • Pass Residency Test
    • Pass Support Test

​

​

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Qualifying Relative Test

Must:

    • Fail Qualifying Child Test
    • Pass Relationship Test
    • Pass Residency Test
    • Pass Support Test

​

​

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Qualifying “Relative”

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To be the taxpayer’s qualifying “Relative,”

the person cannot be the taxpayer’s qualifying “child”

or the qualifying “child” of any other taxpayer.

See PUB 4012 Section C

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Qualifying “Relative”

​

To be the taxpayer’s qualifying “Relative,”

the person cannot be the taxpayer’s qualifying “child”

or the qualifying “child” of any other taxpayer.

See PUB 4012 Section C

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Qualifying “Relative”

​

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An example of this would be a “child’s” parents receives SSI as their only source of income, therefore, they are not required, to file a tax return.

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Since the parent would NOT benefit by claiming the child, and doesn't need to file a return, they are not considered a Qualifying Child. See if they pass the next test.

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Note: A child isn’t the qualifying “child” of any other taxpayer if....

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The “child’s” parent (or any other person for whom the “child” is defined as a qualifying “child”) isn’t required to file an income tax return.

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Qualifying “Relative”

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An example of this would be a “child’s” parents receives SSI as their only source of income, therefore, they are not required, to file a tax return.

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Since the parent would NOT benefit by claiming the child, and doesn't need to file a return, they are not considered a Qualifying Child. See if they pass the next test.

​

Note: A child isn’t the qualifying “child” of any other taxpayer if....

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The “child’s” parent (or any other person for whom the “child” is defined as a qualifying “child”) isn’t required to file an income tax return.

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Qualifying “Relative”

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Relationship: The person either must be related to the taxpayer in through blood or marriage

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    • Son, daughter, stepchild, foster child, or a descendant of any of them (i.e., grandchild) OR
    • Brother, sister, half brother, half sister, or a son or daughter of any of them (i.e., niece, nephew) OR
    • Father, mother, or an ancestor (grandparent) or sibling (aunt/uncle) of either of them OR
    • Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law OR
    • Be an adopted child

Or….

See PUB 4012 Section C

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Qualifying “Relative”

​

Relationship: The person either must be related to the taxpayer in through blood or marriage

​

    • Son, daughter, stepchild, foster child, or a descendant of any of them (i.e., grandchild) OR
    • Brother, sister, half brother, half sister, or a son or daughter of any of them (i.e., niece, nephew) OR
    • Father, mother, or an ancestor (grandparent) or sibling (aunt/uncle) of either of them OR
    • Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law OR
    • Be an adopted child

Or….

See PUB 4012 Section C

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Qualifying “Relative”

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Or....Have no relationship through blood or marriage but lived with the taxpayer all year as a member of their household

(and their relationship must not violate local law).

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Notice: the last screen DID NOT mention anything

about having to live together.

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So, if there is a relationship through blood or marriage, there is no residency requirement.

​

See PUB 4012 Section C

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Qualifying “Relative”

​

Or....Have no relationship through blood or marriage but lived with the taxpayer all year as a member of their household

(and their relationship must not violate local law).

​

Notice: the last screen DID NOT mention anything

about having to live together.

​

So, if there is a relationship through blood or marriage, there is no residency requirement.

​

See PUB 4012 Section C

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Qualifying “Relative”

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Gross Income: The person’s gross income for the year

must be less than $5,300*. (Tax Year 2026 value)

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Gross income means all income the person received in the form of money, goods, property and services, that isn’t exempt from tax.

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Don’t include Social Security benefits unless the person is married filing a separate return and lived with their spouse at any time during the tax year.

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*There is an exception if the person is disabled and has income from a sheltered workshop.

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See PUB 4012 Section C

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Qualifying “Relative”

​

Gross Income: The person’s gross income for the year

must be less than $5,300*. (Tax Year 2026 value)

​

Gross income means all income the person received in the form of money, goods, property and services, that isn’t exempt from tax.

​

Don’t include Social Security benefits unless the person is married filing a separate return and lived with their spouse at any time during the tax year.

​

*There is an exception if the person is disabled and has income from a sheltered workshop.

​

See PUB 4012 Section C

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Qualifying “Relative”

​

Support Test: The taxpayer must provide

more than half

of the person’s total support for the year

in order to claim them as

a Qualifying Relative.

See PUB 4012 Section C

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Qualifying “Relative”

​

Support Test: The taxpayer must provide

more than half

of the person’s total support for the year

in order to claim them as

a Qualifying Relative.

See PUB 4012 Section C

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See PUB 4012 Section C

    • Eddie is 28 years old.
    • He is permanently and totally disabled and does not work.
    • He’s been living with his grandparents in Cape Coral for 12 years.
    • Eddie gets about $8200 a year in Social Security that is mostly used to pay for medical expenses and long-term care insurance.
    • Antonio & Margarita provide over 50% of Eddie’s support.

​

Can they claim Eddie as a dependent? Yes or No?

​

​

Meet Antonio & Margarita

Grandparents of Eddie

This is Eddie

Case Study 1

​

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See PUB 4012 Section C

    • Eddie is 28 years old.
    • He is permanently and totally disabled and does not work.
    • He’s been living with his grandparents in Cape Coral for 12 years.
    • Eddie gets about $8200 a year in Social Security that is mostly used to pay for medical expenses and long-term care insurance.
    • Antonio & Margarita provide over 50% of Eddie’s support.

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Can they claim Eddie as a dependent? Yes or No?

​

​

Meet Antonio & Margarita

Grandparents of Eddie

This is Eddie

Case Study 1

​

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Can they claim Eddie as a dependent? Yes or No?

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Yes!

​

Meet Antonio & Margarita

Grandparents of Eddie

This is Eddie

Case Study 1

He’s a Qualifying Child

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    • Eddie is 28 years old.
    • He is permanently and totally disabled and does not work.
    • He’s been living with his grandparents in Cape Coral for 12 years.
    • Eddie gets about $8200 a year in Social Security that is mostly used to pay for medical expenses and long-term care insurance.
    • Antonio & Margarita provide over 50% of Eddie’s support.

Eddie passes the:

Relationship test Residency Test

Age test (any age if permanently totally disabled)

Support Test (Eddie doe not provide over half his own support)

Joint Return Test

​

Yes!

​

Meet Antonio & Margarita

Grandparents of Eddie

This is Eddie

Case Study 1

He’s a Qualifying Child

24

    • Eddie is 28 years old.
    • He is permanently and totally disabled and does not work.
    • He’s been living with his grandparents in Cape Coral for 12 years.
    • Eddie gets about $8200 a year in Social Security that is mostly used to pay for medical expenses and long-term care insurance.
    • Antonio & Margarita provide over 50% of Eddie’s support.

Eddie passes the:

Relationship test Residency Test

Age test (any age if permanently totally disabled)

Support Test (Eddie doe not provide over half his own support)

Joint Return Test

​

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See PUB 4012 Section C

    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.

Can Rhonda claim Susan this year?

Yes or No?

​

Meet Rhonda

This is Rhoda’s friend

Susan and her son Brian.

Case Study 2

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See PUB 4012 Section C

    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.

Can Rhonda claim Susan this year?

Yes or No?

​

Meet Rhonda

This is Rhoda’s friend

Susan and her son Brian.

Case Study 2

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Can Rhonda claim Susan this year?

Yes or No?

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No.

​

Meet Rhoda

This is Rhoda’s friend

Susan and her son Brian.

Case Study 2 Continued

26

    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.

Can Rhonda claim Susan this year?

Yes or No?

While Rhonda may pay over 50% of Susan and Brian’s support, and they lived with her all year passing the residency test, Susan did have over $5,300 in income so Rhonda cannot claim Susan.

No.

​

Meet Rhoda

This is Rhoda’s friend

Susan and her son Brian.

Case Study 2 Continued

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    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.

Can Rhonda claim Susan this year?

Yes or No?

While Rhonda may pay over 50% of Susan and Brian’s support, and they lived with her all year passing the residency test, Susan did have over $5,300 in income so Rhonda cannot claim Susan.

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See PUB 4012 Section C-2

Meet Rhoda

This is Rhoda’s friend

Susan and her son Brian.

Case Study 3

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    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.

Can Rhonda claim Brian this year?

Yes or No?

​

See PUB 4012 Section C-2

Meet Rhoda

This is Rhoda’s friend

Susan and her son Brian.

Case Study 3

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    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.

Can Rhonda claim Brian this year?

Yes or No?

​

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Can Rhonda claim Brian this year?

Yes or No?

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Maybe

​

See PUB 4012 Section C

Meet Rhoda

This is Rhoda’s friend

Susan and her

son Brian.

Case Study 3

Could be a

Qualifying Relative

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    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.
    • If Susan files a tax return and claims Brian, then Rhonda cannot claim him.
    • If Susan and Brian’s father don’t claim Brian on a tax return, then Rhonda can claim Brian as a dependent IF her AGI is more than Susan’s

Maybe

​

See PUB 4012 Section C

Meet Rhoda

This is Rhoda’s friend

Susan and her

son Brian.

Case Study 3

Could be a

Qualifying Relative

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    • Susan lost her job In 2025 and has not found a new job.
    • Susan had to move out of her apartment since she could no longer pay the rent or utilities.
    • Rhonda let Susan and Brian move in with her in August of 2025 and they are still living with her.
    • Susan receives unemployment which totaled $6,275 this year and child support.
    • Rhonda pays all the cost of their house, utilities and half of the groceries.
    • If Susan files a tax return and claims Brian, then Rhonda cannot claim him.
    • If Susan and Brian’s father don’t claim Brian on a tax return, then Rhonda can claim Brian as a dependent IF her AGI is more than Susan’s

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Meet Gladys and Frank

This is their son David

Case Study 4

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    • David is a single 22 years old and a full-time student in college.
    • He worked part-time last year and earned $7,142 last year.
    • He lives in a dorm at college.
    • David does not pay over half his support; he still relies on help from his mom and dad.
    • They all are U.S. citizens

Can Gladys and Frank

claim David this year?

Yes or No?

See PUB 4012 Section C

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Meet Gladys and Frank

This is their son David

Case Study 4

​

    • David is a single 22 years old and a full-time student in college.
    • He worked part-time last year and earned $7,142 last year.
    • He lives in a dorm at college.
    • David does not pay over half his support; he still relies on help from his mom and dad.
    • They all are U.S. citizens

Can Gladys and Frank

claim David this year?

Yes or No?

See PUB 4012 Section C

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Yes!

​

He’s a Qualifying Child

Meet Gladys and Frank

This is their son David

Case Study 4

​

    • David is a single 22 years old and a full-time student in college.
    • He worked part-time last year and earned $7,142 last year.
    • He lives in a dorm at college.
    • David does not pay over half his support; he still relies on help from his mom and dad.
    • They all are U.S. citizens

David passes the:

        • Relationship test & Age test (under 24

and a full-time student in college)

        • Residency-living away from home for school is considered a temporary absence.
        • The income is not an issue for a full-time college student As long as he passes the support Test (David does not provide over half his own support)
        • U.S. Citizen and Joint Return test

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Yes!

​

He’s a Qualifying Child

Meet Gladys and Frank

This is their son David

Case Study 4

​

    • David is a single 22 years old and a full-time student in college.
    • He worked part-time last year and earned $7,142 last year.
    • He lives in a dorm at college.
    • David does not pay over half his support; he still relies on help from his mom and dad.
    • They all are U.S. citizens

David passes the:

        • Relationship test & Age test (under 24

and a full-time student in college)

        • Residency-living away from home for school is considered a temporary absence.
        • The income is not an issue for a full-time college student As long as he passes the support Test (David does not provide over half his own support)
        • U.S. Citizen and Joint Return test

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Meet Dennis

This is his girlfriend Naomi

Case Study 5

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    • Dennis and Naomi moved in together in March of the tax year.
    • Naomi lost her job when her company closed in 2020.
    • She has not found a new one yet.
    • Naomi’s had no income for the current year.
    • Dennis pays for everything-food, rent, utilities, etc.,

Can Dennis claim Naomi this year?

​

See PUB 4012 Section C

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Meet Dennis

This is his girlfriend Naomi

Case Study 5

​

    • Dennis and Naomi moved in together in March of the tax year.
    • Naomi lost her job when her company closed in 2020.
    • She has not found a new one yet.
    • Naomi’s had no income for the current year.
    • Dennis pays for everything-food, rent, utilities, etc.,

Can Dennis claim Naomi this year?

​

See PUB 4012 Section C

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Meet Dennis

This is his girlfriend Naomi

Case Study 5

​

    • Dennis and Naomi moved in together in March of the tax year.
    • Naomi lost her job when her company closed over a year ago and she has not found a new one yet.
    • Naomi’s had no income for the current year.
    • Dennis pays for everything-food, rent, utilities, etc.,
    • Naomi is 25 and a U.S. citizen

While Naomi passes the

Income test , Citizen test, and Support test (Dennis pays over 50% of her support)…

She does not pass the residency test as she

lived with him only part of the tax year.

No

​

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Meet Dennis

This is his girlfriend Naomi

Case Study 5

​

    • Dennis and Naomi moved in together in March of the tax year.
    • Naomi lost her job when her company closed over a year ago and she has not found a new one yet.
    • Naomi’s had no income for the current year.
    • Dennis pays for everything-food, rent, utilities, etc.,
    • Naomi is 25 and a U.S. citizen

While Naomi passes the

Income test , Citizen test, and Support test (Dennis pays over 50% of her support)…

She does not pass the residency test as she

lived with him only part of the tax year.

No

​

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Meet Zoe

Case Study 6

Zoe, is an eighteen-year-old single mother who can be claimed as a dependent by her parents.

​

Harper was born in May of the tax year.

Can Zoe claim Harper?

Yes or No?

See PUB 4012 Section C

Meet Harper

33

Meet Zoe

Case Study 6

Zoe, is an eighteen-year-old single mother who can be claimed as a dependent by her parents.

​

Harper was born in May of the tax year.

Can Zoe claim Harper?

Yes or No?

See PUB 4012 Section C

Meet Harper

33

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Meet Zoe

Case Study 6

​

Zoe, is an eighteen-year-old single mother who can be claimed as a dependent by her parents.

​

Harper was born in May of the tax year.

No

​

Since Zoe can be claimed as a dependent, she can not claim a dependent on her tax return. Dependents cannot claim dependents.

See PUB 4012 Section C

Meet Harper

34

Meet Zoe

Case Study 6

​

Zoe, is an eighteen-year-old single mother who can be claimed as a dependent by her parents.

​

Harper was born in May of the tax year.

No

​

Since Zoe can be claimed as a dependent, she can not claim a dependent on her tax return. Dependents cannot claim dependents.

See PUB 4012 Section C

Meet Harper

34

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Meet The Phillips

Case Study 7

    • Holly is a U.S. citizen, is 8 years old and had a small role in a television series.
    • She made $60,000 during the tax year, but her parents put all the money in a trust fund to pay for college.
    • She lived with her parents all year.

Can the Phillip’s claim Holly on their tax return?

Yes or No?

See PUB 4012 Section C

Meet their beautiful daughter Holly

35

Meet The Phillips

Case Study 7

    • Holly is a U.S. citizen, is 8 years old and had a small role in a television series.
    • She made $60,000 during the tax year, but her parents put all the money in a trust fund to pay for college.
    • She lived with her parents all year.

Can the Phillip’s claim Holly on their tax return?

Yes or No?

See PUB 4012 Section C

Meet their beautiful daughter Holly

35

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Meet The Phillips

Case Study 7

    • Holly is a U.S. citizen, is 8 years old and had a small role in a television series.
    • She made $60,000 during the tax year, but her parents put all the money in a trust fund to pay for college.
    • She lived with her parents all year.

Yes

​

While Holly did make a lot of money this year, it was not used to pay for her support during the year.

See PUB 4012 Section C

Meet their beautiful daughter Holly

36

Meet The Phillips

Case Study 7

    • Holly is a U.S. citizen, is 8 years old and had a small role in a television series.
    • She made $60,000 during the tax year, but her parents put all the money in a trust fund to pay for college.
    • She lived with her parents all year.

Yes

​

While Holly did make a lot of money this year, it was not used to pay for her support during the year.

See PUB 4012 Section C

Meet their beautiful daughter Holly

36

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Hopefully, you now realize how important it is for your clients to complete the intake form:

    • To list everyone who lives with them, or
    • Who they support that do not live with.
    • AND—for you to do a thorough intake interview.

​

Make sure to carefully review it and ask them questions to get clarification. A lot of times the clients leave people off the form because they think they can’t claim them when they can. Or they list people they can’t claim and think they can. Don’t assume this is complete—ASK!!!

37

Hopefully, you now realize how important it is for your clients to complete the intake form:

    • To list everyone who lives with them, or
    • Who they support that do not live with.
    • AND—for you to do a thorough intake interview.

​

Make sure to carefully review it and ask them questions to get clarification. A lot of times the clients leave people off the form because they think they can’t claim them when they can. Or they list people they can’t claim and think they can. Don’t assume this is complete—ASK!!!

37

42 of 43

Get to Know Your Tools!!!

​

PUB 4012

      • Section C- Dependents

​

Available Online irs.gov/pub/irs-pdf/p4012.pdf

*updated online every October

*In-print available in mid –November

​

A link to PUB 4012 can also be found on vitaresources.net home page

20XX

38

Get to Know Your Tools!!!

​

PUB 4012

      • Section C- Dependents

​

Available Online irs.gov/pub/irs-pdf/p4012.pdf

*updated online every October

*In-print available in mid –November

​

A link to PUB 4012 can also be found on vitaresources.net home page

20XX

38

43 of 43

Up Next: Practice #1

Woo-Hoo!

You Did It!

39

Up Next: Practice #1

Woo-Hoo!

You Did It!

39