Most taxpayers can claim an exemption for themselves and reduce their taxable income on their tax return. They may also be able to claim an exemption for each of their dependents. Each exemption normally allows them to deduct $4,050 on their 2016 tax return. Here are seven key points to keep in mind on dependents and exemptions:
1. Personal Exemptions. Taxpayers can usually claim exemptions for themselves and their spouses on a jointly filed tax return.
2. Exemptions for Dependents. A dependent is either a child or a relative who meets a set of tests. Taxpayers can normally claim dependents as exemptions.
3. No Exemption on Dependent’s Return. If a taxpayer can claim a person as a dependent, then that dependent cannot claim a personal exemption on his or her own tax return.
4. Dependents May Have to File. A dependent may have to file a tax return. This depends on certain factors like total income, whether they are married and if they owe certain taxes.
5. Exemption Phase-Out. Taxpayers earning above a certain amount will lose part or all the $4,050 exemption.
Courtesy of IRS
For more information contact Neikirk, Mahoney and Smith at 502-896-2999
No comments:
Post a Comment