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1040 Form

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1040 Form

1040 form Publication 560 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSEP plans. 1040 form SIMPLE plans. 1040 form Qualified plans. 1040 form Ordering forms and publications. 1040 form Tax questions. 1040 form Future Developments For the latest information about developments related to Publication 560, such as legislation enacted after we release it, go to www. 1040 form irs. 1040 form gov/pub560. 1040 form What's New Compensation limit increased for 2013 and 2014. 1040 form  For 2013 the maximum compensation used for figuring contributions and benefits increases to $255,000. 1040 form This limit increases to $260,000 for 2014. 1040 form Elective deferral limit for 2013 and 2014. 1040 form  The limit on elective deferrals, other than catch-up contributions, increases to $17,500 for 2013 and remains at $17,500 for 2014. 1040 form These limits apply for participants in SARSEPs, 401(k) plans (excluding SIMPLE plans), section 403(b) plans and section 457(b) plans. 1040 form Defined contribution limit increased for 2013 and 2014. 1040 form  The limit on contributions, other than catch-up contributions, for a participant in a defined contribution plan increases to $51,000 for 2013. 1040 form This limit increases to $52,000 for 2014. 1040 form SIMPLE plan salary reduction contribution limit for 2013 and 2014. 1040 form  The limit on salary reduction contributions, other than catch-up contributions, increases to $12,000 for 2013 and remains at $12,000 for 2014. 1040 form Catch-up contribution limit remains unchanged for 2013 and 2014. 1040 form  A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. 1040 form The catch-up contribution limitation for defined contribution plans other than SIMPLE plans remains unchanged at $5,500 for 2013 and 2014. 1040 form The catch-up contribution limitation for SIMPLE plans remains unchanged at $2,500 for 2013 and 2014. 1040 form The catch-up contributions a participant can make for a year cannot exceed the lesser of the following amounts. 1040 form The catch-up contribution limit. 1040 form The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. 1040 form See “Catch-up contributions” under Contribution Limits and Limit on Elective Deferrals in chapters 3 and 4, respectively, for more information. 1040 form All section references are to the Internal Revenue Code, unless otherwise stated. 1040 form Reminders In-plan Roth rollovers. 1040 form  Section 402A(c)(4) provides for a distribution from an individual's account in a 401(k) plan, other than from a designated Roth account, that is rolled over to the individual's designated Roth account in the same plan. 1040 form An in-plan Roth rollover is not treated as a distribution for most purposes. 1040 form Section 402A(c)(4) was added by the Small Business Jobs Act of 2010 and applies to distributions made after September 27, 2010. 1040 form For additional guidance on in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. 1040 form R. 1040 form B. 1040 form 872, available at  www. 1040 form irs. 1040 form gov/irb/2010-51_IRB/ar11. 1040 form html. 1040 form In-plan Roth rollovers expanded. 1040 form  Beginning in 2013, a plan with designated Roth accounts can permit a participant to roll over amounts into a designated Roth account from his or her other accounts in the same plan, regardless of whether the participant is eligible for a distribution from the other accounts. 1040 form Section 402A(c)(4) was amended by the American Taxpayer Relief Act of 2012. 1040 form For more information, see Notice 2013-74, 2013-52 I. 1040 form R. 1040 form B. 1040 form 819, available at www. 1040 form irs. 1040 form gov/irb/2013-52_IRB/ar11. 1040 form html. 1040 form Credit for startup costs. 1040 form  You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan. 1040 form The credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. 1040 form You can choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective. 1040 form You must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year. 1040 form At least one participant must be a non-highly compensated employee. 1040 form The employees generally cannot be substantially the same employees for whom contributions were made or benefits accrued under a plan of any of the following employers in the 3-tax-year period immediately before the first year to which the credit applies. 1040 form You. 1040 form A member of a controlled group that includes you. 1040 form A predecessor of (1) or (2). 1040 form The credit is part of the general business credit, which can be carried back or forward to other tax years if it cannot be used in the current year. 1040 form However, the part of the general business credit attributable to the small employer pension plan startup cost credit cannot be carried back to a tax year beginning before January 1, 2002. 1040 form You cannot deduct the part of the startup costs equal to the credit claimed for a tax year, but you can choose not to claim the allowable credit for a tax year. 1040 form To take the credit, use Form 8881, Credit for Small Employer Pension Plan Startup Costs. 1040 form Retirement savings contributions credit. 1040 form  Retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. 1040 form The maximum contribution eligible for the credit is $2,000. 1040 form To take the credit, use Form 8880, Credit for Qualified Retirement Savings Contributions. 1040 form For more information on who is eligible for the credit, retirement plan contributions eligible for the credit and how to figure the credit, see Form 8880 and its instructions or go to the IRS website and search Retirement Topics-Retirement Savings Contributions Credit (Saver's Credit). 1040 form Photographs of missing children. 1040 form  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040 form Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040 form You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040 form Introduction This publication discusses retirement plans you can set up and maintain for yourself and your employees. 1040 form In this publication, “you” refers to the employer. 1040 form See chapter 1 for the definition of the term employer and the definitions of other terms used in this publication. 1040 form This publication covers the following types of retirement plans. 1040 form SEP (simplified employee pension) plans. 1040 form SIMPLE (savings incentive match plan for employees) plans. 1040 form Qualified plans (also called H. 1040 form R. 1040 form 10 plans or Keogh plans when covering self-employed individuals), including 401(k) plans. 1040 form SEP, SIMPLE, and qualified plans offer you and your employees a tax-favored way to save for retirement. 1040 form You can deduct contributions you make to the plan for your employees. 1040 form If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. 1040 form You can also deduct trustees' fees if contributions to the plan do not cover them. 1040 form Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. 1040 form Under a 401(k) plan, employees can have you contribute limited amounts of their before-tax (after-tax, in the case of a qualified Roth contribution program) pay to the plan. 1040 form These amounts (and the earnings on them) are generally tax free until your employees receive distributions from the plan or, in the case of a qualified distribution from a designated Roth account, completely tax free. 1040 form What this publication covers. 1040 form   This publication contains the information you need to understand the following topics. 1040 form What type of plan to set up. 1040 form How to set up a plan. 1040 form How much you can contribute to a plan. 1040 form How much of your contribution is deductible. 1040 form How to treat certain distributions. 1040 form How to report information about the plan to the IRS and your employees. 1040 form Basic features of SEP, SIMPLE, and qualified plans. 1040 form The key rules for SEP, SIMPLE, and qualified plans are outlined in Table 1. 1040 form SEP plans. 1040 form   SEPs provide a simplified method for you to make contributions to a retirement plan for yourself and your employees. 1040 form Instead of setting up a profit-sharing or money purchase plan with a trust, you can adopt a SEP agreement and make contributions directly to a traditional individual retirement account or a traditional individual retirement annuity (SEP-IRA) set up for yourself and each eligible employee. 1040 form SIMPLE plans. 1040 form   Generally, if you had 100 or fewer employees who received at least $5,000 in compensation last year, you can set up a SIMPLE plan. 1040 form Under a SIMPLE plan, employees can choose to make salary reduction contributions rather than receiving these amounts as part of their regular pay. 1040 form In addition, you will contribute matching or nonelective contributions. 1040 form The two types of SIMPLE plans are the SIMPLE IRA plan and the SIMPLE 401(k) plan. 1040 form Qualified plans. 1040 form   The qualified plan rules are more complex than the SEP plan and SIMPLE plan rules. 1040 form However, there are advantages to qualified plans, such as increased flexibility in designing plans and increased contribution and deduction limits in some cases. 1040 form Table 1. 1040 form Key Retirement Plan Rules for 2013 Type  of  Plan Last Date for Contribution Maximum Contribution Maximum Deduction When To Set Up Plan SEP Due date of employer's return (including extensions). 1040 form Smaller of $51,000 or 25%1 of participant's compensation. 1040 form 2 25%1 of all participants' compensation. 1040 form 2 Any time up to the due date of employer's return (including extensions). 1040 form SIMPLE IRA and SIMPLE 401(k) Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made. 1040 form 4  Matching or nonelective contributions: Due date of employer's return (including extensions). 1040 form Employee contribution: Salary reduction contribution up to $12,000, $14,500 if age 50 or over. 1040 form   Employer contribution:  Either dollar-for-dollar matching contributions, up to 3% of employee's compensation,3 or fixed nonelective contributions of 2% of compensation. 1040 form 2 Same as maximum contribution. 1040 form Any time between 1/1 and 10/1 of the calendar year. 1040 form   For a new employer coming into existence after 10/1, as soon as administratively feasible. 1040 form Qualified Plan: Defined Contribution Plan  Elective deferral: Due date of employer's return (including extensions). 1040 form 4   Employer contribution: Money Purchase or Profit-Sharing: Due date of employer's return (including extensions). 1040 form  Employee contribution: Elective deferral up to $17,500, $23,000 if age 50 or over. 1040 form   Employer contribution: Money Purchase: Smaller of $51,000 or 100%1 of participant's compensation. 1040 form 2  Profit-Sharing: Smaller of $51,000 or 100%1 of participant's compensation. 1040 form 2  25%1 of all participants' compensation2, plus amount of elective deferrals made. 1040 form   By the end of the tax year. 1040 form Qualified Plan: Defined Benefit Plan Contributions generally must be paid in quarterly installments, due 15 days after the end of each quarter. 1040 form See Minimum Funding Requirement in chapter 4. 1040 form Amount needed to provide an annual benefit no larger than the smaller of $205,000 or 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. 1040 form Based on actuarial assumptions and computations. 1040 form By the end of the tax year. 1040 form 1Net earnings from self-employment must take the contribution into account. 1040 form See Deduction Limit for Self-Employed Individuals in chapters 2 and 4 . 1040 form  2Compensation is generally limited to $255,000 in 2013. 1040 form  3Under a SIMPLE 401(k) plan, compensation is generally limited to $255,000 in 2013. 1040 form  4Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions and elective deferrals. 1040 form What this publication does not cover. 1040 form   Although the purpose of this publication is to provide general information about retirement plans you can set up for your employees, it does not contain all the rules and exceptions that apply to these plans. 1040 form You may also need professional help and guidance. 1040 form   Also, this publication does not cover all the rules that may be of interest to employees. 1040 form For example, it does not cover the following topics. 1040 form The comprehensive IRA rules an employee needs to know. 1040 form These rules are covered in Publication 590, Individual Retirement Arrangements (IRAs). 1040 form The comprehensive rules that apply to distributions from retirement plans. 1040 form These rules are covered in Publication 575, Pension and Annuity Income. 1040 form The comprehensive rules that apply to section 403(b) plans. 1040 form These rules are covered in Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). 1040 form Comments and suggestions. 1040 form   We welcome your comments about this publication and your suggestions for future editions. 1040 form   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040 form NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040 form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040 form   You can send your comments from www. 1040 form irs. 1040 form gov/formspubs. 1040 form Click on “More Information” and then on “Give us feedback. 1040 form ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040 form Ordering forms and publications. 1040 form   Visit www. 1040 form irs. 1040 form gov/formspubs to download forms  and publications, call 1-800-TAX-FORM  (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 1040 form Internal Revenue Service 1201 N. 1040 form Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040 form   If you have a tax question, check the information available on IRS. 1040 form gov or call 1-800-829-1040. 1040 form We cannot answer tax questions sent to either of the above addresses. 1040 form Note. 1040 form Forms filed electronically with the Department of Labor are not available on the IRS website. 1040 form Instead, see www. 1040 form efast. 1040 form dol. 1040 form gov. 1040 form Prev  Up  Next   Home   More Online Publications
 
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The 1040 Form

1040 form 3. 1040 form   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. 1040 form Taxpayer identification numbers for aliens. 1040 form Taxpayer identification numbers for adoptees. 1040 form What's New Exemption amount. 1040 form  The amount you can deduct for each exemption has increased. 1040 form It was $3,800 for 2012. 1040 form It is $3,900 for 2013. 1040 form Exemption phaseout. 1040 form  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. 1040 form For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). 1040 form See Phaseout of Exemptions , later. 1040 form Introduction This chapter discusses the following topics. 1040 form Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. 1040 form Exemptions for dependents — You generally can take an exemption for each of your dependents. 1040 form A dependent is your qualifying child or qualifying relative. 1040 form If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. 1040 form Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. 1040 form Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. 1040 form Deduction. 1040 form   Exemptions reduce your taxable income. 1040 form You can deduct $3,900 for each exemption you claim in 2013. 1040 form But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. 1040 form See Phaseout of Exemptions , later. 1040 form How to claim exemptions. 1040 form    How you claim an exemption on your tax return depends on which form you file. 1040 form    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. 1040 form    If you file Form 1040A, complete lines 6a through 6d. 1040 form The total number of exemptions you can claim is the total in the box on line 6d. 1040 form Also complete line 26. 1040 form   If you file Form 1040, complete lines 6a through 6d. 1040 form The total number of exemptions you can claim is the total in the box on line 6d. 1040 form Also complete line 42. 1040 form Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). 1040 form While each is worth the same amount ($3,900 for 2013), different rules apply to each type. 1040 form Personal Exemptions You are generally allowed one exemption for yourself. 1040 form If you are married, you may be allowed one exemption for your spouse. 1040 form These are called personal exemptions. 1040 form Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. 1040 form If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. 1040 form Your Spouse's Exemption Your spouse is never considered your dependent. 1040 form Joint return. 1040 form   On a joint return you can claim one exemption for yourself and one for your spouse. 1040 form Separate return. 1040 form   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. 1040 form This is true even if the other taxpayer does not actually claim your spouse as a dependent. 1040 form You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. 1040 form S. 1040 form tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. 1040 form Death of spouse. 1040 form   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . 1040 form If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . 1040 form   If you remarried during the year, you cannot take an exemption for your deceased spouse. 1040 form   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. 1040 form If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. 1040 form Divorced or separated spouse. 1040 form   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. 1040 form This rule applies even if you provided all of your former spouse's support. 1040 form Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. 1040 form You can claim an exemption for a dependent even if your dependent files a return. 1040 form The term “dependent” means: A qualifying child, or A qualifying relative. 1040 form The terms “ qualifying child ” and “ qualifying relative ” are defined later. 1040 form You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. 1040 form Dependent taxpayer test. 1040 form Joint return test. 1040 form Citizen or resident test. 1040 form These three tests are explained in detail later. 1040 form All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. 1040 form Table 3-1. 1040 form Overview of the Rules for Claiming an Exemption for a Dependent Caution. 1040 form This table is only an overview of the rules. 1040 form For details, see the rest of this chapter. 1040 form You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. 1040 form   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. 1040 form   You cannot claim a person as a dependent unless that person is a U. 1040 form S. 1040 form citizen, U. 1040 form S. 1040 form resident alien, U. 1040 form S. 1040 form national, or a resident of Canada or Mexico. 1040 form 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. 1040 form   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. 1040 form   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. 1040 form   The child must have lived with you for more than half of the year. 1040 form 2  The child must not have provided more than half of his or her own support for the year. 1040 form   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). 1040 form  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. 1040 form See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. 1040 form   The person cannot be your qualifying child or the qualifying child of any other taxpayer. 1040 form   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). 1040 form   The person's gross income for the year must be less than $3,900. 1040 form 3  You must provide more than half of the person's total support for the year. 1040 form 4  1There is an exception for certain adopted children. 1040 form 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. 1040 form 3There is an exception if the person is disabled and has income from a sheltered workshop. 1040 form 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. 1040 form Dependent not allowed a personal exemption. 1040 form If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. 1040 form This is true even if you do not claim the dependent's exemption on your return. 1040 form It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. 1040 form Housekeepers, maids, or servants. 1040 form   If these people work for you, you cannot claim exemptions for them. 1040 form Child tax credit. 1040 form   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. 1040 form For more information, see chapter 34. 1040 form Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. 1040 form Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. 1040 form If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. 1040 form Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. 1040 form Exception. 1040 form   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. 1040 form Example 1—child files joint return. 1040 form You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 1040 form He earned $25,000 for the year. 1040 form The couple files a joint return. 1040 form You cannot take an exemption for your daughter. 1040 form Example 2—child files joint return only as claim for refund of withheld tax. 1040 form Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 1040 form Neither is required to file a tax return. 1040 form They do not have a child. 1040 form Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 1040 form The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. 1040 form You can claim exemptions for each of them if all the other tests to do so are met. 1040 form Example 3—child files joint return to claim American opportunity credit. 1040 form The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 1040 form He and his wife are not required to file a tax return. 1040 form However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 1040 form Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 1040 form The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. 1040 form Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. 1040 form S. 1040 form citizen, U. 1040 form S. 1040 form resident alien, U. 1040 form S. 1040 form national, or a resident of Canada or Mexico. 1040 form However, there is an exception for certain adopted children, as explained next. 1040 form Exception for adopted child. 1040 form   If you are a U. 1040 form S. 1040 form citizen or U. 1040 form S. 1040 form national who has legally adopted a child who is not a U. 1040 form S. 1040 form citizen, U. 1040 form S. 1040 form resident alien, or U. 1040 form S. 1040 form national, this test is met if the child lived with you as a member of your household all year. 1040 form This exception also applies if the child was lawfully placed with you for legal adoption. 1040 form Child's place of residence. 1040 form   Children usually are citizens or residents of the country of their parents. 1040 form   If you were a U. 1040 form S. 1040 form citizen when your child was born, the child may be a U. 1040 form S. 1040 form citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. 1040 form Foreign students' place of residence. 1040 form   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. 1040 form S. 1040 form residents and do not meet this test. 1040 form You cannot claim an exemption for them. 1040 form However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. 1040 form See Expenses Paid for Student Living With You in chapter 24. 1040 form U. 1040 form S. 1040 form national. 1040 form   A U. 1040 form S. 1040 form national is an individual who, although not a U. 1040 form S. 1040 form citizen, owes his or her allegiance to the United States. 1040 form U. 1040 form S. 1040 form nationals include American Samoans and Northern Mariana Islanders who chose to become U. 1040 form S. 1040 form nationals instead of U. 1040 form S. 1040 form citizens. 1040 form Qualifying Child Five tests must be met for a child to be your qualifying child. 1040 form The five tests are: Relationship, Age, Residency, Support, and Joint return. 1040 form These tests are explained next. 1040 form If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. 1040 form See Special Rule for Qualifying Child of More Than One Person, later. 1040 form Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. 1040 form Adopted child. 1040 form   An adopted child is always treated as your own child. 1040 form The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 1040 form Foster child. 1040 form   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040 form Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. 1040 form Example. 1040 form Your son turned 19 on December 10. 1040 form Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. 1040 form Child must be younger than you or spouse. 1040 form   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. 1040 form However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. 1040 form Example 1—child not younger than you or spouse. 1040 form Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. 1040 form He is not disabled. 1040 form Both you and your spouse are 21 years old, and you file a joint return. 1040 form Your brother is not your qualifying child because he is not younger than you or your spouse. 1040 form Example 2—child younger than your spouse but not younger than you. 1040 form The facts are the same as in Example 1 except your spouse is 25 years old. 1040 form Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. 1040 form Student defined. 1040 form   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. 1040 form The 5 calendar months do not have to be consecutive. 1040 form Full-time student. 1040 form   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. 1040 form School defined. 1040 form   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. 1040 form However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. 1040 form Vocational high school students. 1040 form   Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. 1040 form Permanently and totally disabled. 1040 form   Your child is permanently and totally disabled if both of the following apply. 1040 form He or she cannot engage in any substantial gainful activity because of a physical or mental condition. 1040 form A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. 1040 form Residency Test To meet this test, your child must have lived with you for more than half the year. 1040 form There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. 1040 form Temporary absences. 1040 form   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 1040 form Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. 1040 form Death or birth of child. 1040 form   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. 1040 form Child born alive. 1040 form   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. 1040 form State or local law must treat the child as having been born alive. 1040 form There must be proof of a live birth shown by an official document, such as a birth certificate. 1040 form The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. 1040 form Stillborn child. 1040 form   You cannot claim an exemption for a stillborn child. 1040 form Kidnapped child. 1040 form   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. 1040 form See Publication 501 for details. 1040 form Children of divorced or separated parents (or parents who live apart). 1040 form   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. 1040 form However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. 1040 form The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. 1040 form The child received over half of his or her support for the year from the parents. 1040 form The child is in the custody of one or both parents for more than half of the year. 1040 form Either of the following statements is true. 1040 form The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. 1040 form (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. 1040 form If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. 1040 form ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. 1040 form Custodial parent and noncustodial parent. 1040 form   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. 1040 form The other parent is the noncustodial parent. 1040 form   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. 1040 form   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). 1040 form Equal number of nights. 1040 form   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). 1040 form December 31. 1040 form   The night of December 31 is treated as part of the year in which it begins. 1040 form For example, December 31, 2013, is treated as part of 2013. 1040 form Emancipated child. 1040 form   If a child is emancipated under state law, the child is treated as not living with either parent. 1040 form See Examples 5 and 6. 1040 form Absences. 1040 form   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. 1040 form But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. 1040 form Parent works at night. 1040 form   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. 1040 form On a school day, the child is treated as living at the primary residence registered with the school. 1040 form Example 1—child lived with one parent for a greater number of nights. 1040 form You and your child’s other parent are divorced. 1040 form In 2013, your child lived with you 210 nights and with the other parent 155 nights. 1040 form You are the custodial parent. 1040 form Example 2—child is away at camp. 1040 form In 2013, your daughter lives with each parent for alternate weeks. 1040 form In the summer, she spends 6 weeks at summer camp. 1040 form During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. 1040 form Example 3—child lived same number of nights with each parent. 1040 form Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. 1040 form Your AGI is $40,000. 1040 form Your ex-spouse's AGI is $25,000. 1040 form You are treated as your son's custodial parent because you have the higher AGI. 1040 form Example 4—child is at parent’s home but with other parent. 1040 form Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. 1040 form You become ill and are hospitalized. 1040 form The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. 1040 form Your son is treated as living with you during this 10-day period because he was living in your home. 1040 form Example 5—child emancipated in May. 1040 form When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. 1040 form As a result, he is not considered in the custody of his parents for more than half of the year. 1040 form The special rule for children of divorced or separated parents does not apply. 1040 form Example 6—child emancipated in August. 1040 form Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. 1040 form She turns 18 and is emancipated under state law on August 1, 2013. 1040 form Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. 1040 form You are the custodial parent. 1040 form Written declaration. 1040 form    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. 1040 form The noncustodial parent must attach a copy of the form or statement to his or her tax return. 1040 form   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. 1040 form Post-1984 and pre-2009 divorce decree or separation agreement. 1040 form   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. 1040 form The decree or agreement must state all three of the following. 1040 form The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. 1040 form The custodial parent will not claim the child as a dependent for the year. 1040 form The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. 1040 form   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. 1040 form The cover page (write the other parent's social security number on this page). 1040 form The pages that include all of the information identified in items (1) through (3) above. 1040 form The signature page with the other parent's signature and the date of the agreement. 1040 form Post-2008 divorce decree or separation agreement. 1040 form   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. 1040 form The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. 1040 form The form or statement must release the custodial parent's claim to the child without any conditions. 1040 form For example, the release must not depend on the noncustodial parent paying support. 1040 form    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. 1040 form Revocation of release of claim to an exemption. 1040 form   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). 1040 form For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. 1040 form The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. 1040 form Remarried parent. 1040 form   If you remarry, the support provided by your new spouse is treated as provided by you. 1040 form Parents who never married. 1040 form   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. 1040 form Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. 1040 form This test is different from the support test to be a qualifying relative, which is described later. 1040 form However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. 1040 form If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. 1040 form Worksheet 3-1. 1040 form Worksheet for Determining Support Funds Belonging to the Person You Supported       1. 1040 form Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. 1040 form Do not include funds provided by the state; include those amounts on line 23 instead 1. 1040 form     2. 1040 form Enter the amount on line 1 that was used for the person's support 2. 1040 form     3. 1040 form Enter the amount on line 1 that was used for other purposes 3. 1040 form     4. 1040 form Enter the total amount in the person's savings and other accounts at the end of the year 4. 1040 form     5. 1040 form Add lines 2 through 4. 1040 form (This amount should equal line 1. 1040 form ) 5. 1040 form     Expenses for Entire Household (where the person you supported lived)       6. 1040 form Lodging (complete line 6a or 6b):         a. 1040 form Enter the total rent paid 6a. 1040 form       b. 1040 form Enter the fair rental value of the home. 1040 form If the person you supported owned the home,  also include this amount in line 21 6b. 1040 form     7. 1040 form Enter the total food expenses 7. 1040 form     8. 1040 form Enter the total amount of utilities (heat, light, water, etc. 1040 form not included in line 6a or 6b) 8. 1040 form     9. 1040 form Enter the total amount of repairs (not included in line 6a or 6b) 9. 1040 form     10. 1040 form Enter the total of other expenses. 1040 form Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. 1040 form     11. 1040 form Add lines 6a through 10. 1040 form These are the total household expenses 11. 1040 form     12. 1040 form Enter total number of persons who lived in the household 12. 1040 form     Expenses for the Person You Supported       13. 1040 form Divide line 11 by line 12. 1040 form This is the person's share of the household expenses 13. 1040 form     14. 1040 form Enter the person's total clothing expenses 14. 1040 form     15. 1040 form Enter the person's total education expenses 15. 1040 form     16. 1040 form Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. 1040 form     17. 1040 form Enter the person's total travel and recreation expenses 17. 1040 form     18. 1040 form Enter the total of the person's other expenses 18. 1040 form     19. 1040 form Add lines 13 through 18. 1040 form This is the total cost of the person's support for the year 19. 1040 form     Did the Person Provide More Than Half of His or Her Own Support?       20. 1040 form Multiply line 19 by 50% (. 1040 form 50) 20. 1040 form     21. 1040 form Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. 1040 form This is the amount the person provided for his or her own support 21. 1040 form     22. 1040 form Is line 21 more than line 20?   No. 1040 form You meet the support test for this person to be your qualifying child. 1040 form If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. 1040 form Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. 1040 form    Yes. 1040 form You do not meet the support test for this person to be either your qualifying child or your qualifying relative. 1040 form Stop here. 1040 form        Did You Provide More Than Half?       23. 1040 form Enter the amount others provided for the person's support. 1040 form Include amounts provided by state, local, and other welfare societies or agencies. 1040 form Do not include any amounts included on line 1 23. 1040 form     24. 1040 form Add lines 21 and 23 24. 1040 form     25. 1040 form Subtract line 24 from line 19. 1040 form This is the amount you provided for the person's support 25. 1040 form     26. 1040 form Is line 25 more than line 20?   Yes. 1040 form You meet the support test for this person to be your qualifying relative. 1040 form    No. 1040 form You do not meet the support test for this person to be your qualifying relative. 1040 form You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. 1040 form See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. 1040 form   Example. 1040 form You provided $4,000 toward your 16-year-old son's support for the year. 1040 form He has a part-time job and provided $6,000 to his own support. 1040 form He provided more than half of his own support for the year. 1040 form He is not your qualifying child. 1040 form Foster care payments and expenses. 1040 form   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. 1040 form Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. 1040 form   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. 1040 form For more information about the deduction for charitable contributions, see chapter 24. 1040 form If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. 1040 form   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. 1040 form Example 1. 1040 form Lauren, a foster child, lived with Mr. 1040 form and Mrs. 1040 form Smith for the last 3 months of the year. 1040 form The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). 1040 form They did not care for her as a trade or business or to benefit the agency that placed her in their home. 1040 form The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. 1040 form Example 2. 1040 form You provided $3,000 toward your 10-year-old foster child's support for the year. 1040 form The state government provided $4,000, which is considered support provided by the state, not by the child. 1040 form See Support provided by the state (welfare, food stamps, housing, etc. 1040 form ) , later. 1040 form Your foster child did not provide more than half of her own support for the year. 1040 form Scholarships. 1040 form   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. 1040 form Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. 1040 form Exception. 1040 form   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. 1040 form Example 1—child files joint return. 1040 form You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 1040 form He earned $25,000 for the year. 1040 form The couple files a joint return. 1040 form Because your daughter and her husband file a joint return, she is not your qualifying child. 1040 form Example 2—child files joint return only as a claim for refund of withheld tax. 1040 form Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 1040 form Neither is required to file a tax return. 1040 form They do not have a child. 1040 form Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 1040 form The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. 1040 form Example 3—child files joint return to claim American opportunity credit. 1040 form The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 1040 form He and his wife were not required to file a tax return. 1040 form However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 1040 form Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 1040 form The exception to the joint return test does not apply, so your son is not your qualifying child. 1040 form Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. 1040 form This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. 1040 form If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. 1040 form Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. 1040 form Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). 1040 form The exemption for the child. 1040 form The child tax credit. 1040 form Head of household filing status. 1040 form The credit for child and dependent care expenses. 1040 form The exclusion from income for dependent care benefits. 1040 form The earned income credit. 1040 form The other person cannot take any of these benefits based on this qualifying child. 1040 form In other words, you and the other person cannot agree to divide these benefits between you. 1040 form The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. 1040 form Tiebreaker rules. 1040 form   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. 1040 form If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. 1040 form If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. 1040 form If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. 1040 form If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. 1040 form If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. 1040 form If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. 1040 form If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. 1040 form See Example 6 . 1040 form   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. 1040 form Example 1—child lived with parent and grandparent. 1040 form You and your 3-year-old daughter Jane lived with your mother all year. 1040 form You are 25 years old, unmarried, and your AGI is $9,000. 1040 form Your mother's AGI is $15,000. 1040 form Jane's father did not live with you or your daughter. 1040 form You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. 1040 form Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 1040 form However, only one of you can claim her. 1040 form Jane is not a qualifying child of anyone else, including her father. 1040 form You agree to let your mother claim Jane. 1040 form This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). 1040 form Example 2—parent has higher AGI than grandparent. 1040 form The facts are the same as in Example 1 except your AGI is $18,000. 1040 form Because your mother's AGI is not higher than yours, she cannot claim Jane. 1040 form Only you can claim Jane. 1040 form Example 3—two persons claim same child. 1040 form The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. 1040 form In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. 1040 form The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. 1040 form Example 4—qualifying children split between two persons. 1040 form The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. 1040 form Only one of you can claim each child. 1040 form However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. 1040 form For example, if you claim one child, your mother can claim the other two. 1040 form Example 5—taxpayer who is a qualifying child. 1040 form The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. 1040 form This means you are your mother's qualifying child. 1040 form If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. 1040 form Example 6—child lived with both parents and grandparent. 1040 form The facts are the same as in Example 1 except you are married to your daughter's father. 1040 form The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. 1040 form If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. 1040 form Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. 1040 form Example 7—separated parents. 1040 form You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. 1040 form In August and September, your son lived with you. 1040 form For the rest of the year, your son lived with your husband, the boy's father. 1040 form Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. 1040 form At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents (or parents who live apart) does not apply. 1040 form You and your husband will file separate returns. 1040 form Your husband agrees to let you treat your son as a qualifying child. 1040 form This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). 1040 form However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. 1040 form As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. 1040 form Example 8—separated parents claim same child. 1040 form The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. 1040 form In this case, only your husband will be allowed to treat your son as a qualifying child. 1040 form This is because, during 2013, the boy lived with him longer than with you. 1040 form If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 1040 form If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. 1040 form In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. 1040 form As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. 1040 form Example 9—unmarried parents. 1040 form You, your 5-year-old son, and your son's father lived together all year. 1040 form You and your son's father are not married. 1040 form Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. 1040 form Your AGI is $12,000 and your son's father's AGI is $14,000. 1040 form Your son's father agrees to let you claim the child as a qualifying child. 1040 form This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). 1040 form Example 10—unmarried parents claim same child. 1040 form The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. 1040 form In this case, only your son's father will be allowed to treat your son as a qualifying child. 1040 form This is because his AGI, $14,000, is more than your AGI, $12,000. 1040 form If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 1040 form If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. 1040 form Example 11—child did not live with a parent. 1040 form You and your 7-year-old niece, your sister's child, lived with your mother all year. 1040 form You are 25 years old, and your AGI is $9,300. 1040 form Your mother's AGI is $15,000. 1040 form Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. 1040 form Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 1040 form However, only your mother can treat her as a qualifying child. 1040 form This is because your mother's AGI, $15,000, is more than your AGI, $9,300. 1040 form Applying this special rule to divorced or separated parents (or parents who live apart). 1040 form   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. 1040 form However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. 1040 form If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. 1040 form Example 1. 1040 form You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. 1040 form Your AGI is $10,000. 1040 form Your mother's AGI is $25,000. 1040 form Your son's father did not live with you or your son. 1040 form Under the rules explained earlier for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for him. 1040 form Because of this, you cannot claim an exemption or the child tax credit for your son. 1040 form However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. 1040 form You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. 1040 form But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. 1040 form (Note: The support test does not apply for the earned income credit. 1040 form ) However, you agree to let your mother claim your son. 1040 form This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. 1040 form (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. 1040 form ) Example 2. 1040 form The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. 1040 form Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. 1040 form Example 3. 1040 form The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. 1040 form Your mother also claims him as a qualifying child for head of household filing status. 1040 form You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. 1040 form The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. 1040 form Qualifying Relative Four tests must be met for a person to be your qualifying relative. 1040 form The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. 1040 form Age. 1040 form   Unlike a qualifying child, a qualifying relative can be any age. 1040 form There is no age test for a qualifying relative. 1040 form Kidnapped child. 1040 form   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. 1040 form See Publication 501 for details. 1040 form Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. 1040 form Example 1. 1040 form Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. 1040 form She is not your qualifying relative. 1040 form Example 2. 1040 form Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. 1040 form He is not your qualifying relative. 1040 form Example 3. 1040 form Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. 1040 form He may be your qualifying relative if the gross income test and the support test are met. 1040 form Example 4. 1040 form Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. 1040 form He is not your qualifying child because he does not meet the residency test. 1040 form He may be your qualifying relative if the gross income test and the support test are met. 1040 form Child of person not required to file a return. 1040 form   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. 1040 form Example 1—return not required. 1040 form You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. 1040 form Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. 1040 form Both your friend and her child are your qualifying relatives if the support test is met. 1040 form Example 2—return filed to claim refund. 1040 form The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. 1040 form She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. 1040 form Both your friend and her child are your qualifying relatives if the support test is met. 1040 form Example 3—earned income credit claimed. 1040 form The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. 1040 form Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. 1040 form Child in Canada or Mexico. 1040 form   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. 1040 form If the child does not live with you, the child does not meet the residency test to be your qualifying child. 1040 form However, the child may still be your qualifying relative. 1040 form If the persons the child does live with are not U. 1040 form S. 1040 form citizens and have no U. 1040 form S. 1040 form gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. 1040 form If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. 1040 form   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. 1040 form S. 1040 form citizen, U. 1040 form S. 1040 form resident alien, or U. 1040 form S. 1040 form national. 1040 form There is an exception for certain adopted children who lived with you all year. 1040 form See Citizen or Resident Test , earlier. 1040 form Example. 1040 form You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. 1040 form You are single and live in the United States. 1040 form Your mother is not a U. 1040 form S. 1040 form citizen and has no U. 1040 form S. 1040 form income, so she is not a “taxpayer. 1040 form ” Your children are not your qualifying children because they do not meet the residency test. 1040 form But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. 1040 form You may also be able to claim your mother as a dependent if the gross income and support tests are met. 1040 form Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . 1040 form If at any time during the year the person was your spouse, that person cannot be your qualifying relative. 1040 form However, see Personal Exemptions , earlier. 1040 form Relatives who do not have to live with you. 1040 form   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. 1040 form Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). 1040 form (A legally adopted child is considered your child. 1040 form ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. 1040 form Your father, mother, grandparent, or other direct ancestor, but not foster parent. 1040 form Your stepfather or stepmother. 1040 form A son or daughter of your brother or sister. 1040 form A son or daughter of your half brother or half sister. 1040 form A brother or sister of your father or mother. 1040 form Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 1040 form Any of these relationships that were established by marriage are not ended by death or divorce. 1040 form Example. 1040 form You and your wife began supporting your wife's father, a widower, in 2006. 1040 form Your wife died in 2012. 1040 form Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. 1040 form You can claim him as a dependent if all other tests are met, including the gross income test and support test. 1040 form Foster child. 1040 form   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040 form Joint return. 1040 form   If you file a joint return, the person can be related to either you or your spouse. 1040 form Also, the person does not need to be related to the spouse who provides support. 1040 form   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. 1040 form However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. 1040 form Temporary absences. 1040 form   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 1040 form   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. 1040 form Death or birth. 1040 form   A person who died during the year, but lived with you as a member of your household until death, will meet this test. 1040 form The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. 1040 form The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. 1040 form   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. 1040 form Example. 1040 form Your dependent mother died on January 15. 1040 form She met the tests to be your qualifying relative. 1040 form The other tests to claim an exemption for a dependent were also met. 1040 form You can claim an exemption for her on your return. 1040 form Local law violated. 1040 form   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. 1040 form Example. 1040 form Your girlfriend lived with you as a member of your household all year. 1040 form However, your relationship with her violated the laws of the state where you live, because she was married to someone else. 1040 form Therefore, she does not meet this test and you cannot claim her as a dependent. 1040 form Adopted child. 1040 form   An adopted child is always treated as your own child. 1040 form The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 1040 form Cousin. 1040 form   Your cousin meets this test only if he or she lives with you all year as a member of your household. 1040 form A cousin is a descendant of a brother or sister of your father or mother. 1040 form Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. 1040 form Gross income defined. 1040 form   Gross income is all income in the form of money, property, and services that is not exempt from tax. 1040 form   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. 1040 form   Gross receipts from rental property are gross income. 1040 form Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. 1040 form   Gross income includes a partner's share of the gross (not a share of the net) partnership income. 1040 form    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. 1040 form Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. 1040 form For more information about scholarships, see chapter 12. 1040 form   Tax-exempt income, such as certain social security benefits, is not included in gross income. 1040 form Disabled dependent working at sheltered workshop. 1040 form   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. 1040 form The availability of medical care at the workshop must be the main reason for the individual's presence there. 1040 form Also, the income must come solely from activities at the workshop that are incident to this medical care. 1040 form   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. 1040 form S. 1040 form possession, a political subdivision of a state or possession, the United States, or the District of Columbia. 1040 form “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. 1040 form Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. 1040 form However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. 1040 form How to determine if support test is met. 1040 form   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. 1040 form This includes support the person provided from his or her own funds. 1040 form   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. 1040 form Person's own funds not used for support. 1040 form   A person's own funds are not support unless they are actually spent for support. 1040 form Example. 1040 form Your mother received $2,400 in social security benefits and $300 in interest. 1040 form She paid $2,000 for lodging and $400 for recreation. 1040 form She put $300 in a savings account. 1040 form Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. 1040 form If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. 1040 form Child's wages used for own support. 1040 form   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. 1040 form Year support is provided. 1040 form   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. 1040 form   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. 1040 form Armed Forces dependency allotments. 1040 form   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. 1040 form If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. 1040 form Example. 1040 form You are in the Armed Forces. 1040 form You authorize an allotment for your widowed mother that she uses to support herself and her sister. 1040 form If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. 1040 form Tax-exempt military quarters allowances. 1040 form   These allowances are treated the same way as dependency allotments in figuring support. 1040 form The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. 1040 form Tax-exempt income. 1040 form   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. 1040 form Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. 1040 form Example 1. 1040 form You provide $4,000 toward your mother's support during the year. 1040 form She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. 1040 form She uses all these for her support. 1040 form You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). 1040 form Example 2. 1040 form Your niece takes out a student loan of $2,500 a