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Vita Tax Program

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Vita Tax Program

Vita tax program It is tax season again! Figuring out and filing your tax forms can be intimidating – but there is help. Vita tax program Here you will find answers, forms and more that will make your paperwork easier, faster and less stressful. Vita tax program The information below will help you determine your residency status, find the correct forms you need and give you other information you want to get started. Vita tax program
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The Vita Tax Program

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