Understanding Tax Exemptions and Dependents for Tax Purposes

By | January 27, 2015

Almost everyone can claim an exemption on your tax return. This usually reduces your taxable income and is one of the easiest “tax breaks” that are available to most people. In most cases reduces the amount of tax you owe for the year. Tax exemptions and dependents are closely related. It is essential to understand dependents in order to claim tax exemptions. Here are 10 facts tax exemptions to help you file your tax return in 2015.


Information about Tax Exemptions and Dependents

  1. E-file your tax return. Electronic filing is the easiest way to file a complete and accurate tax. The software used for e-file will help you determine the number of exemptions you can claim based on your dependents.There are many different e-file options available for taxpayers.
  2. Exemptions reduce income. There are two types of exemptions. The first type is a personal exemption. The second type is an exemption for a dependent. Generally, you can deduct $ 3,950 for each exemption you claim on your tax return for 2014.
  3. Personal exemptions.   Generally, you can claim an exemption for yourself. If you are married and file a joint return, you can claim your spouse as well. If you file a separate return, you can claim an exemption for your spouse if your spouse:
    • had no income,
    • It is not providing one tax return and
    • was not dependent of another taxpayer.
  1. Exemptions for dependents.   Normally you can claim an exemption for each of your dependents. A dependent is your child or relative who meets a series of tests. You can not claim your spouse as a dependent. You must include the social security number of each dependent you claim on your tax return. For more information about these rules, see Publication 501 , Exemptions, Standard Deduction, and Filing Information.
  2. Report your health coverage. The Health Care Act Affordable required to report certain information about your health insurance . The individual mandate requires that you and each member of your family:
    • have a qualified health insurance, called minimum essential coverage
    • have an exemption from this requirement coverage or
    • have a shared responsibility payment when you file your 2014 tax return.Visit IRS.gov/ACA for more information on these rules.
  1. Some people do not qualify. Normally, you can not claim your spouse as dependent if married persons filing jointly with your spouse. There are some exceptions to this rule.
  2. Dependents may have to file.   A person claiming as a dependent may have to file your own tax return. This depends on such factors as the amount of your income, whether you are married or should certain taxes.
  3. Dependent can not claim exemptions in their statements. If you can claim a person as a dependent, that person may not claim a personal exemption on your own tax return. This is true even if you do not claim that person on your tax return. This rule applies because you can claim that person as a dependent.
  4. Removal of exemption. The $ 3,950 Per exemption is subject to income limits. This rule can reduce or eliminate the amount you can claim based on the amount of their income. See Publication 501 for details.
  5. Try this tool IRS online. Use the interactive tool assistant taxes  on IRS.gov to verify whether a person qualifies as your dependent.