Taking dependency exemptions for young children is usually a piece of cake. But things can get dicey when you’re claiming write-offs for the older generation.
Strategy: Go the extra yard. This may mean chipping in more support for a single filer or dividing the spoils for joint filers. In some cases, it could involve a family tax trade-off.
Here’s the whole story: Besides the usual personal exemptions, you’re entitled to claim an extra exemption for each dependent. For 2015, the exemption is $4,000 (up from $3,950 in 2014) if you meet all of these requirements:
- You’re not a dependent of another taxpayer.
- The individual being claimed as a dependent can’t file a joint tax return (with limited exceptions).
- The individual being claimed as a dependent is a citizen, national or resident alien of the United States or a resident of Canada or Mexico.
- The individual being claimed as a dependent meets the definition of a qualifying c...(register to read more)