List of Tax Exemptions I Can Claim

Federal income tax exemptions reduce your taxable income for the year and are divided into two categories: personal exemptions and exemptions for dependents. Each tax exemption is worth $3,700 for Tax Year 2011. Different rules apply to each type of deduction.

How Many Tax Exemptions Can I Claim?

Generally, you can claim one personal tax exemption for yourself, one exemption for your spouse if you are married, and one for each dependent if you have children. However, if another taxpayer claims you as a dependent, or is entitled to claim you as a dependent, you are not eligible for a personal tax exemption.

The following table shows the tax exemption effect on your gross income:

2011 Federal Income Tax Exemption Table

Personal Tax Exemptions

You may generally claim one tax exemption for yourself if you are a single taxpayer.

If you are married and file a joint return, you may claim one tax exemption for yourself and one for your spouse. If you file a separate return, you are only able to claim a tax exemption for your spouse if your spouse is not filing a tax return, has no gross income, and was not claimed as the dependent of another taxpayer. If your spouse dies during the tax year, you are generally still allowed to claim a tax exemption for them for the year.

You must be married on the last day of the tax year to claim a tax exemption for your spouse on your tax return, and if you obtain a final divorce or separation decree by December 31st, you may not claim a federal tax exemption for your (ex-)spouse.

Tax Exemptions for Dependents

You may claim a tax exemption for each dependent as long as certain rules are satisfied:

• You or your spouse cannot be claimed as a dependent on another person's tax return (your spouse is never considered your dependent).
• The potential dependent cannot be married and filing jointly, unless the joint return is only a claim for a refund and there would be no taxes owed by either spouse if their returns were filed separately.
• The potential dependent must be a United States citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico (unless the dependent is a legally adopted child).
• The potential dependent must pass all tests (listed below) to be your qualifying child or qualifying relative.

Qualifying Child

A person may qualify as a dependent if they are a qualifying child or qualifying relative. There are six tests that an individual must pass in order to be considered a qualifying child for a tax exemption:

1. Relationship Test: The child must be your daughter, son, stepchild, foster child, sister, brother, half sister, half brother, stepsister, stepbrother, or a descendant of any of these. A child whom you legally adopt is always considered to be your child.
2. Age Test: The child must be one of the following: 1) under the age of 19 at the end of the year and younger than you or your spouse (if filing jointly); 2) a full-time student under the age of 24 at the end of the year and younger than you or your spouse (if filing jointly); or 3) permanently disabled at any time during the year, regardless of his or her age.
3. Support Test: The child must have not provided more than half of his or her own support for the year.
4. Residency Test: The child must have lived with you for more than half of the year.
5. Joint Return Test: The child must not file a joint tax return for the year (if he or she is married).
6. Special Test for Qualifying Child of More than One Person: If the child could be a qualifying child for more than one person, you must be the person who is entitled to claim the child (see below).

If the child was a full-time student please learn more here about the dependents status of a full time student child.

If your child was born on or before December 31st and all of the qualifying child tests are passed, then you may claim the child for a dependency tax exemption on your tax return.

Qualifying Relative

You may also add exemptions for dependents who are qualifying relatives. An eligible qualifying relative must pass the following four tests:

1. Not a Qualifying Child Test: The qualifying relative cannot be your qualifying child and cannot be claimed as a qualifying child on another person's tax return.
2. Relationship Test: The qualifying relative must either have lived with you for the entire year as a member of the household (a person who is not actually related to you may meet the requirements in this way), or be related to you in one of the following ways: your child, stepchild, grandchild or other descendant of one of your children (or stepchildren or foster children), son-in-law, daughter-in-law, brother, sister, half brother, half sister, stepbrother, stepsister, brother-in-law, sister-in-law, parent, stepfather, stepmother, father-in-law, mother-in-law, grandparent, and, if related by blood, aunt, uncle, niece, or nephew. Remember that a child whom you legally adopted is always considered to be your child. Also note that, for the purposes of this test, divorce or death does not change any relationship which was established by marriage (e.g. son-in-law, daughter-in-law, etc.)
3. Gross Income Test: The qualifying relative must have made less than $3,700 in gross income during the year.
4. Support Test: You must have provided more than half of the qualifying relative's total support during the year.

For more information on exemptions, dependents, qualifying children, and qualifying relatives, please consult Publication 501 - Tax Exemptions, Standard Deduction, and Filing Information.

What if Two or More People Claim the Same Dependent or Qualifying Child?

Only one taxpayer (or married couple filing jointly) may claim any one dependent. If two or more tax returns claim the same dependent or qualifying child, the IRS will apply a tiebreaker test to determine who has the legitimate claim.

Find out more about the tiebreaker rules for more than one person claiming  a dependent.

Reductions of Tax Exemptions - Tax Exemption Phaseouts

There is no income-based phaseout, or limitation, on exemptions for Tax Year 2011. Under current law, the tax exemption phaseout is not scheduled to return until Tax Year 2013.

 

For more information on tax exemptions, please refer to Publication 501 - Tax Exemptions, Standard Deduction, and Filing Information.

See what tax deductions you may qualify for.

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