Dependency Tax Exemptions - Have You Been Alive Long Enough to Claim?

Many Americans have a hard time applying dependents tax exemption rules for their dead relatives. A mother that has lost her child can claim dependency exemption as long as she is able to prove that no other person qualifies for an exemption in the family. A person, therefore, needs to make sure that he/she qualifies for an exemption before deciding who will claim that exemption and avoid confusion as regards to dependent exemption guidelines and being alive for purposes of taxation.

The Internal Revenue Service (IRS) has clear set guidelines on this issue regarding both newly born children who later die within the year, as well as guidelines for personal tax exemptions for adults who die during the year. This is meant to clear the widespread confusion over the issue among most Americans.

According to the Internal Revenue Service, through their Publication 17:

A child born, and who passed within the year, is looked at as having lived with someone for the entire year if the child lived in that person's home for the entire time he/she was alive. The same applies if the child lived with that particular person for the entire year except for periods spent in the hospital after birth.

The IRS dependents exemption rules on dependency exemptions need to be reviewed keenly and followed to the letter if one is to benefit from this kind of exemption. If the child were to die moments after birth, the parents can claim dependency exemption if they meet all the conditions required for exemption. The main issue is that the child has to be a live birth but not necessarily have a long life. For a child that died in the course of the year, dependency claims can be sought for the entire year. This has been quite a reprieve for many parents.

This style of "all or nothing" exemption also applies to adults. An adult has a personal exemption for an entire year even if they died on the first day of the year. This exemption can be applied to a person's final return, regardless of his/her marital status; whether single, separated, or divorced.

To trigger a personal or dependent exemption for a particular year, one just needs to be alive, regardless of how long, and the exemption will apply. Individuals can seek guidelines from tax experts in order to know which situations qualify for dependency exemptions and other types of exemptions.

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Created on May 24th 2020 00:43. Viewed 233 times.

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