dependents. Again, you have to deal with the terms qualifying
child and qualifying relative and pass the different tests for
these. There are preliminary items of which you must be aware.
First, you cannot claim any dependents if you, or your spouse
when filing jointly, could be claim as a dependent on someone
else's tax return. Second, you cannot claim a married individual
who files a joint tax return as a dependent unless that joint
tax return is filed only to claim for a refund and usually this
is a refund only of taxes withheld from your paying sources.
Third, you cannot claim a person as a dependent unless this
person is either a United States citizen, United States resident
alien, United States national, or a resident of Canada or
Mexico. Finally, as previously stated, you cannot claim a person
as a dependent unless that person is either your qualifying
child or your qualifying relative. If you don't pass either of
the five tests for a qualifying child or the four tests for a
qualifying relative, you will not be able to claim an exemption
for the dependent and consequently that will disqualify to use
the head of household filing status.
Different rules and exemptions can apply for
claiming an exemption for certain adopted children. Likewise,
there are exceptions for temporary absences, children who are
born or died during the year, children of divorced or parent who
lived apart or who are legally separated. When taking the rules
and tests for claiming exemptions are also exceptions for
children who have been kidnapped. The exception for kidnapped
children cannot be used if the person who kidnapped the child is
related to the child. Look into all the exceptions when
qualifying to claim an individual as a dependent. For example,
if the person is disabled and has income from a sheltered
workshop then this is would another exception.
When filing your return, you
must choose the appropriate filing status from the five filing
statuses available for 1040A and 1040 users. (Users of Form
1040EZ must file as single or as married filing jointly, with no
dependents.) You select a status by checking the appropriate box
directly below your name on page 1 of Form 1040 or Form 1040A,
where it says “Filing Status”. The five filing statuses are
single, married filing jointly, married filing separately, head
of household and qualifying widow with dependent child and they
are usually listed in that order on federal and state forms. If
you have a choice on which filing status to use, you would
choose the filing status that gives you the greater benefit
which is usually the lower tax and the higher credits and
deductions.
The standard deduction amount
depends on your filing status, whether you are 65 or older or
blind. You standard deduction also depends on whether someone
else can claim you as a dependent or not. Next year you will see
a different amount for your standard deduction due to inflation.
The standard deduction amounts will generally rise year after
year.
If you are filing as single
your standard deduction amount is $6,200 for tax year 2014.
If you are married and are using filing status as married filing
separately, your standard deduction is also $6,200. If you are
married and filing as married filing jointly or if your spouse
died and you are filing as qualifying widow or widower, then you
will get the highest standard deduction available. The standard
deduction amount for both the married filing jointly and the
qualifying widow (widower) with child filing status is $12,400.
If you qualify the head of household filing status, your
standard deduction amount that you can claim is $9,100 for tax
year 2014.
If you are born before January 2, 1950, or if
you are blind, your standard deduction increases for each
