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1040ez2012

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1040ez2012

1040ez2012 1. 1040ez2012   Bona Fide Residence Table of Contents Presence TestDays of Presence in the United States or Relevant Possession Significant Connection Tax HomeExceptions Closer ConnectionException for Year of Move Special Rules in the Year of a MoveYear of Moving to a Possession Year of Moving From a Possession Reporting a Change in Bona Fide ResidenceWho Must File Penalty for Not Filing Form 8898 In order to qualify for certain tax benefits (see chapter 3), you must be a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI for the entire tax year. 1040ez2012 Generally, you are a bona fide resident of one of these possessions (the relevant possession) if, during the tax year, you: Meet the presence test, Do not have a tax home outside the relevant possession, and Do not have a closer connection to the United States or to a foreign country than to the relevant possession. 1040ez2012 Special rule for members of the U. 1040ez2012 S. 1040ez2012 Armed Forces. 1040ez2012   If you are a member of the U. 1040ez2012 S. 1040ez2012 Armed Forces who qualified as a bona fide resident of the relevant possession in an earlier tax year, your absence from that possession during the current tax year in compliance with military orders will not affect your status as a bona fide resident. 1040ez2012 Likewise, being in a possession solely in compliance with military orders will not qualify you for bona fide residency. 1040ez2012 Also see the special income source rule for members of the U. 1040ez2012 S. 1040ez2012 Armed Forces in chapter 2, under Compensation for Labor or Personal Services . 1040ez2012 Special rule for civilian spouse of active duty member of the U. 1040ez2012 S. 1040ez2012 Armed Forces. 1040ez2012   If you are the civilian spouse of an active duty servicemember, under Military Spouses Residency Relief Act (MSRRA) you can choose to keep your prior residence or domicile for tax purposes (tax residence) when accompanying the servicemember spouse, who is relocating under military orders, to a new military duty station in one of the 50 states, the District of Columbia, or a U. 1040ez2012 S. 1040ez2012 possession. 1040ez2012 Before relocating, you and your spouse must have the same tax residence. 1040ez2012 If you are a civilian spouse and choose to keep your prior tax residence after such relocation, the source of income for services performed (for example, wages, salaries, tips, or self-employment) by you is considered to be (the jurisdiction of) the prior tax residence. 1040ez2012 As a result, the amount of income tax withholding (from Form(s) W-2, Wage and Tax Statement) that you are able to claim on your federal return, as well as the need to file a state or U. 1040ez2012 S. 1040ez2012 possession return, may be affected. 1040ez2012 For more information, consult with state, local, or U. 1040ez2012 S. 1040ez2012 possession tax authorities regarding your tax obligations under MSRRA. 1040ez2012 Presence Test If you are a U. 1040ez2012 S. 1040ez2012 citizen or resident alien, you will satisfy the presence test for the entire tax year if you meet one of the following conditions. 1040ez2012 You were present in the relevant possession for at least 183 days during the tax year. 1040ez2012 You were present in the relevant possession for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years. 1040ez2012 During each year of the 3-year period, you must be present in the relevant possession for at least 60 days. 1040ez2012 You were present in the United States for no more than 90 days during the tax year. 1040ez2012 You had earned income in the United States of no more than a total of $3,000 and were present for more days in the relevant possession than in the United States during the tax year. 1040ez2012 Earned income is pay for personal services performed, such as wages, salaries, or professional fees. 1040ez2012 You had no significant connection to the United States during the tax year. 1040ez2012 Special rule for nonresident aliens. 1040ez2012   Conditions (1) through (5) above do not apply to nonresident aliens of the United States. 1040ez2012 Instead, nonresident aliens must meet the substantial presence test discussed in chapter 1 of Publication 519. 1040ez2012 In that discussion, substitute the name of the possession for “United States” and “U. 1040ez2012 S. 1040ez2012 ” wherever they appear. 1040ez2012 Disregard the discussion in that chapter about a Closer Connection to a Foreign Country. 1040ez2012 Days of Presence in the United States or Relevant Possession Generally, you are treated as being present in the United States or in the relevant possession on any day that you are physically present in that location at any time during the day. 1040ez2012 Days of presence in a possession. 1040ez2012   You are considered to be present in the relevant possession on any of the following days. 1040ez2012 Any day you are physically present in that possession at any time during the day. 1040ez2012 Any day you are outside of the relevant possession in order to receive, or to accompany any of the following family members to receive, qualifying medical treatment (see Qualifying Medical Treatment , later). 1040ez2012 Your parent. 1040ez2012 Your spouse. 1040ez2012 Your child, who is your son, daughter, stepson, or stepdaughter. 1040ez2012 This includes an adopted child or child lawfully placed with you for legal adoption. 1040ez2012 This also includes a foster child who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040ez2012 Any day you are outside the relevant possession because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. 1040ez2012   If, during a single day, you are physically present: In the United States and in the relevant possession, that day is considered a day of presence in the relevant possession; or In two possessions, that day is considered a day of presence in the possession where your tax home is located (see Tax Home , later). 1040ez2012 Days of presence in the United States. 1040ez2012   You are considered to be present in the United States on any day that you are physically present in the United States at any time during the day. 1040ez2012 However, do not count the following days as days of presence in the United States. 1040ez2012 Any day you are temporarily present in the United States in order to receive, or to accompany a parent, spouse, or child who is receiving, qualifying medical treatment. 1040ez2012 “Child” is defined under item 2c earlier. 1040ez2012 “Qualifying medical treatment” is defined later. 1040ez2012 Any day you are temporarily present in the United States because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. 1040ez2012 Any day you are in the United States for less than 24 hours when you are traveling between two places outside the United States. 1040ez2012 Any day you are temporarily present in the United States as a professional athlete to compete in a charitable sports event (defined later). 1040ez2012 Any day you are temporarily in the United States as a student (defined later). 1040ez2012 Any day you are in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). 1040ez2012 Qualifying Medical Treatment Such treatment is generally provided by (or under the supervision of) a physician for an illness, injury, impairment, or physical or mental condition. 1040ez2012 The treatment generally involves: Any period of inpatient care that requires an overnight stay in a hospital or hospice, and any period immediately before or after that inpatient care to the extent it is medically necessary, or Any temporary period of inpatient care in a residential medical care facility for medically necessary rehabilitation services. 1040ez2012 With respect to each qualifying medical treatment, you must prepare (or obtain) and maintain documentation supporting your claim that such treatment meets the criteria to be considered days of presence in the relevant possession. 1040ez2012 You must be able to produce this documentation within 30 days if requested by the IRS or tax administrator for the relevant possession. 1040ez2012 You must keep the following documentation. 1040ez2012 Records that provide: The patient's name and relationship to you (if the medical treatment is provided to a person you accompany); The name and address of the hospital, hospice, or residential medical care facility where the medical treatment was provided; The name, address, and telephone number of the physician who provided the medical treatment; The date(s) on which the medical treatment was provided; and Receipt(s) of payment for the medical treatment. 1040ez2012 Signed certification by the providing or supervising physician that the medical treatment met the requirements for being qualified medical treatment, and setting forth: The patient's name, A reasonably detailed description of the medical treatment provided by (or under the supervision of) the physician, The dates on which the medical treatment was provided, and The medical facts that support the physician's certification and determination that the treatment was medically necessary. 1040ez2012 Charitable Sports Event A charitable sports event is one that meets all of the following conditions. 1040ez2012 The main purpose is to benefit a qualified charitable organization. 1040ez2012 The entire net proceeds go to charity. 1040ez2012 Volunteers perform substantially all the work. 1040ez2012 In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in the charitable sports event. 1040ez2012 You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. 1040ez2012 Student To qualify as a student, you must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by a school described in (1) above or by a state, county, or local government agency. 1040ez2012 The 5 calendar months do not have to be consecutive. 1040ez2012 Full-time student. 1040ez2012   A full-time student is a person who is enrolled for the number of hours or courses the school considers to be full-time attendance. 1040ez2012 However, school attendance exclusively at night is not considered full-time attendance. 1040ez2012 School. 1040ez2012   The term “school” includes elementary schools, middle schools, junior and senior high schools, colleges, universities, and technical, trade, and mechanical schools. 1040ez2012 It does not include on-the-job training courses, correspondence schools, and schools offering courses only through the Internet. 1040ez2012 Significant Connection One way in which you can meet the presence test is to have no significant connection to the United States during the tax year. 1040ez2012 This section looks at the factors that determine if a significant connection exists. 1040ez2012 You are treated as having a significant connection to the United States if you: Have a permanent home in the United States, Are currently registered to vote in any political subdivision of the United States, or Have a spouse or child (see item 2c under Days of presence in a possession , earlier) who is under age 18 whose main home is in the United States, other than: A child who is in the United States because he or she is the child of divorced or legally separated parents and is living with a custodial parent under a custodial decree or multiple support agreement, or A child who is in the United States as a student. 1040ez2012 For the purpose of determining if you have a significant connection to the United States, the term “spouse” does not include a spouse from whom you are legally separated under a decree of divorce or separate maintenance. 1040ez2012 Permanent home. 1040ez2012   A permanent home generally includes an accommodation such as a house, an apartment, or a furnished room that is either owned or rented by you or your spouse. 1040ez2012 The dwelling unit must be available at all times, continuously, not only for short stays. 1040ez2012 Exception for rental property. 1040ez2012   If you or your spouse own the dwelling unit and at any time during the tax year it is rented to someone else at fair rental value, it will be considered your permanent home only if you or your spouse use that property for personal purposes for more than the greater of: 14 days, or 10% of the number of days during that tax year that the property is rented to others at a fair rental value. 1040ez2012   You are treated as using rental property for personal purposes on any day the property is not being rented to someone else at fair rental value for the entire day. 1040ez2012   A day of personal use of a dwelling unit is also any day that the unit is used by any of the following persons. 1040ez2012 You or any other person who has an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement. 1040ez2012 A member of your family or a member of the family of any other person who has an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. 1040ez2012 Family includes only brothers and sisters, half-brothers and half-sisters, spouses, ancestors (parents, grandparents, etc. 1040ez2012 ), and lineal descendants (children, grandchildren, etc. 1040ez2012 ). 1040ez2012 Anyone under an arrangement that lets you use some other dwelling unit. 1040ez2012 Anyone at less than a fair rental price. 1040ez2012   However, any day you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. 1040ez2012 Whether your property is used mainly for this purpose is determined in light of all the facts and circumstances, such as: The amount of time you devote to repair and maintenance work, How often during the tax year you perform repair and maintenance work on this property, and The presence and activities of companions. 1040ez2012   See Publication 527, Residential Rental Property, for more information about personal use of a dwelling unit. 1040ez2012 Example—significant connection. 1040ez2012 Ann Green, a U. 1040ez2012 S. 1040ez2012 citizen, is a sales representative for a company based in Guam. 1040ez2012 Ann lives with her spouse and young children in their house in Guam, where she is also registered to vote. 1040ez2012 Her business travel requires her to spend 120 days in the United States and another 120 days in foreign countries. 1040ez2012 When traveling on business, Ann generally stays at hotels but sometimes stays with her brother, who lives in the United States. 1040ez2012 Ann's stays are always of short duration and she asks her brother's permission to stay with him. 1040ez2012 Her brother's house is not her permanent home, nor does she have any other accommodations in the United States that would be considered her permanent home. 1040ez2012 Ann satisfies the presence test because she has no significant connection to the United States. 1040ez2012 Example—presence test. 1040ez2012 Eric and Wanda Brown live for part of the year in a condominium, which they own, in the CNMI. 1040ez2012 They also own a house in Maine where they live for 120 days every year to be near their grown children and grandchildren. 1040ez2012 The Browns are retired and their only income is from pension payments, dividends, interest, and social security benefits. 1040ez2012 In 2013, they spent only 175 days in the CNMI because of a 70-day vacation to Europe and Asia. 1040ez2012 Thus, in 2013, the Browns were not present in the CNMI for at least 183 days, were present in the United States for more than 90 days, and had a significant connection to the United States because of their permanent home. 1040ez2012 However, the Browns still satisfied the presence test with respect to the CNMI because they had no earned income in the United States and were physically present for more days in the CNMI than in the United States. 1040ez2012 Tax Home You will have met the tax home test if you did not have a tax home outside the relevant possession during any part of the tax year. 1040ez2012 Your tax home is your regular or main place of business, employment, or post of duty regardless of where you maintain your family home. 1040ez2012 If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. 1040ez2012 If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 1040ez2012 Exceptions There are some special rules regarding tax home that provide exceptions to the general rule stated above. 1040ez2012 Students and Government Officials Disregard the following days when determining whether you have a tax home outside the relevant possession. 1040ez2012 Days you were temporarily in the United States as a student (see Student under Days of Presence in the United States or Relevant Possession, earlier). 1040ez2012 Days you were in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). 1040ez2012 Seafarers You will not be considered to have a tax home outside the relevant possession solely because you are employed on a ship or other seafaring vessel that is predominantly used in local and international waters. 1040ez2012 For this purpose, a vessel is considered to be predominantly used in local and international waters if, during the tax year, the total amount of time it is used in international waters and in the waters within 3 miles of the relevant possession exceeds the total amount of time it is used in the territorial waters of the United States, another possession, or any foreign country. 1040ez2012 Example. 1040ez2012 In 2013, Sean Silverman, a U. 1040ez2012 S. 1040ez2012 citizen, was employed by a fishery and spent 250 days at sea on a fishing vessel. 1040ez2012 When not at sea, Sean lived with his spouse at a house they own in American Samoa. 1040ez2012 The fishing vessel on which Sean works departs and arrives at various ports in American Samoa, other possessions, and foreign countries, but was in international or American Samoa's local waters for 225 days. 1040ez2012 For purposes of determining bona fide residency of American Samoa, Sean will not be considered to have a tax home outside that possession solely because of his employment on board the fishing vessel. 1040ez2012 Year of Move If you are moving to or from a possession during the year, you may still be able to meet the tax home test for that year. 1040ez2012 See Special Rules in the Year of a Move , later in this chapter. 1040ez2012 Closer Connection You will have met the closer connection test if, during any part of the tax year, you do not have a closer connection to the United States or a foreign country than to the relevant U. 1040ez2012 S. 1040ez2012 possession. 1040ez2012 You will be considered to have a closer connection to a possession than to the United States or to a foreign country if you have maintained more significant contacts with the possession(s) than with the United States or foreign country. 1040ez2012 In determining if you have maintained more significant contacts with the relevant possession, the facts and circumstances to be considered include, but are not limited to, the following. 1040ez2012 The location of your permanent home. 1040ez2012 The location of your family. 1040ez2012 The location of personal belongings, such as automobiles, furniture, clothing, and jewelry owned by you and your family. 1040ez2012 The location of social, political, cultural, professional, or religious organizations with which you have a current relationship. 1040ez2012 The location where you conduct your routine personal banking activities. 1040ez2012 The location where you conduct business activities (other than those that go into determining your tax home). 1040ez2012 The location of the jurisdiction in which you hold a driver's license. 1040ez2012 The location of the jurisdiction in which you vote. 1040ez2012 The location of charitable organizations to which you contribute. 1040ez2012 The country of residence you designate on forms and documents. 1040ez2012 The types of official forms and documents you file, such as Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form W-9, Request for Taxpayer Identification Number and Certification. 1040ez2012 Your connections to the relevant possession will be compared to the total of your connections with the United States and foreign countries. 1040ez2012 Your answers to the questions on Form 8898, Part III, will help establish the jurisdiction to which you have a closer connection. 1040ez2012 Example—closer connection to the United States. 1040ez2012 Marcos Reyes, a U. 1040ez2012 S. 1040ez2012 citizen, moved to Puerto Rico in 2013 to start an investment consulting and venture capital business. 1040ez2012 His spouse and two teenage children remained in California to allow the children to complete high school. 1040ez2012 He traveled back to the United States regularly to see his spouse and children, to engage in business activities, and to take vacations. 1040ez2012 Marcos had an apartment available for his full-time use in Puerto Rico, but remained a joint owner of the residence in California where his spouse and children lived. 1040ez2012 Marcos and his family had automobiles and personal belongings such as furniture, clothing, and jewelry located at both residences. 1040ez2012 Although Marcos was a member of the Puerto Rico Chamber of Commerce, he also belonged to and had current relationships with social, political, cultural, and religious organizations in California. 1040ez2012 Marcos received mail in California, including bank and brokerage statements and credit card bills. 1040ez2012 He conducted his personal banking activities in California. 1040ez2012 He held a California driver's license and was also registered to vote there. 1040ez2012 Based on all of the particular facts and circumstances pertaining to Marcos, he was not a bona fide resident of Puerto Rico in 2013 because he had a closer connection to the United States than to Puerto Rico. 1040ez2012 Closer connection to another possession. 1040ez2012   Generally, possessions are not treated as foreign countries. 1040ez2012 Therefore, a closer connection to a possession other than the relevant possession will not be treated as a closer connection to a foreign country. 1040ez2012 Example—tax home and closer connection to possession. 1040ez2012 Pearl Blackmon, a U. 1040ez2012 S. 1040ez2012 citizen, is a permanent employee of a hotel in Guam, but works only during the tourist season. 1040ez2012 For the remainder of each year, Pearl lives with her spouse and children in the CNMI, where she has no outside employment. 1040ez2012 Most of Pearl's personal belongings, including her automobile, are located in the CNMI. 1040ez2012 She is registered to vote in, and has a driver's license issued by, the CNMI. 1040ez2012 She does her personal banking in the CNMI and routinely lists her CNMI address as her permanent address on forms and documents. 1040ez2012 Pearl satisfies the presence test with respect to both Guam and the CNMI. 1040ez2012 She satisfies the tax home test with respect to Guam, because her regular place of business is in Guam. 1040ez2012 Pearl satisfies the closer connection test with respect to both Guam and the CNMI, because she does not have a closer connection to the United States or to any foreign country. 1040ez2012 Pearl is considered a bona fide resident of Guam, the location of her tax home. 1040ez2012 Exception for Year of Move If you are moving to or from a possession during the year, you may still be able to meet the closer connection test for that year. 1040ez2012 See Special Rules in the Year of a Move , next. 1040ez2012 Special Rules in the Year of a Move If you are moving to or from a possession during the year, you may still be able to meet the tax home and closer connection tests for that year. 1040ez2012 Year of Moving to a Possession You will satisfy the tax home and closer connection tests in the tax year of changing your residence to the relevant possession if you meet all of the following. 1040ez2012 You have not been a bona fide resident of the relevant possession in any of the 3 tax years immediately preceding your move. 1040ez2012 In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the last 183 days of the tax year. 1040ez2012 You are a bona fide resident of the relevant possession for each of the 3 tax years immediately following your move. 1040ez2012 Example. 1040ez2012 Dwight Wood, a U. 1040ez2012 S. 1040ez2012 citizen, files returns on a calendar year basis. 1040ez2012 He lived in the United States from January 2007 through May 2013. 1040ez2012 In June 2013 he moved to the USVI, purchased a house, and accepted a permanent job with a local employer. 1040ez2012 From July 1 through December 31, 2013 (more than 183 days), Dwight's principal place of business was in the USVI and, during that time, he did not have a closer connection to the United States or a foreign country than to the USVI. 1040ez2012 If he is a bona fide resident of the USVI during all of 2014 through 2016, he will satisfy the tax home and closer connection tests for 2013. 1040ez2012 If Dwight also satisfies the presence test in 2013, he will be considered a bona fide resident of the USVI for the entire 2013 tax year. 1040ez2012 Year of Moving From a Possession In the year you cease to be a bona fide resident of American Samoa, the CNMI, Guam, or the USVI, you will satisfy the tax home and closer connection tests with respect to the relevant possession if you meet all of the following. 1040ez2012 You have been a bona fide resident of the relevant possession for each of the 3 tax years immediately preceding your change of residence. 1040ez2012 In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the first 183 days of the tax year. 1040ez2012 You are not a bona fide resident of the relevant possession for any of the 3 tax years immediately following your move. 1040ez2012 Example. 1040ez2012 Jean Aspen, a U. 1040ez2012 S. 1040ez2012 citizen, files returns on a calendar year basis. 1040ez2012 From January 2010 through December 2012, Jean was a bona fide resident of American Samoa. 1040ez2012 Jean continued to live there until September 6, 2013, when she accepted new employment and moved to Hawaii. 1040ez2012 Jean's principal place of business from January 1 through September 5, 2013 (more than 183 days), was in American Samoa, and during that period Jean did not have a closer connection to the United States or a foreign country than to American Samoa. 1040ez2012 If Jean continues to live and work in Hawaii for the rest of 2013 and throughout years 2014 through 2016, she will satisfy the tax home and closer connection tests for 2013 with respect to American Samoa. 1040ez2012 If Jean also satisfies the presence test in 2013, she will be considered a bona fide resident for the entire 2013 tax year. 1040ez2012 Puerto Rico You will be considered a bona fide resident of Puerto Rico for the part of the tax year preceding the date on which you move if you: Are a U. 1040ez2012 S. 1040ez2012 citizen, Are a bona fide resident of Puerto Rico for at least 2 tax years immediately preceding the tax year of the move, Cease to be a bona fide resident of Puerto Rico during the tax year, Cease to have a tax home in Puerto Rico during the tax year, and Have a closer connection to Puerto Rico than to the United States or a foreign country throughout the part of the tax year preceding the date on which you cease to have a tax home in Puerto Rico. 1040ez2012 Example. 1040ez2012 Randy White, a U. 1040ez2012 S. 1040ez2012 citizen, files returns on a calendar year basis. 1040ez2012 For all of 2011 and 2012, Randy was a bona fide resident of Puerto Rico. 1040ez2012 From January through April 2013, Randy continued to reside and maintain his principal place of business in and closer connection to Puerto Rico. 1040ez2012 On May 5, 2013, Randy moved and changed his tax home to Nevada. 1040ez2012 Later that year he established a closer connection to the United States than to Puerto Rico. 1040ez2012 Randy did not satisfy the presence test for 2013 with respect to Puerto Rico, nor the tax home or closer connection tests. 1040ez2012 However, because Randy was a bona fide resident of Puerto Rico for at least 2 tax years before he moved to Nevada in 2013, he was a bona fide resident of Puerto Rico from January 1 through May 4, 2013. 1040ez2012 Reporting a Change in Bona Fide Residence If you became or ceased to be a bona fide resident of a U. 1040ez2012 S. 1040ez2012 possession, you may need to file Form 8898. 1040ez2012 This applies to the U. 1040ez2012 S. 1040ez2012 possessions of American Samoa, the CNMI, Guam, Puerto Rico, and the USVI. 1040ez2012 Who Must File You must file Form 8898 for the tax year in which you meet both of the following conditions. 1040ez2012 Your worldwide gross income (defined below) in that tax year is more than $75,000. 1040ez2012 You meet one of the following. 1040ez2012 You take a position for U. 1040ez2012 S. 1040ez2012 tax purposes that you became a bona fide resident of a U. 1040ez2012 S. 1040ez2012 possession after a tax year for which you filed a U. 1040ez2012 S. 1040ez2012 income tax return as a citizen or resident alien of the United States but not as a bona fide resident of the possession. 1040ez2012 You are a citizen or resident alien of the United States who takes the position for U. 1040ez2012 S. 1040ez2012 tax purposes that you ceased to be a bona fide resident of a U. 1040ez2012 S. 1040ez2012 possession after a tax year for which you filed an income tax return (with the IRS, the possession tax authority, or both) as a bona fide resident of the possession. 1040ez2012 You take the position for U. 1040ez2012 S. 1040ez2012 tax purposes that you became a bona fide resident of Puerto Rico or American Samoa after a tax year for which you were required to file an income tax return as a bona fide resident of the CNMI, Guam, or the USVI. 1040ez2012 Worldwide gross income. 1040ez2012   Worldwide gross income means all income you received in the form of money, goods, property, and services, including any income from sources outside the United States (even if you can exclude part or all of it) and before any deductions, credits, or rebates. 1040ez2012 Example. 1040ez2012 You are a U. 1040ez2012 S. 1040ez2012 citizen who moved to the CNMI in December 2012, but did not become a bona fide resident of that possession until the 2013 tax year. 1040ez2012 You must file Form 8898 for the 2013 tax year if your worldwide gross income for that year was more than $75,000. 1040ez2012 Penalty for Not Filing Form 8898 If you are required to file Form 8898 for any tax year and you fail to file it, you may owe a penalty of $1,000. 1040ez2012 You may also owe this penalty if you do not include all the information required by the form or the form includes incorrect information. 1040ez2012 In either case, you will not owe this penalty if you can show that such failure is due to reasonable cause and not willful neglect. 1040ez2012 This is in addition to any criminal penalty that may be imposed. 1040ez2012 Prev  Up  Next   Home   More Online Publications
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    The 1040ez2012

    1040ez2012 3. 1040ez2012   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. 1040ez2012 Taxpayer identification numbers for aliens. 1040ez2012 Taxpayer identification numbers for adoptees. 1040ez2012 What's New Exemption amount. 1040ez2012  The amount you can deduct for each exemption has increased. 1040ez2012 It was $3,800 for 2012. 1040ez2012 It is $3,900 for 2013. 1040ez2012 Exemption phaseout. 1040ez2012  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. 1040ez2012 For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). 1040ez2012 See Phaseout of Exemptions , later. 1040ez2012 Introduction This chapter discusses the following topics. 1040ez2012 Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. 1040ez2012 Exemptions for dependents — You generally can take an exemption for each of your dependents. 1040ez2012 A dependent is your qualifying child or qualifying relative. 1040ez2012 If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. 1040ez2012 Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. 1040ez2012 Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. 1040ez2012 Deduction. 1040ez2012   Exemptions reduce your taxable income. 1040ez2012 You can deduct $3,900 for each exemption you claim in 2013. 1040ez2012 But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. 1040ez2012 See Phaseout of Exemptions , later. 1040ez2012 How to claim exemptions. 1040ez2012    How you claim an exemption on your tax return depends on which form you file. 1040ez2012    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. 1040ez2012    If you file Form 1040A, complete lines 6a through 6d. 1040ez2012 The total number of exemptions you can claim is the total in the box on line 6d. 1040ez2012 Also complete line 26. 1040ez2012   If you file Form 1040, complete lines 6a through 6d. 1040ez2012 The total number of exemptions you can claim is the total in the box on line 6d. 1040ez2012 Also complete line 42. 1040ez2012 Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). 1040ez2012 While each is worth the same amount ($3,900 for 2013), different rules apply to each type. 1040ez2012 Personal Exemptions You are generally allowed one exemption for yourself. 1040ez2012 If you are married, you may be allowed one exemption for your spouse. 1040ez2012 These are called personal exemptions. 1040ez2012 Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. 1040ez2012 If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. 1040ez2012 Your Spouse's Exemption Your spouse is never considered your dependent. 1040ez2012 Joint return. 1040ez2012   On a joint return you can claim one exemption for yourself and one for your spouse. 1040ez2012 Separate return. 1040ez2012   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. 1040ez2012 This is true even if the other taxpayer does not actually claim your spouse as a dependent. 1040ez2012 You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. 1040ez2012 S. 1040ez2012 tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. 1040ez2012 Death of spouse. 1040ez2012   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . 1040ez2012 If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . 1040ez2012   If you remarried during the year, you cannot take an exemption for your deceased spouse. 1040ez2012   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. 1040ez2012 If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. 1040ez2012 Divorced or separated spouse. 1040ez2012   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. 1040ez2012 This rule applies even if you provided all of your former spouse's support. 1040ez2012 Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. 1040ez2012 You can claim an exemption for a dependent even if your dependent files a return. 1040ez2012 The term “dependent” means: A qualifying child, or A qualifying relative. 1040ez2012 The terms “ qualifying child ” and “ qualifying relative ” are defined later. 1040ez2012 You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. 1040ez2012 Dependent taxpayer test. 1040ez2012 Joint return test. 1040ez2012 Citizen or resident test. 1040ez2012 These three tests are explained in detail later. 1040ez2012 All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. 1040ez2012 Table 3-1. 1040ez2012 Overview of the Rules for Claiming an Exemption for a Dependent Caution. 1040ez2012 This table is only an overview of the rules. 1040ez2012 For details, see the rest of this chapter. 1040ez2012 You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. 1040ez2012   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. 1040ez2012   You cannot claim a person as a dependent unless that person is a U. 1040ez2012 S. 1040ez2012 citizen, U. 1040ez2012 S. 1040ez2012 resident alien, U. 1040ez2012 S. 1040ez2012 national, or a resident of Canada or Mexico. 1040ez2012 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. 1040ez2012   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. 1040ez2012   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. 1040ez2012   The child must have lived with you for more than half of the year. 1040ez2012 2  The child must not have provided more than half of his or her own support for the year. 1040ez2012   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). 1040ez2012  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. 1040ez2012 See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. 1040ez2012   The person cannot be your qualifying child or the qualifying child of any other taxpayer. 1040ez2012   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). 1040ez2012   The person's gross income for the year must be less than $3,900. 1040ez2012 3  You must provide more than half of the person's total support for the year. 1040ez2012 4  1There is an exception for certain adopted children. 1040ez2012 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. 1040ez2012 3There is an exception if the person is disabled and has income from a sheltered workshop. 1040ez2012 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. 1040ez2012 Dependent not allowed a personal exemption. 1040ez2012 If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. 1040ez2012 This is true even if you do not claim the dependent's exemption on your return. 1040ez2012 It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. 1040ez2012 Housekeepers, maids, or servants. 1040ez2012   If these people work for you, you cannot claim exemptions for them. 1040ez2012 Child tax credit. 1040ez2012   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. 1040ez2012 For more information, see chapter 34. 1040ez2012 Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. 1040ez2012 Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. 1040ez2012 If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. 1040ez2012 Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. 1040ez2012 Exception. 1040ez2012   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. 1040ez2012 Example 1—child files joint return. 1040ez2012 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 1040ez2012 He earned $25,000 for the year. 1040ez2012 The couple files a joint return. 1040ez2012 You cannot take an exemption for your daughter. 1040ez2012 Example 2—child files joint return only as claim for refund of withheld tax. 1040ez2012 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 1040ez2012 Neither is required to file a tax return. 1040ez2012 They do not have a child. 1040ez2012 Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 1040ez2012 The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. 1040ez2012 You can claim exemptions for each of them if all the other tests to do so are met. 1040ez2012 Example 3—child files joint return to claim American opportunity credit. 1040ez2012 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 1040ez2012 He and his wife are not required to file a tax return. 1040ez2012 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 1040ez2012 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 1040ez2012 The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. 1040ez2012 Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. 1040ez2012 S. 1040ez2012 citizen, U. 1040ez2012 S. 1040ez2012 resident alien, U. 1040ez2012 S. 1040ez2012 national, or a resident of Canada or Mexico. 1040ez2012 However, there is an exception for certain adopted children, as explained next. 1040ez2012 Exception for adopted child. 1040ez2012   If you are a U. 1040ez2012 S. 1040ez2012 citizen or U. 1040ez2012 S. 1040ez2012 national who has legally adopted a child who is not a U. 1040ez2012 S. 1040ez2012 citizen, U. 1040ez2012 S. 1040ez2012 resident alien, or U. 1040ez2012 S. 1040ez2012 national, this test is met if the child lived with you as a member of your household all year. 1040ez2012 This exception also applies if the child was lawfully placed with you for legal adoption. 1040ez2012 Child's place of residence. 1040ez2012   Children usually are citizens or residents of the country of their parents. 1040ez2012   If you were a U. 1040ez2012 S. 1040ez2012 citizen when your child was born, the child may be a U. 1040ez2012 S. 1040ez2012 citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. 1040ez2012 Foreign students' place of residence. 1040ez2012   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. 1040ez2012 S. 1040ez2012 residents and do not meet this test. 1040ez2012 You cannot claim an exemption for them. 1040ez2012 However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. 1040ez2012 See Expenses Paid for Student Living With You in chapter 24. 1040ez2012 U. 1040ez2012 S. 1040ez2012 national. 1040ez2012   A U. 1040ez2012 S. 1040ez2012 national is an individual who, although not a U. 1040ez2012 S. 1040ez2012 citizen, owes his or her allegiance to the United States. 1040ez2012 U. 1040ez2012 S. 1040ez2012 nationals include American Samoans and Northern Mariana Islanders who chose to become U. 1040ez2012 S. 1040ez2012 nationals instead of U. 1040ez2012 S. 1040ez2012 citizens. 1040ez2012 Qualifying Child Five tests must be met for a child to be your qualifying child. 1040ez2012 The five tests are: Relationship, Age, Residency, Support, and Joint return. 1040ez2012 These tests are explained next. 1040ez2012 If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. 1040ez2012 See Special Rule for Qualifying Child of More Than One Person, later. 1040ez2012 Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. 1040ez2012 Adopted child. 1040ez2012   An adopted child is always treated as your own child. 1040ez2012 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 1040ez2012 Foster child. 1040ez2012   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040ez2012 Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. 1040ez2012 Example. 1040ez2012 Your son turned 19 on December 10. 1040ez2012 Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. 1040ez2012 Child must be younger than you or spouse. 1040ez2012   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. 1040ez2012 However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. 1040ez2012 Example 1—child not younger than you or spouse. 1040ez2012 Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. 1040ez2012 He is not disabled. 1040ez2012 Both you and your spouse are 21 years old, and you file a joint return. 1040ez2012 Your brother is not your qualifying child because he is not younger than you or your spouse. 1040ez2012 Example 2—child younger than your spouse but not younger than you. 1040ez2012 The facts are the same as in Example 1 except your spouse is 25 years old. 1040ez2012 Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. 1040ez2012 Student defined. 1040ez2012   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. 1040ez2012 The 5 calendar months do not have to be consecutive. 1040ez2012 Full-time student. 1040ez2012   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. 1040ez2012 School defined. 1040ez2012   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. 1040ez2012 However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. 1040ez2012 Vocational high school students. 1040ez2012   Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. 1040ez2012 Permanently and totally disabled. 1040ez2012   Your child is permanently and totally disabled if both of the following apply. 1040ez2012 He or she cannot engage in any substantial gainful activity because of a physical or mental condition. 1040ez2012 A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. 1040ez2012 Residency Test To meet this test, your child must have lived with you for more than half the year. 1040ez2012 There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. 1040ez2012 Temporary absences. 1040ez2012   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 1040ez2012 Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. 1040ez2012 Death or birth of child. 1040ez2012   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. 1040ez2012 Child born alive. 1040ez2012   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. 1040ez2012 State or local law must treat the child as having been born alive. 1040ez2012 There must be proof of a live birth shown by an official document, such as a birth certificate. 1040ez2012 The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. 1040ez2012 Stillborn child. 1040ez2012   You cannot claim an exemption for a stillborn child. 1040ez2012 Kidnapped child. 1040ez2012   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. 1040ez2012 See Publication 501 for details. 1040ez2012 Children of divorced or separated parents (or parents who live apart). 1040ez2012   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. 1040ez2012 However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. 1040ez2012 The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. 1040ez2012 The child received over half of his or her support for the year from the parents. 1040ez2012 The child is in the custody of one or both parents for more than half of the year. 1040ez2012 Either of the following statements is true. 1040ez2012 The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. 1040ez2012 (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. 1040ez2012 If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. 1040ez2012 ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. 1040ez2012 Custodial parent and noncustodial parent. 1040ez2012   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. 1040ez2012 The other parent is the noncustodial parent. 1040ez2012   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. 1040ez2012   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). 1040ez2012 Equal number of nights. 1040ez2012   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). 1040ez2012 December 31. 1040ez2012   The night of December 31 is treated as part of the year in which it begins. 1040ez2012 For example, December 31, 2013, is treated as part of 2013. 1040ez2012 Emancipated child. 1040ez2012   If a child is emancipated under state law, the child is treated as not living with either parent. 1040ez2012 See Examples 5 and 6. 1040ez2012 Absences. 1040ez2012   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. 1040ez2012 But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. 1040ez2012 Parent works at night. 1040ez2012   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. 1040ez2012 On a school day, the child is treated as living at the primary residence registered with the school. 1040ez2012 Example 1—child lived with one parent for a greater number of nights. 1040ez2012 You and your child’s other parent are divorced. 1040ez2012 In 2013, your child lived with you 210 nights and with the other parent 155 nights. 1040ez2012 You are the custodial parent. 1040ez2012 Example 2—child is away at camp. 1040ez2012 In 2013, your daughter lives with each parent for alternate weeks. 1040ez2012 In the summer, she spends 6 weeks at summer camp. 1040ez2012 During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. 1040ez2012 Example 3—child lived same number of nights with each parent. 1040ez2012 Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. 1040ez2012 Your AGI is $40,000. 1040ez2012 Your ex-spouse's AGI is $25,000. 1040ez2012 You are treated as your son's custodial parent because you have the higher AGI. 1040ez2012 Example 4—child is at parent’s home but with other parent. 1040ez2012 Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. 1040ez2012 You become ill and are hospitalized. 1040ez2012 The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. 1040ez2012 Your son is treated as living with you during this 10-day period because he was living in your home. 1040ez2012 Example 5—child emancipated in May. 1040ez2012 When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. 1040ez2012 As a result, he is not considered in the custody of his parents for more than half of the year. 1040ez2012 The special rule for children of divorced or separated parents does not apply. 1040ez2012 Example 6—child emancipated in August. 1040ez2012 Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. 1040ez2012 She turns 18 and is emancipated under state law on August 1, 2013. 1040ez2012 Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. 1040ez2012 You are the custodial parent. 1040ez2012 Written declaration. 1040ez2012    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. 1040ez2012 The noncustodial parent must attach a copy of the form or statement to his or her tax return. 1040ez2012   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. 1040ez2012 Post-1984 and pre-2009 divorce decree or separation agreement. 1040ez2012   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. 1040ez2012 The decree or agreement must state all three of the following. 1040ez2012 The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. 1040ez2012 The custodial parent will not claim the child as a dependent for the year. 1040ez2012 The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. 1040ez2012   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. 1040ez2012 The cover page (write the other parent's social security number on this page). 1040ez2012 The pages that include all of the information identified in items (1) through (3) above. 1040ez2012 The signature page with the other parent's signature and the date of the agreement. 1040ez2012 Post-2008 divorce decree or separation agreement. 1040ez2012   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. 1040ez2012 The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. 1040ez2012 The form or statement must release the custodial parent's claim to the child without any conditions. 1040ez2012 For example, the release must not depend on the noncustodial parent paying support. 1040ez2012    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. 1040ez2012 Revocation of release of claim to an exemption. 1040ez2012   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). 1040ez2012 For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. 1040ez2012 The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. 1040ez2012 Remarried parent. 1040ez2012   If you remarry, the support provided by your new spouse is treated as provided by you. 1040ez2012 Parents who never married. 1040ez2012   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. 1040ez2012 Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. 1040ez2012 This test is different from the support test to be a qualifying relative, which is described later. 1040ez2012 However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. 1040ez2012 If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. 1040ez2012 Worksheet 3-1. 1040ez2012 Worksheet for Determining Support Funds Belonging to the Person You Supported       1. 1040ez2012 Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. 1040ez2012 Do not include funds provided by the state; include those amounts on line 23 instead 1. 1040ez2012     2. 1040ez2012 Enter the amount on line 1 that was used for the person's support 2. 1040ez2012     3. 1040ez2012 Enter the amount on line 1 that was used for other purposes 3. 1040ez2012     4. 1040ez2012 Enter the total amount in the person's savings and other accounts at the end of the year 4. 1040ez2012     5. 1040ez2012 Add lines 2 through 4. 1040ez2012 (This amount should equal line 1. 1040ez2012 ) 5. 1040ez2012     Expenses for Entire Household (where the person you supported lived)       6. 1040ez2012 Lodging (complete line 6a or 6b):         a. 1040ez2012 Enter the total rent paid 6a. 1040ez2012       b. 1040ez2012 Enter the fair rental value of the home. 1040ez2012 If the person you supported owned the home,  also include this amount in line 21 6b. 1040ez2012     7. 1040ez2012 Enter the total food expenses 7. 1040ez2012     8. 1040ez2012 Enter the total amount of utilities (heat, light, water, etc. 1040ez2012 not included in line 6a or 6b) 8. 1040ez2012     9. 1040ez2012 Enter the total amount of repairs (not included in line 6a or 6b) 9. 1040ez2012     10. 1040ez2012 Enter the total of other expenses. 1040ez2012 Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. 1040ez2012     11. 1040ez2012 Add lines 6a through 10. 1040ez2012 These are the total household expenses 11. 1040ez2012     12. 1040ez2012 Enter total number of persons who lived in the household 12. 1040ez2012     Expenses for the Person You Supported       13. 1040ez2012 Divide line 11 by line 12. 1040ez2012 This is the person's share of the household expenses 13. 1040ez2012     14. 1040ez2012 Enter the person's total clothing expenses 14. 1040ez2012     15. 1040ez2012 Enter the person's total education expenses 15. 1040ez2012     16. 1040ez2012 Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. 1040ez2012     17. 1040ez2012 Enter the person's total travel and recreation expenses 17. 1040ez2012     18. 1040ez2012 Enter the total of the person's other expenses 18. 1040ez2012     19. 1040ez2012 Add lines 13 through 18. 1040ez2012 This is the total cost of the person's support for the year 19. 1040ez2012     Did the Person Provide More Than Half of His or Her Own Support?       20. 1040ez2012 Multiply line 19 by 50% (. 1040ez2012 50) 20. 1040ez2012     21. 1040ez2012 Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. 1040ez2012 This is the amount the person provided for his or her own support 21. 1040ez2012     22. 1040ez2012 Is line 21 more than line 20?   No. 1040ez2012 You meet the support test for this person to be your qualifying child. 1040ez2012 If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. 1040ez2012 Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. 1040ez2012    Yes. 1040ez2012 You do not meet the support test for this person to be either your qualifying child or your qualifying relative. 1040ez2012 Stop here. 1040ez2012        Did You Provide More Than Half?       23. 1040ez2012 Enter the amount others provided for the person's support. 1040ez2012 Include amounts provided by state, local, and other welfare societies or agencies. 1040ez2012 Do not include any amounts included on line 1 23. 1040ez2012     24. 1040ez2012 Add lines 21 and 23 24. 1040ez2012     25. 1040ez2012 Subtract line 24 from line 19. 1040ez2012 This is the amount you provided for the person's support 25. 1040ez2012     26. 1040ez2012 Is line 25 more than line 20?   Yes. 1040ez2012 You meet the support test for this person to be your qualifying relative. 1040ez2012    No. 1040ez2012 You do not meet the support test for this person to be your qualifying relative. 1040ez2012 You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. 1040ez2012 See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. 1040ez2012   Example. 1040ez2012 You provided $4,000 toward your 16-year-old son's support for the year. 1040ez2012 He has a part-time job and provided $6,000 to his own support. 1040ez2012 He provided more than half of his own support for the year. 1040ez2012 He is not your qualifying child. 1040ez2012 Foster care payments and expenses. 1040ez2012   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. 1040ez2012 Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. 1040ez2012   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. 1040ez2012 For more information about the deduction for charitable contributions, see chapter 24. 1040ez2012 If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. 1040ez2012   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. 1040ez2012 Example 1. 1040ez2012 Lauren, a foster child, lived with Mr. 1040ez2012 and Mrs. 1040ez2012 Smith for the last 3 months of the year. 1040ez2012 The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). 1040ez2012 They did not care for her as a trade or business or to benefit the agency that placed her in their home. 1040ez2012 The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. 1040ez2012 Example 2. 1040ez2012 You provided $3,000 toward your 10-year-old foster child's support for the year. 1040ez2012 The state government provided $4,000, which is considered support provided by the state, not by the child. 1040ez2012 See Support provided by the state (welfare, food stamps, housing, etc. 1040ez2012 ) , later. 1040ez2012 Your foster child did not provide more than half of her own support for the year. 1040ez2012 Scholarships. 1040ez2012   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. 1040ez2012 Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. 1040ez2012 Exception. 1040ez2012   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. 1040ez2012 Example 1—child files joint return. 1040ez2012 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 1040ez2012 He earned $25,000 for the year. 1040ez2012 The couple files a joint return. 1040ez2012 Because your daughter and her husband file a joint return, she is not your qualifying child. 1040ez2012 Example 2—child files joint return only as a claim for refund of withheld tax. 1040ez2012 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 1040ez2012 Neither is required to file a tax return. 1040ez2012 They do not have a child. 1040ez2012 Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 1040ez2012 The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. 1040ez2012 Example 3—child files joint return to claim American opportunity credit. 1040ez2012 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 1040ez2012 He and his wife were not required to file a tax return. 1040ez2012 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 1040ez2012 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 1040ez2012 The exception to the joint return test does not apply, so your son is not your qualifying child. 1040ez2012 Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. 1040ez2012 This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. 1040ez2012 If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. 1040ez2012 Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. 1040ez2012 Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). 1040ez2012 The exemption for the child. 1040ez2012 The child tax credit. 1040ez2012 Head of household filing status. 1040ez2012 The credit for child and dependent care expenses. 1040ez2012 The exclusion from income for dependent care benefits. 1040ez2012 The earned income credit. 1040ez2012 The other person cannot take any of these benefits based on this qualifying child. 1040ez2012 In other words, you and the other person cannot agree to divide these benefits between you. 1040ez2012 The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. 1040ez2012 Tiebreaker rules. 1040ez2012   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. 1040ez2012 If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. 1040ez2012 If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. 1040ez2012 If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. 1040ez2012 If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. 1040ez2012 If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. 1040ez2012 If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. 1040ez2012 If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. 1040ez2012 See Example 6 . 1040ez2012   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. 1040ez2012 Example 1—child lived with parent and grandparent. 1040ez2012 You and your 3-year-old daughter Jane lived with your mother all year. 1040ez2012 You are 25 years old, unmarried, and your AGI is $9,000. 1040ez2012 Your mother's AGI is $15,000. 1040ez2012 Jane's father did not live with you or your daughter. 1040ez2012 You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. 1040ez2012 Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 1040ez2012 However, only one of you can claim her. 1040ez2012 Jane is not a qualifying child of anyone else, including her father. 1040ez2012 You agree to let your mother claim Jane. 1040ez2012 This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). 1040ez2012 Example 2—parent has higher AGI than grandparent. 1040ez2012 The facts are the same as in Example 1 except your AGI is $18,000. 1040ez2012 Because your mother's AGI is not higher than yours, she cannot claim Jane. 1040ez2012 Only you can claim Jane. 1040ez2012 Example 3—two persons claim same child. 1040ez2012 The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. 1040ez2012 In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. 1040ez2012 The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. 1040ez2012 Example 4—qualifying children split between two persons. 1040ez2012 The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. 1040ez2012 Only one of you can claim each child. 1040ez2012 However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. 1040ez2012 For example, if you claim one child, your mother can claim the other two. 1040ez2012 Example 5—taxpayer who is a qualifying child. 1040ez2012 The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. 1040ez2012 This means you are your mother's qualifying child. 1040ez2012 If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. 1040ez2012 Example 6—child lived with both parents and grandparent. 1040ez2012 The facts are the same as in Example 1 except you are married to your daughter's father. 1040ez2012 The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. 1040ez2012 If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. 1040ez2012 Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. 1040ez2012 Example 7—separated parents. 1040ez2012 You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. 1040ez2012 In August and September, your son lived with you. 1040ez2012 For the rest of the year, your son lived with your husband, the boy's father. 1040ez2012 Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. 1040ez2012 At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents (or parents who live apart) does not apply. 1040ez2012 You and your husband will file separate returns. 1040ez2012 Your husband agrees to let you treat your son as a qualifying child. 1040ez2012 This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). 1040ez2012 However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. 1040ez2012 As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. 1040ez2012 Example 8—separated parents claim same child. 1040ez2012 The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. 1040ez2012 In this case, only your husband will be allowed to treat your son as a qualifying child. 1040ez2012 This is because, during 2013, the boy lived with him longer than with you. 1040ez2012 If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 1040ez2012 If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. 1040ez2012 In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. 1040ez2012 As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. 1040ez2012 Example 9—unmarried parents. 1040ez2012 You, your 5-year-old son, and your son's father lived together all year. 1040ez2012 You and your son's father are not married. 1040ez2012 Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. 1040ez2012 Your AGI is $12,000 and your son's father's AGI is $14,000. 1040ez2012 Your son's father agrees to let you claim the child as a qualifying child. 1040ez2012 This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). 1040ez2012 Example 10—unmarried parents claim same child. 1040ez2012 The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. 1040ez2012 In this case, only your son's father will be allowed to treat your son as a qualifying child. 1040ez2012 This is because his AGI, $14,000, is more than your AGI, $12,000. 1040ez2012 If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 1040ez2012 If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. 1040ez2012 Example 11—child did not live with a parent. 1040ez2012 You and your 7-year-old niece, your sister's child, lived with your mother all year. 1040ez2012 You are 25 years old, and your AGI is $9,300. 1040ez2012 Your mother's AGI is $15,000. 1040ez2012 Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. 1040ez2012 Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 1040ez2012 However, only your mother can treat her as a qualifying child. 1040ez2012 This is because your mother's AGI, $15,000, is more than your AGI, $9,300. 1040ez2012 Applying this special rule to divorced or separated parents (or parents who live apart). 1040ez2012   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. 1040ez2012 However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. 1040ez2012 If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. 1040ez2012 Example 1. 1040ez2012 You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. 1040ez2012 Your AGI is $10,000. 1040ez2012 Your mother's AGI is $25,000. 1040ez2012 Your son's father did not live with you or your son. 1040ez2012 Under the rules explained earlier for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for him. 1040ez2012 Because of this, you cannot claim an exemption or the child tax credit for your son. 1040ez2012 However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. 1040ez2012 You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. 1040ez2012 But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. 1040ez2012 (Note: The support test does not apply for the earned income credit. 1040ez2012 ) However, you agree to let your mother claim your son. 1040ez2012 This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. 1040ez2012 (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. 1040ez2012 ) Example 2. 1040ez2012 The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. 1040ez2012 Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. 1040ez2012 Example 3. 1040ez2012 The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. 1040ez2012 Your mother also claims him as a qualifying child for head of household filing status. 1040ez2012 You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. 1040ez2012 The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. 1040ez2012 Qualifying Relative Four tests must be met for a person to be your qualifying relative. 1040ez2012 The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. 1040ez2012 Age. 1040ez2012   Unlike a qualifying child, a qualifying relative can be any age. 1040ez2012 There is no age test for a qualifying relative. 1040ez2012 Kidnapped child. 1040ez2012   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. 1040ez2012 See Publication 501 for details. 1040ez2012 Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. 1040ez2012 Example 1. 1040ez2012 Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. 1040ez2012 She is not your qualifying relative. 1040ez2012 Example 2. 1040ez2012 Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. 1040ez2012 He is not your qualifying relative. 1040ez2012 Example 3. 1040ez2012 Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. 1040ez2012 He may be your qualifying relative if the gross income test and the support test are met. 1040ez2012 Example 4. 1040ez2012 Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. 1040ez2012 He is not your qualifying child because he does not meet the residency test. 1040ez2012 He may be your qualifying relative if the gross income test and the support test are met. 1040ez2012 Child of person not required to file a return. 1040ez2012   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. 1040ez2012 Example 1—return not required. 1040ez2012 You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. 1040ez2012 Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. 1040ez2012 Both your friend and her child are your qualifying relatives if the support test is met. 1040ez2012 Example 2—return filed to claim refund. 1040ez2012 The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. 1040ez2012 She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. 1040ez2012 Both your friend and her child are your qualifying relatives if the support test is met. 1040ez2012 Example 3—earned income credit claimed. 1040ez2012 The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. 1040ez2012 Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. 1040ez2012 Child in Canada or Mexico. 1040ez2012   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. 1040ez2012 If the child does not live with you, the child does not meet the residency test to be your qualifying child. 1040ez2012 However, the child may still be your qualifying relative. 1040ez2012 If the persons the child does live with are not U. 1040ez2012 S. 1040ez2012 citizens and have no U. 1040ez2012 S. 1040ez2012 gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. 1040ez2012 If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. 1040ez2012   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. 1040ez2012 S. 1040ez2012 citizen, U. 1040ez2012 S. 1040ez2012 resident alien, or U. 1040ez2012 S. 1040ez2012 national. 1040ez2012 There is an exception for certain adopted children who lived with you all year. 1040ez2012 See Citizen or Resident Test , earlier. 1040ez2012 Example. 1040ez2012 You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. 1040ez2012 You are single and live in the United States. 1040ez2012 Your mother is not a U. 1040ez2012 S. 1040ez2012 citizen and has no U. 1040ez2012 S. 1040ez2012 income, so she is not a “taxpayer. 1040ez2012 ” Your children are not your qualifying children because they do not meet the residency test. 1040ez2012 But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. 1040ez2012 You may also be able to claim your mother as a dependent if the gross income and support tests are met. 1040ez2012 Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . 1040ez2012 If at any time during the year the person was your spouse, that person cannot be your qualifying relative. 1040ez2012 However, see Personal Exemptions , earlier. 1040ez2012 Relatives who do not have to live with you. 1040ez2012   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. 1040ez2012 Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). 1040ez2012 (A legally adopted child is considered your child. 1040ez2012 ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. 1040ez2012 Your father, mother, grandparent, or other direct ancestor, but not foster parent. 1040ez2012 Your stepfather or stepmother. 1040ez2012 A son or daughter of your brother or sister. 1040ez2012 A son or daughter of your half brother or half sister. 1040ez2012 A brother or sister of your father or mother. 1040ez2012 Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 1040ez2012 Any of these relationships that were established by marriage are not ended by death or divorce. 1040ez2012 Example. 1040ez2012 You and your wife began supporting your wife's father, a widower, in 2006. 1040ez2012 Your wife died in 2012. 1040ez2012 Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. 1040ez2012 You can claim him as a dependent if all other tests are met, including the gross income test and support test. 1040ez2012 Foster child. 1040ez2012   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 1040ez2012 Joint return. 1040ez2012   If you file a joint return, the person can be related to either you or your spouse. 1040ez2012 Also, the person does not need to be related to the spouse who provides support. 1040ez2012   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. 1040ez2012 However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. 1040ez2012 Temporary absences. 1040ez2012   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 1040ez2012   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. 1040ez2012 Death or birth. 1040ez2012   A person who died during the year, but lived with you as a member of your household until death, will meet this test. 1040ez2012 The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. 1040ez2012 The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. 1040ez2012   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. 1040ez2012 Example. 1040ez2012 Your dependent mother died on January 15. 1040ez2012 She met the tests to be your qualifying relative. 1040ez2012 The other tests to claim an exemption for a dependent were also met. 1040ez2012 You can claim an exemption for her on your return. 1040ez2012 Local law violated. 1040ez2012   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. 1040ez2012 Example. 1040ez2012 Your girlfriend lived with you as a member of your household all year. 1040ez2012 However, your relationship with her violated the laws of the state where you live, because she was married to someone else. 1040ez2012 Therefore, she does not meet this test and you cannot claim her as a dependent. 1040ez2012 Adopted child. 1040ez2012   An adopted child is always treated as your own child. 1040ez2012 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 1040ez2012 Cousin. 1040ez2012   Your cousin meets this test only if he or she lives with you all year as a member of your household. 1040ez2012 A cousin is a descendant of a brother or sister of your father or mother. 1040ez2012 Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. 1040ez2012 Gross income defined. 1040ez2012   Gross income is all income in the form of money, property, and services that is not exempt from tax. 1040ez2012   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. 1040ez2012   Gross receipts from rental property are gross income. 1040ez2012 Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. 1040ez2012   Gross income includes a partner's share of the gross (not a share of the net) partnership income. 1040ez2012    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. 1040ez2012 Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. 1040ez2012 For more information about scholarships, see chapter 12. 1040ez2012   Tax-exempt income, such as certain social security benefits, is not included in gross income. 1040ez2012 Disabled dependent working at sheltered workshop. 1040ez2012   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. 1040ez2012 The availability of medical care at the workshop must be the main reason for the individual's presence there. 1040ez2012 Also, the income must come solely from activities at the workshop that are incident to this medical care. 1040ez2012   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. 1040ez2012 S. 1040ez2012 possession, a political subdivision of a state or possession, the United States, or the District of Columbia. 1040ez2012 “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. 1040ez2012 Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. 1040ez2012 However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. 1040ez2012 How to determine if support test is met. 1040ez2012   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. 1040ez2012 This includes support the person provided from his or her own funds. 1040ez2012   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. 1040ez2012 Person's own funds not used for support. 1040ez2012   A person's own funds are not support unless they are actually spent for support. 1040ez2012 Example. 1040ez2012 Your mother received $2,400 in social security benefits and $300 in interest. 1040ez2012 She paid $2,000 for lodging and $400 for recreation. 1040ez2012 She put $300 in a savings account. 1040ez2012 Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. 1040ez2012 If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. 1040ez2012 Child's wages used for own support. 1040ez2012   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. 1040ez2012 Year support is provided. 1040ez2012   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. 1040ez2012   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. 1040ez2012 Armed Forces dependency allotments. 1040ez2012   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. 1040ez2012 If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. 1040ez2012 Example. 1040ez2012 You are in the Armed Forces. 1040ez2012 You authorize an allotment for your widowed mother that she uses to support herself and her sister. 1040ez2012 If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. 1040ez2012 Tax-exempt military quarters allowances. 1040ez2012   These allowances are treated the same way as dependency allotments in figuring support. 1040ez2012 The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. 1040ez2012 Tax-exempt income. 1040ez2012   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. 1040ez2012 Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. 1040ez2012 Example 1. 1040ez2012 You provide $4,000 toward your mother's support during the year. 1040ez2012 She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. 1040ez2012 She uses all these for her support. 1040ez2012 You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). 1040ez2012 Example 2. 1040ez2012 Your niece takes out a student loan of $2,500 a