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Amend Taxes

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Amend Taxes

Amend taxes 1. Amend taxes   Organizations Subject to the Tax Table of Contents The tax on unrelated business income applies to most organizations exempt from tax under section 501(a). Amend taxes These organizations include charitable, religious, scientific, and other organizations described in section 501(c), as well as employees' trusts forming part of pension, profit-sharing, and stock bonus plans described in section 401(a). Amend taxes In addition, the following are subject to the tax on unrelated business income. Amend taxes Individual retirement arrangements (IRAs), including traditional IRAs, Roth IRAs, Coverdell IRAs, simplified employee pensions (SEP-IRAs), and savings incentive match plans for employees (SIMPLE IRAs). Amend taxes State and municipal colleges and universities. Amend taxes Qualified state tuition programs. Amend taxes Medical savings accounts (MSAs) described in section 220(d). Amend taxes Coverdell savings accounts described in section 530. Amend taxes U. Amend taxes S. Amend taxes instrumentalities. Amend taxes   A corporation that is a U. Amend taxes S. Amend taxes instrumentality described in section 501(c)(1) is not subject to the tax on unrelated business income if the corporation is organized under an Act of Congress and, under the Act, is exempt from federal income taxes. Amend taxes Colleges and universities. Amend taxes   Colleges and universities that are agencies or instrumentalities of any government or any political subdivision of a government, or that are owned or operated by a government or political subdivision of a government, are subject to the tax on unrelated business income. Amend taxes As used here, the word government includes any foreign government (to the extent not contrary to a treaty) and all domestic governments (the United States and any of its possessions, any state, and the District of Columbia). Amend taxes   The tax is on the unrelated business income of both the universities and colleges themselves and on their wholly owned tax exempt subsidiary organizations. Amend taxes It is immaterial whether the business is conducted by the university or by a separately incorporated wholly owned subsidiary. Amend taxes If the business activity is unrelated, the income in both instances will be subject to the tax. Amend taxes If the primary purpose of a wholly owned subsidiary is to operate or conduct any unrelated trade or business (other than holding title to property and collecting income from it), the subsidiary is not an exempt organization, and this rule does not apply. Amend taxes Title-holding corporations. Amend taxes   When an exempt title-holding corporation, described in section 501(c)(2), pays any of its net income to an organization that itself is exempt from tax under section 501(a) (or would pay such an amount except that the expenses of collecting its income exceed the amount collected) and files a consolidated return with that organization, the title-holding corporation is treated, for unrelated business income tax purposes, as organized and operated for the same purposes as the exempt payee organization. Amend taxes   Thus, a title-holding corporation whose source of income is related to the exempt purposes of the payee organization is not subject to the unrelated business income tax if the holding corporation and the payee organization file a consolidated return. Amend taxes However, if the source of the income is not so related, the title-holding corporation is subject to unrelated business income tax. Amend taxes Example. Amend taxes X, a title-holding corporation, is required to distribute its net income to A, an exempt organization. Amend taxes During the tax year, X realizes net income of $900,000 from source M, which is related to A's exempt function. Amend taxes X also receives $100,000 from source N, which is not related to A's exempt function. Amend taxes X and A file a consolidated return for the tax year. Amend taxes X has unrelated business income of $100,000. Amend taxes Prev  Up  Next   Home   More Online Publications
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Know the Facts

When you borrow money to buy a car or truck, the lender can take your vehicle back if you miss a payment or in some other way violate the contract. You should also be aware that the lender:

  • Can repossess with cause without advance notice;
  • Can insist you pay off the entire loan balance in order to get the repossessed vehicle back;
  • Can sell the vehicle at auction;
  • Might be able to sue you for the difference between the vehicle's auction price and what you owe
  • Cannot break into your home or physically threaten someone while taking the vehicle

If you know you're going to be late with a payment, talk to the lender to try to work things out. If you and the lender reach an agreement, be sure you get the agreement in writing. Contact your state or local consumer protection office to find out whether your state gives you any additional rights.

Beware of Car Title Loans

Chances are you have seen or heard an ad for a car title loan to help you make ends meet. In a title loan, a consumer in need of quick cash uses the car title as collateral for a short term loan. No job or postdated checks are required. Sounds simple enough, right? Wrong.

What the title lenders don't say in their ads is that you have to turn over your car title and keys when you get the loan. They'll loan you a small fraction of the car value at sky high interest rates- as much as 25% for one month (300% APR) !!! At the end of the month you are expected to pay the whole amount back, plus the interest.

If you can't pay the loan there are only two options. You could roll the loan over for another month, with more fees and interest. However, as the loan amount increases, it becomes almost impossible to repay the debt. The other option is for the lender to repossess your car. Unfortunately, there is no federal regulation of title loans now, but some states have put some rules in place to regulate the interest charged by these lenders.

The Amend Taxes

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