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Free State E Filing

File A 1040xIrs Form 1040x Amended Tax ReturnTax Forms 1040Irs Forms 10401040ez 2012 Instructions1040nr Software FreeTurbo Tax Amended ReturnH&r Block LoginEz Form Online1040 Ez Tax1040x Site Efile ComState Tax Forms OnlineAmend A Tax ReturnFile Taxes Free OnlineFree Online 1040ez FilingFree State Tax Return FormsCan I E File A 2012 Tax ReturnTax Return2011 Income Tax Forms 1040ez1040 Com1040ez Worksheet2009 Form 1040 EzAmend 2012 Tax Return TurbotaxState Income Tax Form 500ezFile 1040x Online FreeFile Previous Years Tax ReturnsTurbotax Premier Federal & State Returns Plus Federal E File 2013Back Tax Relief10ezHow Do I Get 2012 Tax FormsFile Previous Years TaxesHow To File An Amended Tax Return For 2012File State TaxesWhere To Send 2011 Tax Return2011 Form 1040ezHow To File 2011 Tax Return In 2013H&r Block Online FilingE File TaxesH&r Block Free TaxForm 1040ez 2011

Free State E Filing

Free state e filing Index A Assistance (see Help) C Casualty and theft losses, Casualty and Theft Losses Clean-up costs, Demolition and Clean-up Costs Copy of tax return, request for, Request for copy of tax return. Free state e filing Credits: Employee retention, Employee Retention Credit D Demolition costs, Demolition and Clean-up Costs Depreciation: Qualified recovery assistance property, Qualified recovery assistance property. Free state e filing Special allowance, Special Depreciation Allowance Disaster area: May 4, 2007 storms and tornadoes, Kansas Disaster Area Distributions: Home purchase or construction, Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Qualified recovery assistance, Qualified recovery assistance distribution. Free state e filing Repayment of, Repayment of Qualified Recovery Assistance Distributions Taxation of, Taxation of Qualified Recovery Assistance Distributions E Eligible retirement plan, Eligible retirement plan. Free state e filing Employee retention credit, Employee Retention Credit F Free tax services, How To Get Tax Help H Help: How to get, How To Get Tax Help Phone number, How To Get Tax Help Special IRS assistance, How To Get Tax Help Website, How To Get Tax Help I Involuntary conversion (see Replacement period for nonrecognition of gain) IRAs and other retirement plans, IRAs and Other Retirement Plans K Kansas disaster area, Kansas Disaster Area M More information (see Tax help) N Net operating losses, Net Operating Losses P Publications (see Tax help) Q Qualified recovery assistance distribution, Qualified recovery assistance distribution. Free state e filing Qualified recovery assistance loss, Qualified recovery assistance loss. Free state e filing R Replacement period for nonrecognition of gain, Replacement Period for Nonrecognition of Gain Retirement plan, eligible, Eligible retirement plan. Free state e filing Retirement plans, IRAs and Other Retirement Plans S Section 179 deduction, Increased Section 179 Deduction Storms and tornadoes, Storms and Tornadoes T Tax help, How To Get Tax Help (see Help) Tax return: Request for copy, Request for copy of tax return. Free state e filing Request for transcript, Request for transcript of tax return. Free state e filing Taxpayer Advocate, Contacting your Taxpayer Advocate. Free state e filing Theft losses, Casualty and Theft Losses Transcript of tax return, request for, Request for transcript of tax return. Free state e filing TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
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Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds and Flooding in Kentucky

Updated 3/13/2012 to include Grayson, Larue, Ohio, Russell and Trimble counties.
Updated 3/12/2012 to include Magoffin and Wolfe counties.
Updated 3/9/2012 to include Bath, Campbell, Carroll, Grant, Martin, Montgomery and Rowan counties.

KY-2012-08, March 7, 2012

DETROIT — Victims of the severe storms, tornadoes, straight-line winds and flooding that started on Feb. 29, 2012 in parts of Kentucky may qualify for tax relief from the Internal Revenue Service.

The President has declared Bath, Campbell, Carroll, Grant, Grayson, Johnson, Kenton, Larue, Laurel, Lawrence, Magoffin, Martin, Menifee, Montgomery, Morgan, Ohio, Pendleton, Rowan, Russell, Trimble and Wolfe counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Feb. 29, and on or before May 31, have been postponed to May 31, 2012. This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an individual retirement account (IRA).  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Feb. 29, and on or before March 15, as long as the deposits are made by March 15, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until May 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Feb. 29 and on or before May 31.

The IRS also gives affected taxpayers until May 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Feb. 29 and on or before May 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Feb. 29 and on or before March 15 provided the taxpayer makes these deposits by March 15.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Kentucky, Severe Storms, Tornadoes, Straight-line Winds, and Flooding” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Page Last Reviewed or Updated: 30-Jan-2014

The Free State E Filing

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