• YOU may claim exemptions for yourself, your spouse and your dependents.
• Dependents must have a Social Security number (TIN is not good enough).
• Exemption amount is $4,000 for 2015 for each exemption.
• Exemptions reduce your taxable income and your income tax.
• It could also produce credits such as child care credit, earned income credit, child tax credit, additional child tax credit and other credits.
• Some of these credits are refundable (meaning that you can get a refund even if your tax is zero).
• True, your spouse may be dependent on you, but do not claim him/her as your dependent even if he/she does not have not any income. The rationale: you file a joint return with him/her as your spouse, not as dependent.
• If you are claimed as a dependent by another such as your parents, do not claim your exemption again as this will result in a duplication of deduction. It invites a notice from the IRS. Yes, they will catch it. IRS computers are programmed to identify duplication of exemptions for the same Social Security Number. Guaranteed.
• You may not claim a married person as your dependent if he/she files a joint return with spouse.
• Your dependent must be a US citizen, US resident alien, or US national or resident of Canada or Mexico for some part of the year. Note: A US national is an individual who, although not a US citizen, owes his/her allegiance to the United States. US nationals include American Samoans and Northern Mariana Islanders who chose to become US nationals instead of US citizens.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].
