When we think of dependents in terms of taxes, we usually think about the children we can claim as dependents. But did you know you can claim adult dependents as well?
Who Qualifies as an Adult Dependent
In general, an adult that you can claim as a dependent on your tax return is either a full-time student under the age of 24, a person who is permanently and totally disabled, or a parent that you support and/or care for.
If they are not your qualifying child, such as the aforementioned student, then the eligibility requirements are the same as for a qualifying relative. They can be any age, and their own gross income must be less than $4,700. If they get more than half of their financial support from you, then they don’t necessarily have to live with you, such as an elderly parent who lives elsewhere but is supported by you.
Credit for Other Dependents
An adult dependent may entitle you to the Credit for Other Dependents. It is a credit of up to $500 for each qualifying dependent but does phase out with modified adjusted gross income over $200,000 for single/head of household filers and $400,000 for married filing jointly filers.
Child and Dependent Care Credit
You may also qualify for the Child and Dependent Care credit if you have to hire someone else to help you care for an adult dependent. This credit can be up to 35% of up to $3,000 of expenses for one qualifying dependent or up to $6,000 of expenses for two or more qualifying dependents. To qualify, you must have earned income or be looking for work.
Other Potential Ways to Save
If you’re self-employed and paid for health insurance, you may be able to deduct the premiums you paid to cover a child up to the age of 27, even if you do not claim that twenty-something as a dependent.
Adult Dependents for California Tax Returns
The eligibility requirements are very similar for California state tax returns, but always confirm with a certified tax preparer.
Have a question about which adults you can claim as dependents? One of our tax preparers can answer your questions. Reach out today.
**Please keep in mind: Tax laws and eligibility requirements change often, and these lists are not exhaustive. Always contact a tax preparer for the most up-to-date information.