Filing Status and Qualifying Dependents

Filing status's: 

  • Single 

  • Married Filing Jointly 

  • Married Filing Separately 

  • Head of Household 

  • Qualifying Surviving Spouse 

  • Dependent (less common) 

 

Age range: The taxpayer's age on December 31st of the tax year. 

  • Under the age of 65 

  • At or above the age of 65 

Gross Income: Taxpayer's gross income for the tax year compared to IRS provided threshold 

  • Income less than threshold: not required to file a return 

  • Income at/above threshold: must file a return 

Keep in mind to always check to make sure you are looking at the most recent tax return filing requirements chart.  

  • Not everyone is required to file a return 

  • Dependents claimed on someone else's return may still qualify to file a return 

  • Even if the taxpayer is not required to file a return, they may still file a return that might bring a refund for any federal income tax withheld. 


If you were married at the end of the tax year you can choose whether to file jointly or separately.  

  • Most spouses file joint returns together 

  • If one spouse chooses to file separately, then both spouses must file separately 

 

Married as of December 31st: Choose to file as Married Filing Jointly or Married Filing Separately  

 

Filing Jointly: You mya get a bigger tax break or pay less in taxes than if filing separately  

 

Determine Filing Status: Follow the flowchart and ask questions to help select the most appropriate tax filing status. 

 


Dependent: A qualifying child or a qualifying relative. Taxpayer provided at least half of the persons total support for the year.  

 

Requirement 1: Qualifying Child Test 

Requirement 2: Qualifying relative test 

  • 5 questions to qualify as a dependent 

  • Each question may have additional requirements 

 

5 Step process to see if an individual is a qualifying dependent:  

Step 1 - a qualifying child a child who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother or sister, or a descendant of any of them. 

Step 2 - If you have a child you believe is a qualifying child, was the child a citizen, national, or resident alien of the US or a resident of Canada or Mexico? If yes, you may proceed to the next question; if no, stop: you cannot claim this child as a dependent. 

Step 3 - Does your qualifying child qualify you for the child tax credit or credit for other dependents? Did the child have a SSN, ITIN, or Adoption Taxpayer Identification Number (ATIN) issued on or before the date of your return (including extensions)? If yes, continue. If no, stop because you cannot claim the child tax credit or the credit for other dependents for this child.  

Step 4 - Is your qualifying relative your dependent? Does any person meet the conditions to be your qualifying relative? If yes, continue. If not, stop. Was your qualifying relative a citizen, national, or resident alien of the US, or a resident of Canada or Mexico? If yes, continue. If no, stop because you cannot claim this person or dependent. 

Step 5 - Does your qualifying relative qualify you for the credit for other dependents? Did your qualifying relative have a SSN, ITIN, or ATIN issued on or before the due date of your tax return, including extensions? Answer ;yes; if you are applying for an ITIN or ATIN for the qualifying relative on or before the return due date, including extensions. If yes, continue. If no, stop because you cannot claim the credit for other dependents for this qualifying relative.  

 

Qualifying conditions to claim a dependent child: 

  1. Age Test 

    1. 19 or younger at the end of the year and younger than the taxpayer 

    2. 24 or younger if a full-time student for at least 5 calendar months of the year 

    3. A qualifying dependent child may be any age if permanently, totally disabled as per a doctor 

  2. Support Test - supporting means taking care of household expenses such as rent, groceries, utilities, clothing, unreimbursed medical fees, travel, and recreation expenses 

    1. The child cannot provide more than half of her own financial support 

  3. Residency Test 

    1. The child must have lived with the taxpayer for more than half the tax year 

  4. Relationship Test 

    1. Must be an eligible relative of the taxpayer 

  5. Gross Income Test 

    1. Income must be below a specific threshold set by the IRS 


Dependent: any qualifying child or qualifying relative that the taxpayer supports by providing at least half of the dependent person's total support for the tax year. 

 

Qualifying children: must be related to the taxpayer, meet specific age requirements, live with the taxpayer for more than half a year, cannot provide more than half of their own financial support during the year, and do not have to be biological children. There are tax credits for certain qualifying children, and credits may be impacted by the taxpayer's overall filing status.  

 

Qualifying relative - A person of any age who is not a qualifying child, satisfies the following 3 tests, and may be claimed as a dependent for tax purposes. 

 

Taxable scholarship funds: If a student has a scholarship money left over after covering all qualified education expenses, they will need to include that amount as part of their gross taxable income for tax purposes. Scholarship money counts as income when used to pay for room or board, utilities, or other non-qualified expenses, such as school supplies not listed as required. For example, if you are  student and you use your scholarship funds for optional books that do not count toward satisfying course requirements and are not required of every student, they would be subject to taxation.  

 

1098-T - Parents usually report the 1098-T on the parents tax return. If scholarship income in Box 5 of the 1098-T exceeds the amount reported in Box 1 for qualified tuition and related expenses, the excess amount is considered taxable income to be reported by the student on a dependent tax return. For scholarships to be completely tax-free, the money must go toward plating qualified educational expenses at qualified institutions. Scholarship funds that exceed the qualified amount or go toward certain non-qualified expenses are typically taxable income.  

 

To ensure a scholarship is not taxed - Utilize the funds for qualified educations expenses, such as tuition, enrollment, course-related costs, mandatory fees, required books, supplies, equipment, and other necessary fees at an eligible institution. For scholarships to cover these course-related expenses tax-free, these expenses must be required for all students in a program.  


According to the US immigration service, residency status refers to a foreign national's legal status in a country where they are not a citizen. In the US a lawful permanent resident or a green card holders refers to the immigration status of a foreign national who is authorized to live and work in the US permanently.  

 

There are 3 different tax residency statuses for non-US citizens 

  • Resident aliens 

    • They meet the green card test and the substantial presence test 

    • They must follow the same tax laws as US citizens. They must report all income, within and outside of the US on a Form 1040 in their annual income tax return.  

  • Nonresident aliens 

    • Neither a US citizen or a resident alien for tax purposes. 

    • If they have a US tax reporting requirement, you will file a Form 1040-NR 

  • Dual-status aliens 

    • Example: client resident status changed from nonresident alien to resident alien when moved from Korea to the US during the year 

    • Individuals whose statuses have changed due to their arrival to or departure from the US will generally have dual-status tax years for the year that their moves happened 

    • The taxes on the income will different under the provisions of the laws that apply to each period.  

 

Residency status can have a big impact on taxable income.