A single individual who maintains a household for a dependent child for more than one-half of the year qualifies for Head of Household. A child does not always have to be a dependent and a dependent does not always have to be a child. There are certain circumstances where other individuals may also qualify you for Head of Household. The rules are sometimes complex, and a tax professional should be consulted. Claim an Exemption for All Dependents.
Taxpayers receive a substantial deduction for each dependency exemption.
To be a dependent, five tests must be met. These tests are support, gross income, relationship, joint return, and citizenship. Each test has its general rule along with several exceptions. Also, anyone claimed as a dependent on someone else's return is not entitled to his or her own personal exemption on their own return. Thus, for all parties concerned, it is important that the correct dependency exemption determination is made and that each party report consistently.