Dependent Exemption

You're allowed a $1,000 exemption for each qualifying dependent you claim. This exemption doesn't include you or your spouse.

Dependent means either:

A qualifying child

A qualifying relative

Federally, dependent exemptions are not allowed for those who would otherwise be dependents but also file their own income tax returns and claim personal exemptions.

For Massachusetts purposes, you may claim dependent exemptions for such people if they meet all of the tests listed below for dependency, even if they claim exemptions on their own returns.

You can only claim an exemption for a qualifying child if all 5 tests are met:

The child must be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or any of their descendants.

The child must be: Under age 19 at the end of the year Under age 24 at the end of the year and a full-time student, or Any age if permanently and totally disabled

The child must have lived with you for more than half of the year

The child must not have provided more than half of their own support for the year

If the child meets the rules to be a qualifying child of more than 1 person, you must be the person entitled to claim the child as a qualifying child.

You can only claim an exemption for a qualifying relative if all 4 tests are met:

The person cannot be your qualifying child or anyone else's qualifying child

The person must either be: Living with you all year as a member of the household (your relationship must not violate local law), or Must be related to you in 1 of the ways listed below: Your child, stepchild, eligible foster child, or any of their descendants. For example, your grandchild. A legally adopted child is considered your child. Your brother, sister, half brother, half sister, stepbrother, or stepsister Your father, mother, grandparent, or other direct ancestors, but not foster parent Your stepfather or stepmother A son or daughter of your brother or sister A brother or sister of your father or mother Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law

The person's gross income for the year must be less than an amount determined by the IRS

You must provide more than half of the person's total support for the year

To report the exemption on your tax return:

Enter the number of dependents you reported on U.S. Form 1040 into the box on your Form 1 (Line 2b) or your Form 1-NR/PY (Line 4b)

Multiply that amount by $1,000 and enter the total amount on Form 1 (Line 2b) or Form 1-NR/PY (Line 4b)