What it is:
A dependent relies on someone else for most or all of his or her financial
How it works (Example):
In general, dependents are exemptions that reduce a's . typically can take an exemption for each of his or her dependents. Spouses are not considered dependents from a tax perspective.
To claim someone as a dependent, the dependent must be a U.S. citizen, a U.S. resident alien, a U.S. national resident, or a resident of Canada or Mexico for some part of the Social Security numbers for all dependents.. Adopted children have some special exceptions to this rule. The filer must provide
People who are dependents on another person's
Why it Matters:
The presence and number of dependents affect a's tax liabilities and eligibility for public assistance programs such as welfare and food stamps. As mentioned, dependents increase the number of exemptions a taxypayer receives.