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
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 . Adopted children have some special exceptions to this rule. The filer must provide Social Security numbers for all dependents.
People who are dependents on another person's may still have to file their own tax returns. This depends on how much they earn, how old they are and other . Dependents cannot claim any personal exemptions on their tax returns.
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.