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Exemptions and Your Tax Return
Larry Denton
In general, you can deduct $3,200 for each exemption you claim in 2005. You may be able to take an additional exemption amount if you provided housing to a person displaced by Hurricane Katrina. For more information about that particular circumstance refer to IRS Publication #4492.
There are two types of exemptions: personal exemptions and exemptions for dependents. If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim his or her personal exemption on his or her own tax return.
Personal Exemptions: You can claim your own exemption unless someone else can claim it. If you are married, you may be able to take an exemption for your spouse. These are called personal exemptions.
Your spouse is never considered your dependent, but you may be able to take an exemption for your spouse because you are married. On a joint return, you can claim one exemption for yourself and one for your spouse. If your spouse had any gross income, you can claim his or her exemption only if you file a joint return.
If your spouse is the dependent of another taxpayer, you cannot claim an exemption for your spouse even if the other taxpayer does not actually claim your spouse's exemption.
If you paid alimony to your spouse, you cannot take an exemption for your spouse simply because alimony is considered as gross income to the spouse who received it.
If you obtained a final decree of divorce or separate maintenance by the end of the year, you cannot take your former spouse's exemption. This rule applies even if you provided all of your former spouse's support.
Exemptions for Dependents
You are allowed one exemption for each person you can claim as a dependent. You can claim an exemption for a dependent even if your dependent files a return.
Beginning in 2005, the term “dependent” means: a qualifying child, or a qualifying relative.
For detailed information about the tests that must be met to be either a qualifying child or qualifying relative, plus the additional requirements for claiming an exemption as a dependent refer to IRS Publication #501.
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