Dependent

A person whom is supported by another individual, who is able to claim a dependency credit on his or her tax return. In 2007, each claimed dependent was worth a $3,400 exemption on taxable income. For 2008, each dependent will be worth $3,500 (adjusted for inflation).

For every dependent under age 17, his or her parent is eligible to claim a $1,000 tax credit. Higher-income taxpayers may lose up to two-thirds of the value of the personal exemption, bringing its value down (for instance, 2007 taxpayers with AGI over $234,600 on joint returns were eligible for a credit of only $1,133). In 2008 and 2009, however, no one more than one-third of the value of the exemption can be taken away.

In order to qualify as a dependent, an individual must pass the following tests:

1. Relationship or member of household test
2. Citizenship test
3. Joint return test
4. Gross income test
5. Support test