OLT TAX CORNER ~ Exemptions

Beginning January 1, 2018, the personal exemption deduction has been suspended. There are two types of exemptions: personal exemptions and dependency exemptions. Each exemption reduces the income that is subject to tax by the exemption amount. Only one exemption can be claimed per person. An exemption for a particular person cannot be claimed on more than one tax return.

Personal exemptions can be claimed for the taxpayer and spouse.

Each personal exemption reduces the income that is subject to tax by the exemption amount.

* For 2021 tax year, the exemption amount is $4,050.

To claim a personal exemption for a spouse:

• The taxpayers must be married by the last day of the year, or
• the spouse must have died during the year, and the taxpayer must not have remarried during the year.

* On separate return, if married filing separately, spouse must have no gross income.

Dependency Exemptions

Beginning January 1, 2018, the dependency exemption deduction has been suspended. Remember that a dependent is a person other than the taxpayer who entitles the taxpayer to claim a dependency exemption.

To claim a dependency exemption, all of the dependency tests must be met. The five dependency tests are:

• Member of household or relationship test
• Citizen or resident test
• Joint return test
• Gross income test
• Support test

Each dependency exemption reduces the income that is subject to tax by the exemption amount. The exemption amount changes every year.

* For 2021 tax year, the exemption amount is $4,050.

A taxpayer cannot claim a personal exemption for the taxpayer or the spouse if he or she can be claimed as a dependent on another tax return.

You will need to file an amended return not claiming yourself, or claiming 0 exemptions. You will need to mail in your amended return. Once you do this, your parents will then need to mail in their return claiming you as a dependent. This will all need to be done by mail. And since your return claiming yourself was already accepted, your parents will not be able to e-file and claim you.