A legal guardian cannot claim a person as a dependent if that person earns an income that exceeds the amount of his exemption, according to the IRS, unless the dependent is a qualifying child or a relative who is disabled and earns passive income, such as unearned income from interest or dividend payments.

What is the deduction for claiming a dependent?

For tax years prior to 2018, every qualified dependent you claim, you reduce your taxable income by the exemption amount, equal to $4,050 in 2017. This add up to substantial savings on your tax bill. For tax years 2018 through 2020, exemptions have been replaced by: an increased standard deduction.

How to claim legal guardianship as a tax deduction?

Legal Guardianship as a Tax Deduction 1 Becoming a Legal Guardian. You can’t claim to be a guardian of a person on your tax return unless you have been appointed as such by whatever court handles matters 2 Dependent Children. 3 Dependent Adults. 4 Income Earned by a Dependent. …

Can a legal guardian claim a child as a dependent?

Legal guardians can claim children or incapacitated persons in their care as dependents on their tax returns, although taxpayers must be employed and meet filing status requirements to do so. A legal guardian can earn tax credits and deductions.

What are the rules for claiming dependents on taxes?

The Dos and Don’ts of Claiming Dependents. DON’T claim a child that has lived with you for less than six months of the year. Unless the child was born within the tax year, they must have lived with you at least six months of the tax year to fall under the qualifying child rules. If you have a child that lives with their mother…

Can a custodial parent claim a dependent on taxes?

DON’T attempt to claim a child for whom you have paid child support, but lives with you for less than half the year unless you have a Form 8332 signed by the custodial parent. For additional assistance with the tax rules for claiming a dependent, H&R Block has your back.