How much can a dependent make in 2018?

Forum|Forum|7 years ago
June 4, 2019
13 replies
35 views

In 2017, a dependent can make up to $4,050, the amount for personal exemption. But with the repeal of personal exemption in 2018, does anyone know the income limit for an elderly parent?

DawnC0

Level 12

In 2018, the personal exemption goes away, but there will be a taxable income limit of $4,150 (up from $4,050 in 2017) for qualifying relative dependents. Although there is no personal exemption, there is an ''Other Dependent Credit'' of $500 available for 2018.

The limit applies to Qualifying Relatives; there is no limit for Qualifying Children, see below.

Qualifying child

They are related to you.
They aren't claimed as a dependent by someone else.
They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
They aren’t filing a joint return with their spouse.
They are under the age of 19 (or 24 for full-time students).
- No age limit for permanently and totally disabled children.
They live with you for more than half the year (exceptions apply).
They didn't provide more than half of their own support for the year.

Qualifying relative

They don't have to be related to you (despite the name).
They aren't claimed as a dependent by someone else.
They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
They aren’t filing a joint return with their spouse.
They lived with you the entire year.
They made less than $4,150 in 2018.
You provided more than half of their financial support.

If your parent and/or dependent earns over $12,000 in 2018, they will file their own return.

[Edited January 30, 2018] | 6:55 PST

lianying1103Author

Level 2

Thanks Dawn! But are you sure there is no benefits in claiming an elderly parent as dependent in 2018? Did they take away the tax bracket for head of household? My tax are usually lower being a head of household for claiming my parent as dependent.