When you have dependents, the amount of your refund is affected by many factors.
- First, your dependent must be a qualifying child to count for refundable tax benefits. If the dependent is not a qualifying child, the only effect of adding a dependent is to reduce your taxable income.
- If you are adding a qualifying relative - a dependent too old to count as a qualifying child or not related to you by the IRS rules - they will only affect the result if you have taxable income. If your standard deduction plus exemptions exceed your taxable income, you will not see a change in your refund as you add more qualifying relatives.
For example, let's say you have been supporting a friend and her child all year, and they have no income. Because they are not related to you, both are your qualifying relatives. You must file single, your standard deduction would be $6300, and the three personal exemptions would be $12,150, for a total of $18,450. If your income for the year was only $14,400, adding your friend's child would not affect your refund.
For more information, see rules
for claiming a dependent on your tax return.
