How Many Dependents Should I Claim?
Filing your taxes can be rewarding if you understand all the benefits you can take advantage of, especially if you're one of the lucky taxpayers who can claim dependents. Each dependent you claim is a sure way to reduce your taxes as long as you understand who gets the green light on your tax return. The rules can be a bit cumbersome, but you'll want to pay attention to them all because the people you least expect may qualify as a dependent and save you thousands of dollars.
In a nutshell, a dependent is someone you support. Prior to the implementation of the 2017 Tax Cuts & Jobs Act, you were able to receive a personal exemption for claiming dependents, allowing you to score $4,050 for each person on your return in 2017. These personal exemptions have been suspended from 2018 to 2025 in favor of standard deduction amounts that are nearly double what they used to be.
IMAGE SOURCE: GETTY IMAGES.
Source Fool.com
