Can You Claim 1 for Yourself on Your Taxes?

The End of Personal Exemptions

For many years, taxpayers in the United States could claim a personal exemption for themselves, their spouse, and each dependent, which directly reduced their taxable income. However, the Tax Cuts and Jobs Act (TCJA) of 2017 significantly changed this aspect of federal tax law. The TCJA eliminated personal exemptions by setting the exemption amount to zero for tax years 2018 through 2025. Consequently, taxpayers can no longer claim a personal exemption for themselves or any other individual on their federal tax returns as they could in previous tax years.

The Standard Deduction and Its Impact

The elimination of personal exemptions coincided with a substantial increase in the standard deduction, which serves to reduce a taxpayer’s taxable income without requiring them to track specific expenses. For the 2024 tax year, the standard deduction is $14,600 for single filers and married individuals filing separately. Married couples filing jointly and qualifying surviving spouses can claim a standard deduction of $29,200, while heads of household can claim $21,900.

These increased amounts for the standard deduction mean that fewer taxpayers find it beneficial to itemize their deductions. Taxpayers generally choose the larger of either the standard deduction or their total itemized deductions to minimize their taxable income. Itemized deductions, which include expenses such as state and local taxes, mortgage interest, and charitable contributions, must be meticulously documented. For those aged 65 or older or who are blind, an additional standard deduction amount can be claimed, further increasing their tax benefit.

The Internal Revenue Service (IRS) adjusts the standard deduction amounts annually for inflation, ensuring their value is maintained over time. The shift towards a higher standard deduction has simplified tax filing for many by reducing the need to collect and report numerous individual expenses. For example, for the 2025 tax year, the standard deduction for single filers is projected to be $15,000, and for married filing jointly, it will be $30,000.

Understanding Dependent Claims

While personal exemptions for oneself and others have been eliminated, the ability to claim individuals as dependents for other tax benefits remains a part of the tax code. The IRS categorizes dependents into two main types: a “qualifying child” and a “qualifying relative.” Each category has specific tests that must be met to claim them. Claiming a dependent can qualify the taxpayer for various credits, such as the Child Tax Credit.

To be considered a “qualifying child,” an individual must meet several criteria, including relationship, age, residency, support, and joint return tests. The relationship test requires the individual to be the taxpayer’s child, stepchild, foster child, sibling, or a descendant of any of these. For the age test, the child must be under 19 at the end of the tax year, under 24 if a full-time student, or permanently and totally disabled at any age.

The residency test generally requires the child to have lived with the taxpayer for more than half the year, though exceptions exist for temporary absences like schooling or medical care. Additionally, the child must not have provided more than half of their own financial support for the year, and they cannot file a joint tax return.

Conversely, a “qualifying relative” is an individual who is not a qualifying child. This category also involves several tests: the person must either live with the taxpayer all year as a member of their household or be related in specific ways, such as a parent, grandparent, or certain in-laws. The gross income of a qualifying relative must be less than $5,050 for the 2024 tax year. Furthermore, the taxpayer must provide more than half of the qualifying relative’s total financial support for the year.

Other Individual Tax Benefits

Beyond the standard deduction and dependent claims, numerous other tax benefits are available to individual taxpayers, designed to reduce their overall tax liability based on specific circumstances. One significant benefit is the Earned Income Tax Credit (EITC), which is a refundable tax credit for low to moderate-income working individuals and families. Eligibility for the EITC depends on factors like earned income, adjusted gross income, and the number of qualifying children, if any.

Education tax credits also offer substantial relief for those pursuing higher education or vocational training. The American Opportunity Tax Credit, for example, helps cover qualified education expenses for eligible students during their first four years of post-secondary education. The Lifetime Learning Credit, another education benefit, can be used for undergraduate, graduate, or vocational courses taken to acquire job skills or for degree programs, and it has no limit on the number of years it can be claimed.

Furthermore, individuals may be eligible for deductions such as the student loan interest deduction, which allows taxpayers to deduct interest paid on qualified student loans. This deduction helps reduce taxable income for those managing education debt.