What Does 152 Mean on Your Tax Return?
Navigate complex tax forms with ease. Discover how a specific detail can influence your financial outcome and obligations.
Tax returns often present numbers and codes that can be perplexing. These designations serve as internal references for specific tax laws, forms, or guidance from the Internal Revenue Service (IRS). Understanding these indicators can clarify your tax obligations and potential benefits. This article demystifies one common reference found on tax documents.
Understanding “152”
The number “152” on a tax return refers to IRS Publication 152. Titled “Who Can Be Claimed as a Dependent,” this publication provides guidance on the rules and criteria for claiming someone as a dependent. It details the conditions that must be met for an individual to qualify, which impacts eligibility for various tax benefits. By referencing this publication, taxpayers can determine if they correctly claim individuals on their returns.
Dependent Eligibility Requirements
To claim someone as a dependent, specific criteria must be satisfied, falling under two main categories: a Qualifying Child or a Qualifying Relative. A qualifying child must meet relationship, age, residency, and support tests. They must be your child, stepchild, foster child, sibling, or a descendant of any of these, and be under age 19, or under 24 if a full-time student, or any age if permanently and totally disabled. The child must have lived with you for more than half the year. The child cannot have provided more than half of their own financial support for the year.
A qualifying relative must meet specific tests. The individual cannot be your qualifying child or the qualifying child of any other taxpayer. They must either live with you all year as a member of your household or be a specific type of relative, such as a parent, grandparent, or in-law. Their gross income must be less than $5,050 for the 2024 tax year, increasing to $5,200 for 2025. You must also provide over half of their total financial support for the year.
Tax Benefits of Claiming a Dependent
Claiming a dependent can lead to several tax advantages. One benefit is eligibility for the Child Tax Credit. For the 2024 tax year, this credit is worth up to $2,000 per qualifying child under age 17, increasing to $2,200 for 2025. A portion of this credit, known as the Additional Child Tax Credit, is refundable, allowing eligible taxpayers to receive up to $1,700 per qualifying child for 2024 and 2025, even if they owe no tax. To claim the refundable portion, your earned income must exceed $2,500.
For dependents who do not qualify for the Child Tax Credit, such as adult relatives, the Credit for Other Dependents may be available. This nonrefundable credit can reduce your tax liability by up to $500 for each qualifying dependent. The credit begins to phase out when modified adjusted gross income exceeds $200,000 for single filers or $400,000 for those married filing jointly. Claiming a dependent can also influence your filing status, potentially allowing you to file as Head of Household if you meet the specific requirements, which results in a larger standard deduction and more favorable tax brackets.