What Is the Joint Return Test?
Let me explain the joint return test to you directly—it's one of the key IRS tests that someone must pass to be claimed as a dependent on your tax return.
As the IRS states, you generally can't claim a married person as a dependent if they're filing a joint return. This test ensures that no dependent files a joint return with their spouse while still being claimed on someone else's return, like a parent's. But there's an exception I'll get into shortly.
Since claiming dependents can save you money, the IRS uses tests like this to prevent double-counting.
Key Takeaways
When you're figuring out if someone living in your home, whom you've supported and who hasn't earned income, qualifies as your dependent, you have to apply the joint return test.
In most situations, you can't claim someone as a dependent if they're filing a joint tax return with their spouse.
The exception applies if neither the potential dependent nor their spouse had enough income to owe taxes, but they filed just to get a refund of withheld wages.
Understanding the Joint Return Test
Under this test, you can only claim a taxpayer filing a joint return as a dependent if that return is filed solely to claim a refund of income tax withheld or estimated tax paid.
You may not claim a married person who files jointly with their spouse as a dependent, even if they earned nothing and lived with you, if the spouse had taxable income on that joint return.
Here's an IRS example: You supported your 18-year-old child who lived with you all year while their spouse was in the Armed Forces and earned $35,000. They file jointly—you can't claim the child as a dependent.
Another example: Your 18-year-old son and his 17-year-old wife had $800 in part-time wages and no other income. They lived with you, aren't required to file, have no child, and no taxes were withheld. But they file jointly to claim a $124 American opportunity credit and get that refund.
Since they're filing for the credit, not just a withheld tax refund, the exception doesn't apply, so you can't claim either as a dependent.
Joint Return Test for Claiming Dependents
The modern income tax started in 1913, with dependent deductions added in 1917.
Congress has long supported these deductions to encourage large families while keeping the tax system progressive. The original tax hit only the top 1%, but that could disadvantage bigger households needing more income.
This support continues, and the 2018 tax reform made claiming dependents more beneficial.
From 2018, if you claim a dependent under 17, you get a $2,000 tax credit per child, up from $1,000. Phase-out starts at $400,000 for married couples and $200,000 for singles, higher than the previous $110,000 and $75,000. This credit reduces your tax liability dollar-for-dollar, unlike a deduction that just lowers taxable income, making it especially valuable.
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