Common questions about entering dependents in Lacerte

How do I add a dependent for an amended return?

1. Open Screen 2, Dependents.
2. In the respective input fields, enter the dependent's name, date of birth, social security number, and relationship to the taxpayer.
3. Select the Added for Form 1040X check box

How do I indicate the taxpayer was claimed by someone else?

1. Open Screen 1, Client Information.
2. In the Section list, select Taxpayer Information.
3. In Dependency Status:
   • Select Taxpayer could be dependent if the taxpayer can be claimed as a dependent on another person's tax return but is not listed as a dependent in the Exemptions section on another person’s tax return. OR
   • Select Taxpayer claimed as dependent if the taxpayer is claimed as a dependent on another person’s tax return (i.e. listed as a dependent in the Exemptions section on another person’s tax return).

Note: Either selection disallows the taxpayer's personal and dependent's exemptions on Form 1040 and limits the standard deduction according to the Standard Deduction Worksheet in the Form 1040 instructions. Selecting Taxpayer claimed as dependent also disallows the education credits, student loan interest deduction, and retirement savings contributions credit.

Requirements for claiming a qualifying relative as a dependent

There are four tests that must be met for a person to be your qualifying relative:

1. The person can't be your qualifying child or the qualifying child of any other taxpayer.
   • There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children.
2. The person either (a) must be related to you in one of the ways listed under relatives who don't have to live with you, or (b) must live with you all year as a member of your household (and your relationship must not violate local law).
3. The person's gross income for the year must be less than $4,050.
   • There's an exception if the person is disabled and has income from a sheltered workshop.
4. You must provide more than half of the person's total support for the year.
   • There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children.

For additional information, refer to IRS Pub. 17.

How do I indicate a HOH (Head of Household) status for a qualifying person who is not a dependent?

1. Go to Screen 1, Client Information.
2. Select Head of Household in Filing Status.
3. Go to Screen 2, Dependent Information.
4. Enter the name of the qualifying person as well as their social security number, relationship and date of birth.
5. From the drop down for Type choose Head of household only, Not a dependent.

This will check the box on line 4, "Head of household (with qualifying person).  (See instructions.)  If the qualifying person is a child but not your dependent, enter this child's name here.".  It will also pull the name of the qualifying person entered to this line per the Form 1040 instructions.

Related topics

• Previously Deleted Dependent is Generating Missing Information Diagnostics
• Diagnostic Ref. 45608 Dependent Excluded From Child Tax Credit Due to Invalid SSN