Thursday, April 12, 2012

Who are the Qualified Dependents under BIR?

Qualifications on dependents under BIR policy
(Cinemagraph by Jamie Beck & Kevin Burg)

Not all dependents can claim to for additional 25,000 pesos additional exemption. That is the why the term being used is QUALIFIED DEPENDENT CHILD (QDC).

To know more do read on.


The most common concern regarding this, that if one can claim his/her parents as their dependents or their brother or sisters, cousins or any immediate relative that they say they support.

Furthermore, some also claim cases where they support their brother or sister who is mentally incapacitated or physically unable to work and needs support.


BIR states in RR 10-2008 "An individual whether single or married, shall be allowed an additional exemption of 25,000 pesos for each QUALIFIED DEPENDENT CHILD (QDC), provided that the total number of dependents shall not exceed four (4) dependents. The additional exemptions for QDC shall be claimed by ONLY ONE of the spouses in the case of married individuals."

DEPENDENT CHILD means a legitimate, illegitimate or LEGALLY ADOPTED CHILD chiefly dependent upon and living with the taxpayer if such dependent is not more than 21 years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect. (Taken from RR 10-2010)

This provision disallows our parents to be our dependents based on term "QUALIFIED DEPENDENT CHILD or CHILDREN (QDC)". 

If a person claims his brother or sister or relative as his/her dependent who is not over the age of 21 and is living with them. They need to be LEGALLY ADOPTED. Otherwise they cannot be qualified as dependents per se.

For those dependents regardless of age who is INCAPABLE of SELF SUPPORT due to MENTAL or PHYSICAL DEFECT. These type of dependents can be qualified provided one can show proof thru a CERTIFIED MEDICAL DOCUMENT attesting to said "MENTAL or PHYSICAL DEFECT".

Do understand that any claim of QDC for additional exemptions will be ascertained by the employer thru BIR Form 2305 which one will file with regards to this update of additional exemption.

32 comments:

  1. Hi! I'm Len of Caloocan City. My current status is ME3. I gave birth last December of 2007. I will submit form 2305. Will i still be able to claim tax reimbursement from 2007-2012?

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  2. Hi Tomtax, thanks for this post. It's very helpful.

    This is my first job and I got my form 1905 stamped for transfer to new RDO.

    I am single. I have no wife. No children so No QDC.

    Should I declare that I am the head of the family? (living with parents) If yes then how?

    DO I still need to process form 2305 for Personal Exemptions (P50,000)?







    ReplyDelete
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    1. This comment has been removed by the author.

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    2. Hi! Single, Head of the Family or Married Employee without QDC (Qualified Dependent Child/Children) have the same amount of personal exemption which is Php50,000. Even if you declare as Head of the Family your status in your 2305, your personal exemption would still be Php50,000 if you don't have any qualified dependent. QDC pertains only to dependent child/children who is legitimate, illegitimate or LEGALLY ADOPTED CHILD chiefly dependent upon and living with the taxpayer if such dependent is not more than 21 years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect.

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  3. hello i am leeh of olongapo your blog is very helpful. though still need answer about my status i am single male but have a one child my daughter i want to add her as one of my dependent. how can i file? is it possible for me to add my child as my dependent? thanks in advance...

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  4. can i include my senior citizen mom as my dependent? thanks

    ReplyDelete
    Replies
    1. Sad to say but No. QDC means Qualified Dependent Child/Children. "This provision disallows our parents to be our dependents based on term "QUALIFIED DEPENDENT CHILD or CHILDREN (QDC)".

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  5. tomtax, how about stepchildren under age 21? can i claim them as dependents, even though i have not adopted them?

    thanks

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    Replies
    1. you have to LEGALLY ADOPT your step children for them to qualify as QDC otherwise you cant claim them as your dependents

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  6. Hello there,

    May I ask if my two brothers who are mentally incapacitated for long years because of their schizophrenia, are they allowed to be my qualified dependent? My parents had their own families and we are totally abandoned. And I'm the one who provides their food, medicines, monthly checkup expenses, etc.

    If they are qualified, what form should I be going to use to submit to BIR?

    Thank you. Your help is much appreciated. God bless!

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  7. hi. my name is mark and this is my 1st job. turning 2 years this june. and we have a child but we're not married. what should i do t oapply my kid as my dependent?

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  8. I just gave birth. Can I add my son to be QDC?

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  9. How about if the parents are senior citizen already and no permanent job. Can I declare myself as head of the family so that my tax can lessen.?.(Coz u didn't mention the age of parents). Thanks.

    ReplyDelete
  10. How about if the parents are senior citizen already and no permanent job. Can I declare myself as head of the family so that my tax can lessen.?.(Coz u didn't mention the age of parents). Thanks.

    ReplyDelete
  11. How about if the parents are senior citizen already and no permanent job. Can I declare myself as head of the family so that my tax can lessen.?.(Coz u didn't mention the age of parents). Thanks.

    ReplyDelete
  12. This comment has been removed by the author.

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  13. hi may I ask how can I LEGALLY ADOPT my brother?

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  14. I am single. My father is 61 yrs old, suffering from stroke, no pension and no work. Can I include him as my dependent?

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  15. What is the specific guidelines of not above 21 yrs old dependent? It seems to be a tricky guidelines. If the child turns 21 on her birthday on july 1st 2015, so by the following day of july 2 he is no longer qualified as dependent as he turned a day older than 21?

    ReplyDelete
    Replies
    1. If a child turns 21 within the year (any month w/in the year). The dependent is still qualified for the whole year. Same applies, if the child is born December 2016, the child is qualified as dependent for the whole 2016.

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    2. accurately said. thanks Arvin.

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  16. Gusto ko po sanang magtanong.

    Kapag ang isang matandang lalaki po ba ay nakapangasawa ng biyuda na mayroong tatlong anak, at parehas po sila ng trabaho at gross annual income pero nagkakatalo sila sa mandatory deductions (Yung babae ay mayroong total mandatory deductions na mas malaki kaysa nung sa lalaki).

    Kanino po mapupunta yung exemption status na: Married Employee with 3 dependent children? Sa lalaki po ba o sa babae? Maraming Salamat po.

    ReplyDelete
    Replies
    1. once married the dependents goes to the husband. Unless the husband executes a waiver signifying his decision to waive the additional exemptions in behalf of his wife.

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  17. gusto ko po sanang magtanong kung pwdeng maging qualified dependent yung pamangkin kong bata na pinag-aaral ko? Kaya lang po ay Married ako.

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  18. Hi,

    im married with 4 kids, ung husband ko is just staying at home to take care of the kids, so 100% unemployed po sya, nag sign narin sia ng SWORN DECALRATION AND WAIVER OF RIGHT TO CLAIM EXEMPTIONS OF QDC, my question is... pwede ko po bang gawing dependent ung asawa ko? so magiging lima na dependents ko kung sakali... please help. thanks.

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  19. Hi! Thank you for the informative post. I wouldjust like to clarify "...dependent is not more than 21 years of age, unmarried and not gainfully employed..."
    My son is 21 years old and still a student. He should still be considered as one of my dependents, or not? I might be wrong but as I understand it, not more than 21 y/o includes 21-y/o children. My company is asking me to have my tax status updated. Any response/clarification would be greatly appreciated. Thank you.

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  20. Hello ask ko Lang so brand lake kasi ng tax ko Naka single status PA din kc ako khit may baby na ko he is 1 year and 6months. Hindi ako kasal PA sa dad nya ung dad nya is Filipino pero American citizen and works and living in the US.

    Ano po ba pwede ko gawin Para MA add si baby as my dependent? Also my parents who are both senior citizens are living with me.

    Tingin nyo po possible na MA add ko sila baby at parents ko?

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  21. The father of my child included my son as his dependent befor but he doesn't live now with us because we got separated. Same scenario applies with his first live-in partner. Is it possible for us to have BIR to delete our children from being dependents bec he doesn't support his children at all? Thank you

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  22. What if my registered dependent died?

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  23. I am currently the breadwinner of the family. My father already passed away while my mother has no job or generated income. I have five (5) siblings and four (4) of them is under 21 years of age and all are currently studying. Can I declare my four (4) under 21 y/o siblings as my qualified dependent since I am the one who provide them everything?
    Thanks!

    ReplyDelete
  24. hello! can the husband claim his daughter as dependent even if he's not married yet to the mother of her child?

    ReplyDelete

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