Taxes & Travel & others

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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.

8 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?

    ReplyDelete
  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
    Replies
    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

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    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

    ReplyDelete

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