WHAT DOES “PERSONAL EXEMPTIONS” MEAN?
- Personal exemption of P50,000 for :
- single/widow/widower individual or married individual judicially decreed as legally separated with no qualified dependent
- head of family
- for each married individual
2. Additional exemption of P25,000 for each dependent child (not exceeding four)
*In the case of :
- married individuals ONLY ONE of the spouses can claim the additional exemptions.
- legally separated spouses, the additional exemption shall be allowed to the spouse who has legal custody of the child or children
WHO IS A DEPENDENT CHILD?
A dependent child is a:
- legitimate, illegitimate or legally adopted,
- living with you,
- dependent upon you for chief support,
- not more than 21 years of age,
- unmarried, and
- not gainfully employed.
* If your child is incapable of self-support because of mental or physical defect, you can still claim him as a dependent REGARDLESS OF AGE
WHICH SPOUSE CAN CLAIM THE ADDITIONAL EXEMPTION?
The husband has the right to claim the additional exemption for your dependent children.
These are the following cases wherein the wife can claim the additional exemptions:
- When the husband is unemployed,
- When the husband is a non-resident citizen deriving income from abroad, and
- When the husband waives his right to claim the dependents as his exemption in a sworn statement. Take note that the waiver should be for all children.
I AM LEGALLY SEPARATED. CAN I CLAIM THE ADDITIONAL EXEMPTION FOR DEPENDENT CHILDREN?
If you are legally separated, you can claim your children as your additional exemption provided you have been awarded custody of your children.
I CHANGED STATUS DURING THE YEAR. WHAT ARE THE RULES ON CHANGE OF STATUS IN RELATION TO EXEMPTIONS?
The rules on change of status are:
- If the taxpayer should have additional dependent during the taxable year, the taxpayer may claim the corresponding additional exemption in full for such year. For example, if your wife gave birth on December 31, 2014, you can claim an additional exemption of P25,000 for your newborn in full for such year.
- If the taxpayer dies during the taxable year, his estate may still claim the personal and additional exemptions for himself and his dependents as if he died in the close of such year.
- If any dependent dies, marries, become 21 years old or becomes gainfully employed during the taxable year, the taxpayer may still claim the same exemptions, as if the dependent died, married, became 21 years old or became gainfully employed at the close of such year.