Dependents

My 21 yr old daughter is a new unmarried mother of twins. My daughter does not work and my husband and I provide for the babies. Do we meet the qualifications to claim the babies? Where can I get more information?
Thanks for your help :)

Sligon,

There are 5 tests that the "dependent" must pass in order to be
- Relationship, the person must be your relative.
- Citizen or Resident, the person must be a US citizen or a rsident alien or a resident of Canada or Mexico.
- Income, the person's gross income must be less than $3,100. If the person was under age 19 at the end of 2004 OR under age 24 at the end of 2004 and a Student, their income can be more than $31,00.
- You must have provided over half of the person's total support in 2004.
- If the person is married, he or she cannot file a joint return except to claim a refund and no tax liability would exist for either spouse had they filed separate returns.

It sounds like you can claim the twins as dependents.
And according to the chart on page 10 of the Pub 501, if your daughter had less than $3,100 of income you can claim her too.

To learn more, see IRS PUB 501, Exemptions, Standard Deductions and Filing Information.