A dependent as defined under Alabama law is an individual other than the taxpayer and his or her spouse who received over 50% of his or her support from the taxpayer during the tax year and is also related to the taxpayer in one of the following relationships:
- Legally adopted child
- If related by blood: Uncle, Aunt, Nephew, or Niece
Note: You cannot claim a foster child, friend, cousin, yourself, or your spouse as a dependent under Alabama law.
You can take an exemption for a dependent who was born or who died during the tax year if he or she met the qualifications for a dependent while alive. This means that a baby who lived only a few minutes can be claimed as a dependent.
You must have provided over 50% of the dependent’s support during the tax year . If you file a joint return, the support can be from you or your spouse. You cannot claim credit on an Alabama return for a dependent if you provided less than 50% of the support under Alabama law as you can under federal law in certain conditions.
In figuring total support, you must include money the dependent used for his or her own support even if this money was not taxable (for example: gifts, savings, welfare benefits). If your child was a student, do not include amounts he or she received as scholarships.
Support includes items such as food, a place to live, clothes, medical and dental care, recreation, and education.
In figuring support, use the actual cost of these items. However, the cost of a place to live is figured at its fair rental value.
In figuring support, do not include items such as income taxes, social security taxes, premiums for life insurance, or funeral expenses.