- Child born alive - If your child was born alive during the year, and the exemption tests are met, you can take the full exemption. This is true even if the child lived only for a moment. Whether your child was born alive depends on state or local law. There must be proof of a live birth shown by an official document, such as a birth certificate. You cannot claim an exemption for a stillborn child.
- Death of dependent - If your dependent died during the year and otherwise qualified as your dependent, you can take an exemption for your dependent.
Exception - The joint return test does not apply if a joint return is filed by the dependent and his or her spouse merely as a claim for refund and no tax liability would exist for either spouse on the basis of separate returns.
Example - Your son and his wife each had less than $2,000 of wages and no unearned income. Neither is required to file a tax return. Taxes were taken out of their pay, so they file a joint return to get a re-fund. You are allowed to take exemptions for your son and daughter-in-law if the other exemption tests are met.