Personal and Additional Exemptions 2

Continuing from the previous post and its related articles as well as the first article on personal and additional exemptions, we now move to other important notes on the same subject matter.

Children

1.) A legitimate child is one born into the marriage

2.) A legally adopted child is one who is adopted by virtue of a court order

3.) A recognized natural child is one whose parents aren't married but have the legal capacity to marry

4.) A spurious child is one born out of wedlock and one or both of his/her parents is/are married to someone else

The Family code, which replaced the Civil Code's provisions on family relations, made no distinction as to the kinds of illegitimate children. A taxpayer is entitled to claim the additional Php25,000 per year exemption per child if:

1.) The child is either legitimate, illegitimate or legally adopted

2.) The child lives with the taxpayer

3.) Is not more than 21 years old (but take note of #6)

4.) Isn't married

5.) Isn't gainfully employed (see #6)

6.) Is incapable of self-support because of a mental or physical defect (in this case, age won't matter)

If the parents are legally separated, the one who has custody over the children can claim the exemption.

Senior Citizens

Under RA 7432, qualified senior citizens can be claimed as dependents. But under RA 9504, which supersedes RA 7432, it makes no difference anymore; with or without a senior citizen as a dependent, the taxpayer can still claim the annual personal exemption of Php50,000.