An Act Providing Additional Benefits to Families with Dependents, Supporting Aging Parents and Persons with Disabilities

• Removes the current limitation of four (4) on the number of qualified dependents that a taxpayer may claim for tax deduction
• Includes the category of legitimated children in the scope of qualified dependent children, whereby a child conceived and born outside of wedlock, under certain conditions, may be legitimated
• Expands the coverage of qualified dependents to include parents or both parents with the following conditions:
  • The parent or parents should not be gainfully employed, they should be living with the taxpayer, and dependent upon the taxpayer for chief support; or
  • Such parent or parents are incapable of self-support because of mental or physical disability
• Proposes that taxpayers who act as legal guardian of a person with mental or physical disability, regardless of age and incapable of self-support, may claim the additional exemption for the said dependent
• Provides penalties for any person who willfully declares fictitious dependents

Download PDF