BIR Ruling [DA-154-99]

March 15, 1999 BIR RULING [DA-154-99] Ms. Remedios B. Bajo 430 Opal Street Filoville Subdivision Naga City M a d a m : This refers to your letter dated April 14, 1997 requesting that you be allowed to claim in your 1996 Income Tax Return additional exemption for the following: 1) Gertrudes P. Balisnomo your 82-year old mother living with you; 2) Jason Balisnomo your 13-year old nephew; son of your late brother who died 12 years ago; lived with you since he was 4 years old; his mother is jobless and remarried also jobless husband; has 4 other sisters and brothers; 3) Jeffrey B. Bajo 20-year old son; 4th year college student taking up Engineering at UP Diliman, Q.C.; enjoys 75% scholarship bracket on tuition; 4) Wilhelmina B. Bajo 22-year old daughter; 4th year B.S. Accounting at the Ateneo de Naga, Naga City; and 5) Janette B. Bajo 24-year old daughter; 1st year Medicine; on full scholarship for tuition only. In reply, please be informed that Section 29(1)(2) of the Tax Code, as amended, provides, to wit: "(2) Additional Exemption. (A) Taxpayers with dependent. A married individual or head of family shall be allowed an additional exemption of Five Thousand Pesos (P5,000) for each dependent: "xxx xxx xxx "For purposes of this paragraph, a dependent means a legitimate, recognized natural or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect." Following the definition of a "dependent," your son Jeffrey Bajo who is not more than twenty-one (21) years of age is a qualified dependent. You may therefore claim additional exemption for him. In this connection, please take note that as a rule, the husband claims deductions for additional exemptions unless he makes a waiver in favor of his wife using the W-Form (Withholding Exemption Certificate). However, your claim for additional exemption for your children Wilhelmina Bajo and Janette Bajo, your mother, Gertrudes P. Balisnomo, and your nephew, Jason Balisnomo must be denied for lack of legal basis. (BIR Ruling No. 61-95 dated March 27, 1995) LibLex Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)