Solon wants age of taxpayers’ dependents raised from 21 to 23 years due to K to 12

MANILA — A lawmaker is seeking to increase the age bracket of household members considered as tax dependents from 21 to 23 years old, in light of the K to 12 program, which added two year levels to the country’s educational system.

Rep. Eric Olivarez (1st District, Parañaque City) said a person affected by the K to 12 Law is now expected to complete his or her education at age 23 on the average, instead of 21.

Olivarez explained that the family’s income earners would have to sustain the education of their children two years longer than before.

Hence, the need to amend the sections of the National Internal Revenue Code (NIRC) that provide for the age limit of household members who may qualify as tax dependents, he said.

The lawmaker said the NIRC provides certain tax exemptions to avoid burdening a taxpayer who has to provide for household members who are unable to support themselves.

“The State understands that an income-earner has an obligation first and foremost to his or her family and the latter supports or assists the former by imposing lesser taxes accordingly,” said Olivarez.

In House Bill 183 or the proposed “An Act Increasing the Age Bracket of Taxpayers’ Dependents”, Olivarez proposed amendments to Section 35 items (A) and (B) of the NIRC, as amended by Republic Act 9504 titled Allowance of Personal Exemption for Individual Taxpayer.

The bill has been referred to the House Committee on Ways and Means.

The proposed amendments provide that there shall be allowed a basic personal exemption amounting to PHP50,000 for each individual taxpayer.

Moreover, there shall be allowed an additional exemption of PHP25,000 for each of four dependents. The additional exemption for a dependent shall be claimed by only one of the spouses in the case of married individuals.

In the case of legally separated spouses, only the spouse who has custody of the child or children may claim additional exemptions. The total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions allowed. PNA/