Mr. E and Ms. F are both employees of AAA Corp. They got married on February 14, 2011. On December 29, 2011, the couple gave birth to triplets. On June 25, 2013, they had twins. What were the personal exemptions/deductions which Mr. E and Ms. F could claim in the following taxable years:
a) For2010 (2%)
b) For 2011 (3%)
c) For 2013 (2%)
Suggested answer only. Not an official answer and not legal advice.
(a) 2010: ₱50,000 basic exemption each. (b) 2011: ₱50,000 basic each, plus ₱75,000 additional exemption for 3 triplets for Mr. E. (c) 2013: ₱50,000 basic each, plus ₱100,000 additional exemption for 4 children for Mr. E.
Under Sec. 35, NIRC (pre-TRAIN), taxpayers receive ₱50,000 basic personal exemption each. Additional exemptions of ₱25,000 per qualified child (max 4 children) belong to the husband.
(a) 2010: Each claimed ₱50,000 basic exemption. (b) 2011: Each claimed ₱50,000 basic exemption, and Mr. E claimed ₱75,000 for 3 triplets. (c) 2013: Mr. E's additional exemption for 5 children was capped at 4 dependents (₱100,000).
Thus, basic exemptions applied separately per spouse, while additional exemptions were capped at 4 children for Mr. E.
This is not an official scoring system and carries no weight with the Supreme Court or any bar review provider. It measures how much of the suggested answer's wording your response covers, not whether your reasoning is correct. For practice only.
Quick check
What was the basic personal exemption amount allowed for individual taxpayers under pre-TRAIN Section 35(A) of the NIRC?
Under pre-TRAIN Section 35(A) of the NIRC, every individual taxpayer was entitled to a basic personal exemption of fifty thousand pesos.
Under Section 35(B) of the pre-TRAIN Tax Code, how much was the additional exemption for each qualified dependent child?
Pre-TRAIN Section 35(B) allowed an additional exemption of twenty-five thousand pesos for each qualified dependent child.
What was the maximum number of qualified dependent children for which an additional exemption could be claimed under pre-TRAIN rules?
Under pre-TRAIN Section 35(B), the additional exemption for qualified dependents was capped at a maximum of four children.
As a general rule under pre-TRAIN Section 35(B), which spouse was entitled to claim the additional exemption for qualified dependent children?
Under pre-TRAIN Section 35(B), the husband was primarily entitled to claim additional exemptions for qualified dependent children.
If a married couple had five qualified dependent children in 2013, what was the maximum total additional exemption allowed under pre-TRAIN tax law?
The total additional exemption was capped at one hundred thousand pesos representing the maximum ceiling of four qualified dependent children.
Learn more about these topics
1. Basic Personal Exemption
Under Section 35(A) of the pre-TRAIN National Internal Revenue Code, individual taxpayers, whether single or married, were allowed a basic personal exemption of fifty thousand pesos each. For married individuals earning compensation income, each spouse was entitled to claim the basic personal exemption separately against their respective taxable income returns.
2. Additional Dependent Exemption
Under Section 35(B) of the pre-TRAIN Tax Code, a married taxpayer was entitled to an additional exemption of twenty-five thousand pesos for each qualified dependent child, up to a maximum of four children. As a general rule, the additional exemption for qualified dependents belonged exclusively to the husband unless explicitly waived in writing in favor of the wife.
3. Dependent Exemption Cap
The pre-TRAIN Tax Code limited the allowable additional exemption for qualified dependents to a statutory ceiling of four children. Even if a married couple had five or more qualified dependent children, the claiming parent could only deduct a maximum aggregate additional exemption of one hundred thousand pesos from gross income.