From Investopedia.com…
Claiming a dependent on your tax return makes all the difference when it comes to taxes. Adding a dependent on your tax return increases the exemption amount you can claim, which in turn reduces your taxable income and your tax liability. Dependents can also be used to gain tax benefits like the child and dependent care credit and head of household filing status. Before claiming someone as a dependent on your tax return, you have to make sure that the person meets all the Internal Revenue Service (IRS) requirements for a dependent.1
