In conclusion, the support test plays a crucial role in claiming qualifying relatives as dependents. Taxpayers should consider all sources of income and financial contributions to ensure they meet the requirement of providing more than 50% of their relative’s total support during the tax year. The next section will discuss examples of qualifying relatives and how these situations can impact your tax return. The declaration statement must include the calendar years for which the waiver applies, the name of the qualifying dependent, and each taxpayer’s name, address, and social security number who could have claimed the exemption. These written declarations should be retained by the taxpayer claiming the exemption, so that they are available if the IRS requests them since they are not filed with the tax return.
A qualifying relative must be a U.S. citizen or resident alien, related to you through blood, marriage, or adoption, and meet income and support tests. They cannot file a joint return for the tax year in question, nor can they claim any dependents. For more details, consult the IRS guidelines on qualifying relatives provided in Publication 501. In summary, a qualifying relative is someone who may be claimed on your tax return as a dependent if you provide significant financial support for that individual during the tax year. To qualify, the dependent must meet certain tests, including those related to income and support. By understanding these rules, you can maximize potential tax benefits.
- 1) Relationship – The child must be your biological child, stepchild, foster child, sibling, step-sibling, or a descendant of any of these (such as a grandchild or niece/nephew).
- Bill educational assistance — are considered support by the government.
- For more information about these tax benefits and other deductions for dependents, refer to IRS Publication 501, Exemptions, Standard Deductions, and Filing Information.
- If someone is your qualifying relative, then you can claim them as a dependent on your tax return.
Qualifying Relative?
A qualifying child must be related to the taxpayer through blood, adoption, or fostering and younger than 19 years old (or under age 24 if a full-time student) in most cases. The support test for a qualifying child only requires the child to have provided less than half of their own support. In summary, when claiming someone as a qualifying relative, consider factors like their income level, relationship to you, and the amount of financial support you provide them during the tax year. A dependent is generally a child or relative (or unrelated adult in some cases) who meets the qualifying criteria of the IRS on age, residency, and income.
Tax Benefits of Claiming Dependents
Foster care payments or any support provided by states, such as for a juvenile home, is considered 3rd-party support. Support provided for dependents who are in the military is considered government support. A relative, boy- or girlfriend, family member, or other person might qualify as an Other Dependent on your tax return. If you can be claimed as a dependent by another person, you can’t claim anyone else as a dependent. If your niece can be claimed by you as your dependent, your niece cannot qualifying relative claim her son as a dependent of her own. Claiming a dependent can enable you to use the Head of Household filing status, which usually results in a lower tax rate and a higher standard deduction than filing as Single.
Generally, if someone lives with you and you take care of them, they may qualify as your dependent for tax purposes. This includes family relatives, but also can include a boyfriend or girlfriend. It does not, however, include a wife or husband for which you provide support for. There are no circumstances when you can claim your spouse as a dependent on your taxes, even if you provide their support (stay-at-home parent, disabled spouse, unemployed, etc.). When you file as married filing jointly, you are given several tax breaks.
Child and Dependent Care Credit
As a prospective adoptive parent in the process of adopting a U.S. citizen or resident, you’ll need a taxpayer identifying number (TIN) for the child who is being adopted to claim the child as a dependent. If you don’t have and are unable to obtain the child’s Social Security number (SSN), you should request an adoption taxpayer identification number (ATIN) or individual taxpayer identification number (ITIN). Before you even look at the specific tests for a Qualifying Child or Qualifying Relative, there are three fundamental rules that anyone claimed as a dependent must meet. Think of these as initial hurdles; failing any one means the person cannot be your dependent, regardless of other factors.
If your child has an ATIN or an ITIN, your child may qualify you for the credit for other dependents. For the purposes of the Head of Household filing status, a qualifying person is a child, parent, or relative who meets certain conditions, listed below. For tax purposes, a dependent isn’t just anyone who relies on you financially, like a child you support. The IRS defines a dependent as a person, other than you or your spouse, who meets a specific set of tests. It’s crucial to understand that the everyday meaning of “dependent” might not perfectly match the strict, rule-based definition used in tax law.
Credits & Deductions
U.S. Citizenship and Immigration Services (USCIS) is issuing guidance on the fraud and willful misrepresentation grounds of inadmissibility under INA 212(a)(6)(C)(i) and the corresponding waiver under INA 212(i). The child must be your child, stepchild, foster child, adopted child, sibling, half sibling, stepsibling or a descendant of any of those people. Chris Hutchison helped build NerdWallet’s editorial operation and has directed coverage across banking, investing, taxes and insurance. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News.
You can claim from 20% to 35% of the qualifying care expenses up to a maximum of $3,000 for one dependent, and $6,000 for two or more dependents (in 2024). To be eligible for the CDCC you must have earned at least some income through the tax year, and used a portion of that income to pay for the care expenses of your dependent so that you could either work or find a job. The IRS will not accept the following people if you try to claim them as dependents on your tax return. The child tax credit could get you up to a $2,200 tax credit (with $1,700 being potentially refundable) for the 2025 tax year. Note that only one of the two things has to be true to get over the hurdle.
In this section, we will explore the detailed guidelines for claiming a qualifying relative on your tax return. The Earned Income Tax Credit is another potential tax benefit for taxpayers with a qualifying relative as a dependent. However, this credit only applies to taxpayers who meet specific income requirements and have a qualifying child or other qualifying relatives in their household. The maximum amount of the credit varies based on filing status, number of qualifying children or dependents, and adjusted gross income. By meeting these tests, you can add your qualifying relative as a dependent and potentially gain access to tax credits such as the child tax credit, earned income tax credit, or child and dependent care credit.
- A qualifying child usually refers to the taxpayer’s biological or adopted offspring, stepchild, or foster child.
- This can be done through what is called a qualifying relative; don’t let the term “Relative” confuse you here as this person does not necessarily have to be related to you.
- The percentage of allowable credits ranges from 20% to 35%, depending on the taxpayer’s income and the amount of expenses incurred.
- The parent providing more financial support would claim the dependent status while the other would not, unless they also meet the criteria for claiming a qualifying child or another qualifying relative.
- The IRS provides various tests and guidelines for determining who is considered a qualifying relative.
- It’s important to note the “younger than you” requirement for children who aren’t disabled.
How to claim a qualifying dependent
The adoption tax credit covers up to $17,280 in adoption costs per child for 2025. The child has to be a U.S. citizen, U.S. resident alien, U.S. national, or resident of Canada or Mexico, but there are exceptions for certain adopted children. Review our tax service levels and keep more of your hard-earned money during the year and when you e-file your taxes. Start one or more free state income tax calculators and get an estimate of your state taxes.