Numerous tax benefits are related to claiming a dependent on a tax return. An additional personal exemption for each dependent can be claimed if the dependent in question meets the definition of being a qualifying child or a qualifying relative – but not both.
The qualifying child criteria always takes precedence over the qualifying relative criteria when testing for dependency eligibility. The dependent can be claimed by only one taxpayer for that year.
Qualifying Child Criteria:
Relationship: the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or step-sibling, or a descendant of one of these.
Residence: has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, temporary absences, and for children who were born or died during the year.
Age: must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
Support: did not provide more than one-half of his/her own support for the year. In other words, the taxpayer provided more than 50% of the dependent’s sustenance.
Joint Return: the child cannot file a joint return for the tax year unless the filing is solely to claim a refund.
Qualifying Relative Criteria:
Not a Qualifying Child: the relative cannot meet the criteria to be your qualifying child or the qualifying child of another taxpayer.
Member of Household or Relationship Test: a person lives with you all year as a member of your household or is related to you in the following ways: child, stepchild, eligible foster child, siblings, parents, grandparents, grandchildren, aunts, uncles, nieces, nephews, and in-laws. The relationship cannot violate local laws.
Gross Income Test: the person’s gross income for the year must be less than $4,200.
Support Test: you must provide more than half of the person’s total support for the tax year.
