Who is considered a qualifying dependent?

There are two different dependency categories. They are: qualifying child and qualifying relative. A taxpayer cannot claim a person as a dependent who can be claimed as a dependent on another tax return.

Qualifying Child

To claim a qualifying child as a dependent, all of the following dependency test must be met.

Member of household
Relationship test
Citizen or resident test
Joint Return test
Age or Student test
Support test

Member of household - The child must live with the taxpayer for more than half the year as a member of the taxpayer's household. You do not have to own the principle of abode or pay the maintenance costs, but the child must live with you for over half the year, except for temporary absences. (Temporary absences include attending school, taking vacations, and staying in the hospital.)

Relationship - The person must be related to the taxpayer in one of the allowable ways. They are: child, brother/sister, stepchild, stepbrother/stepsister, half brother/half sister, grandchild, niece/nephew or a legally adopted child or a child lawfully placed for adoption, as well as a foster child.

Citizen or Resident Test - A child is a U.S. citizens or national, or residents of the US Canada or Mexico.

Joint Return Test - Taxpayers will meet this test for persons who are:

married but do not file a joint return, or
married and file a joint return only to claim a refund of withheld tax; neither would have a tax liability on separate returns; neither the dependent nor spouse can claim personal exemptions on their joint return.

Age or Student Test - The child is under the age of 19 years of age at the end of the year, or under the age of 24 years of age at the end of the year and is a full-time student for at least 5 months. This test does not apply to a child who is permanently and totally disable at any time during the year...

Support Test - The child must not have provided more than half of his or her own support for the year.

Total support items include:

food, clothing, shelter, education, medical and dental care, recreation, and transportation; and
welfare, food stamps, and housing provided by the state.

Qualifying Relative

To claim a qualifying relative dependency exemption, all of the following dependency test must be met.

Relationship test
Gross Income test
Support test
Citizen or resident test
Joint Return test

Relationship - The following relatives meet this test, however, they do not have to live with the taxpayer. They are: children, great or grandchildren, who are not qualifying children. For example, if your child is not a qualifying child for 2023 because he or she does not meet the age/student test or the principle place of abode test, the taxpayer may still be able to claim as dependent for the child as your qualifying relative, but only if he or she has gross income under the $4,700 limit and you provide over 50% of his or her support. The same rules applies for brother/sister, stepbrother/stepsister, half brother/half sister, niece/nephew. Parents, grandparents, great-grandparents, step-parents, son/daughter in-laws, father or mother in-laws, and brothers/sisters in-law. If related by blood uncles and aunts. A relative not listed above, such as a cousin, or unrelated person, meets the relationship test if he or she is a member of your household and your home is his or her principal home for the entire year, except for temporary absences due to schooling, vacationing, being away on business, serving in the military or being confined to a hospital. A person cannot meet the member of household test if the relationship violates local laws. For example, if the taxpayer lives with a person married to someone else and the relationship violates the laws of the state where they live, you cannot claim an exemption for that person.

Gross Income Test - A person meeting the above relationship test cannot be claimed as a qualifying relative if he or she had gross income for the tax year of $4,700 or more. This is true even if you provided most or all of that person's support.

Support Test - A person cannot be a qualifying relative unless the taxpayer provides over half of his or her total support for the year.

Citizen or Resident Test - A person is a U.S. citizens or national, or residents of the US Canada or Mexico.

Joint Return Test - Taxpayers will meet this test for persons who are

married but do not file a joint return, or
married and file a joint return only to claim a refund of withheld tax; neither would have a tax liability on separate returns; neither the dependent nor spouse can claim personal exemptions on their joint return.