Table of Contents
- What Is a Qualifying Relative?
- Key Takeaways
- Understanding Qualifying Relatives
- IRS Qualifying Relative Tests
- IRS Guidelines
- What Is the Difference Between a Qualifying Child and a Qualifying Relative?
- Am I Eligible for an Earned Income Tax Credit (EITC) for a Qualifying Relative?
- What Is the Support Test When Claiming Qualifying Relatives?
- The Bottom Line
What Is a Qualifying Relative?
Let me explain what a qualifying relative is according to the IRS. It's someone you can claim as a dependent on your tax return if you've provided significant financial support for them during the tax year. Remember, the Tax Cuts and Jobs Act has suspended the deduction for these exemptions from 2018 through 2025, but you can still access other benefits like the Child Tax Credit, Earned Income Tax Credit, and Child and Dependent Care Credit.
Key Takeaways
You can claim a qualifying relative as a dependent when filing your taxes. Before you do that, look at their income, the support you provide, and your relationship with them. Claiming them can give you tax credits that come with adding them to your household. Just note that the Tax Cuts and Jobs Act suspended the exemption deduction for qualifying relatives from 2018 to 2025, though other tax benefits are still on the table.
Understanding Qualifying Relatives
As a taxpayer, you can claim dependents and potentially get tax credits for adding them to your household. A qualifying relative is one type of dependent; the other is a qualifying child. Before claiming someone as a qualifying relative, check their income, the support you give, and your relationship. The IRS has specific tests for this.
IRS Qualifying Relative Tests
To claim someone as a qualifying relative, they have to meet IRS criteria. They can't claim their own dependents, can't be married filing jointly, and must be a U.S. citizen, national, resident alien, or resident of Canada or Mexico. They also can't be a qualifying child of you or anyone else. They must either live with you all year or be related as a child, sibling, parent, grandparent, niece, nephew, aunt, uncle, certain in-law, or step-relative. Even unrelated people can qualify if they live with you the whole year. If someone died or was born during the year and lived with you for the remaining time, that counts too. Their gross income must be less than $4,400, and you must provide more than half their financial support for the year.
IRS Guidelines
Check IRS Publication 501 for details on these tests, including qualifying children, head of household filing, special custody situations, and other deductions. It covers scenarios like multiple people supporting the same person, income limits from salaries or other sources, and what counts as living temporarily away from you.
What Is the Difference Between a Qualifying Child and a Qualifying Relative?
You have to decide if your dependent is a qualifying child or relative. If they meet the child criteria, they're a qualifying child, not a relative. This includes your biological or adopted child, stepchild, foster child, sibling, half-sibling, step-sibling, or their descendants. They must be younger than you and under 19, or under 24 if a full-time student, with no age limit if permanently disabled.
Am I Eligible for an Earned Income Tax Credit (EITC) for a Qualifying Relative?
If someone only qualifies as a relative, you can't claim them for the EITC. They need to be a child, stepchild, eligible foster child, adopted child, sibling, half-sibling, step-sibling, or descendant to qualify for EITC purposes.
What Is the Support Test When Claiming Qualifying Relatives?
You must provide more than 50% of their support for the tax year. This is different from the qualifying child test, which checks if the child provided more than half their own support. Calculate total support by comparing your contributions to all sources, including taxable income, tax-exempt income, and loans.
The Bottom Line
A qualifying relative is a dependent you can claim, but verify their income, your support, and relationship first. It can bring tax credits for adding them to your household. The Tax Cuts and Jobs Act suspended the exemption deduction from 2018 to 2025, but other benefits might apply.
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