Dependents

Have you ever depended on someone for help, whether it be for emotional support, financial assistance, or simply lending a helping hand? Just as we lean on others in our personal lives, certain individuals in our households rely on us financially. In the world of taxes, these individuals are known as dependents. Understanding who qualifies as a dependent can unlock various tax benefits, potentially lowering your tax bill and even increasing your refund.

What Is a Dependent?

A dependent is someone who relies on you for financial support. There are two main types of dependents you can claim on your tax return: qualifying children and qualifying relatives. Notice how I didn't say anything about pets... Unfortunately, our beloved animal friends cannot be claimed as dependents.

Qualifying Child:

• Relationship: Your child, stepchild, brother, or sister, among others.

• Age: Under 19 years of age, under 24 if a full-time student, or any age if permanently disabled.

• Residency: Lived with you for more than 6 months.

• Support: You provide more than 50% of their support.

• Misc: Can’t file a joint return or be claimed as a dependent by someone else.

Qualifying Relative:

• Not a Qualifying Child (see points above)

• Household Member: Lives with you all year.

• Gross Income: Less than $5,050.

• Support: You provide more than 50% of their support.

Understanding the definition of a dependent and meeting the criteria can help you maximize your tax benefits. Always consider consulting a tax professional for personalized advice. Visit the IRS website for more information.