IRC Section 152: Domestic Partner Dependency Rules

While state and local laws may recognize domestic unions, the Internal Revenue Service (IRS) has its own specific set of rules for when one partner can be claimed as a tax dependent. These federal tax regulations, primarily outlined in Internal Revenue Code (IRC) Section 152, must be satisfied completely, regardless of how a state defines the relationship. The ability to claim a domestic partner hinges not on a local registration, but on whether the partner meets the federal definition of a “Qualifying Relative.”

Understanding this distinction is important for any taxpayer considering claiming their partner on their federal income tax return.

The Qualifying Relative Tests

For a domestic partner to be claimed as a dependent, they must meet the criteria for a “Qualifying Relative” as defined by the IRS. This involves passing four distinct tests with specific requirements. The framework ensures that only individuals who genuinely rely on the taxpayer for their livelihood can be claimed, and it applies uniformly to all non-related individuals who live together.

Not a Qualifying Child Test

The first test requires that the domestic partner is not a “qualifying child” of the taxpayer or any other taxpayer. This rule prevents an individual from being claimed as a dependent under two different categories. A qualifying child has their own criteria related to age, relationship, and residency. This test is straightforward for a domestic partner, as they will not meet the age and relationship requirements to be considered the taxpayer’s child.

Member of Household Test

A requirement is that the domestic partner must have lived with the taxpayer for the entire calendar year as a member of their household. Their principal place of abode must have been the taxpayer’s home from January 1 through December 31. The IRS allows for temporary absences for vacations, military service, or medical care, provided the person is expected to return.

Additionally, the relationship between the taxpayer and the domestic partner must not violate local law. While most historical cohabitation laws have been repealed, a relationship that is illegal under current local law would disqualify the partner from being claimed as a dependent.

Gross Income Test

The partner’s income is a factor in determining dependency. To be claimed as a dependent, the partner’s gross income for the tax year must be less than an amount set by the IRS, which is $5,050 for 2025. This threshold is adjusted periodically for inflation.

“Gross income” includes all income received as money, property, and services that is not tax-exempt, such as wages, unemployment compensation, and taxable interest. Certain types of income, like non-taxable Social Security benefits or gifts, are not included. If the partner’s gross income exceeds this limit, they cannot be claimed as a dependent.

Support Test

The final test requires the taxpayer to have provided more than half of the domestic partner’s total support for the calendar year. This is a financial evaluation that compares the amount the taxpayer contributed to the partner’s living expenses against the total cost of support from all sources. These sources include the partner’s own funds, support from others, and government assistance. This test ensures the taxpayer is the primary source of financial maintenance for the dependent.

Calculating the Support Test

Determining if you provided more than half of your partner’s support requires a methodical calculation. You must compare the support you provided against the total support the person received from all sources, including their own funds. Total support includes all costs associated with maintaining a person’s standard of living for the year.

Qualifying support expenses are broad and include lodging, which has its own valuation method, as well as:

• Food and clothing
• Education
• Medical and dental care
• Recreation
• Transportation

The IRS provides a worksheet in Publication 501 to help organize these figures. For example, if a partner’s total support for the year was $20,000, the taxpayer must have paid for at least $10,001 of those expenses.

Any money the partner uses from their own earnings or savings for living expenses is counted as support they provided for themselves. If a partner receives $8,000 in non-taxable disability benefits and spends it on their own care, that $8,000 is considered support provided by the partner.

Valuing Lodging

When calculating support, lodging is not valued at the amount of rent or mortgage paid, but by its “fair rental value.” The fair rental value is the amount you could reasonably expect to receive from a stranger for similar lodging, including an allowance for furniture and utilities.

If the partner lives with you in your home for the entire year, the support you provide includes a share of the fair rental value of the home. If the partner owns the home you both live in, the total fair rental value is considered support contributed by that partner. This can make it difficult to meet the support test if the partner is the homeowner, even if you pay all other household bills.

State Law Complications

Certain state laws can create complications for the Gross Income and Support tests, particularly in community property states. These states include:

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

In community property states, income earned by a registered domestic partner during the relationship is often considered owned equally by both individuals. The IRS respects these state property laws when determining income for federal tax purposes. This creates an issue for the Gross Income Test. For instance, if a taxpayer earns $80,000, state law may treat $40,000 as belonging to their partner. This amount is far above the gross income limit, making it impossible to claim the partner as a dependent.

The Support Test is similarly affected. If half of the taxpayer’s income legally belongs to the partner, then any support paid from that income is considered to have been provided by the partner, not the taxpayer. This makes it difficult to prove you provided more than 50% of the partner’s total support.

Tax Filing Implications

Successfully claiming a domestic partner as a dependent provides several tax benefits that can lower a taxpayer’s overall tax liability. The main benefit is the Credit for Other Dependents. This is a nonrefundable tax credit worth up to $500 for each qualifying dependent who is not a qualifying child. This credit directly reduces the amount of tax owed, but if the liability is reduced to zero, no refund is issued for the remaining credit.

Claiming a domestic partner as a dependent does not, by itself, allow the taxpayer to use the Head of Household filing status. To qualify for Head of Household, the taxpayer must have a qualifying child or a related qualifying relative, and a domestic partner is considered unrelated for this purpose.

Another advantage is the ability to deduct medical expenses paid for the dependent partner if the taxpayer itemizes deductions. Furthermore, if the partner qualifies as a dependent, the value of employer-provided health insurance coverage for that partner is generally excluded from the employee’s income.