Publication 929: 2022 Rules for Claiming a Dependent

Determining who qualifies as a dependent is a step in preparing a federal income tax return. The Internal Revenue Service provides guidance that outlines the criteria a person must meet to be claimed. Understanding this framework helps ensure a correct tax return and access to certain tax benefits.

Universal Requirements for Claiming a Dependent

Before a person can be considered a qualifying child or a qualifying relative, three universal tests must be met. These rules apply to all potential dependents, regardless of their relationship to the taxpayer.

The first is the dependent taxpayer test. A taxpayer cannot claim someone as a dependent if they themselves can be claimed as a dependent by another taxpayer. For example, if a college student is claimed as a dependent by their parents, that student cannot then claim a dependent of their own.

Next is the joint return test, which prevents a taxpayer from claiming a married person as a dependent if that person files a joint tax return with their spouse. An exception exists if the couple files a joint return solely to claim a refund of withheld income tax or estimated taxes paid. If the return is filed for any other reason, the individual cannot be claimed as a dependent.

Finally, the citizen or resident test requires the potential dependent to be a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico for some part of the year. Exceptions exist for certain adopted children who live with a U.S. citizen or national abroad.

The Qualifying Child Tests

After meeting the universal requirements, an individual must pass five tests to be considered a qualifying child. If the individual fails even one test, they are not a qualifying child, and the taxpayer must then determine if they meet the qualifying relative rules.

The relationship test requires the person to be related to the taxpayer in one of the following ways:

• Son, daughter, stepchild, or foster child
• Brother, sister, half-brother, half-sister, stepbrother, or stepsister
• A descendant of any of the above individuals, such as a grandchild, niece, or nephew

An adopted child, including a child lawfully placed for adoption, is always treated as the taxpayer’s own child.

The age test requires the child to be younger than the taxpayer and under age 19 at the end of the tax year. The age limit is extended to under 24 for a full-time student enrolled for at least five months of the year. A person of any age who is permanently and totally disabled also meets the age test.

The residency test requires the child to have lived with the taxpayer for more than half of the year. Temporary absences for reasons like education, illness, business, vacation, or military service are permitted. Special rules apply for children of divorced or separated parents and for children who were born or died during the year.

For the support test, the child cannot have provided more than half of their own support for the year. This means the taxpayer does not have to provide more than half of the support, only that the child did not. Scholarships received by a full-time student are not included when calculating their total support.

The Qualifying Relative Tests

If an individual is not a qualifying child, they may be claimed as a dependent by meeting four tests to be a qualifying relative. This category often applies to older relatives or other individuals who rely on the taxpayer for their financial needs.

The first test is that the person cannot be the taxpayer’s qualifying child or the qualifying child of any other taxpayer. If someone could be claimed as a qualifying child by any taxpayer, they cannot be claimed as a qualifying relative. This is true even if the person who could claim them as a qualifying child chooses not to.

The member of household or relationship test is met if the person either lived with the taxpayer for the entire year or is related to the taxpayer. Relatives do not have to live with the taxpayer. Eligible relatives include:

• Parents and grandparents
• Siblings
• In-laws
• Other specific relatives as defined by the IRS

Under the gross income test, a potential dependent’s gross income for the 2024 tax year must be less than $5,050. Gross income includes all income received in the form of money, goods, property, and services that is not tax-exempt. This does not include non-taxable Social Security benefits.

The support test for a qualifying relative requires the taxpayer to provide more than half of the person’s total support for the year. Support includes the cost of:

• Food and lodging
• Clothing
• Education
• Medical expenses
• Other necessities

If multiple people contribute to someone’s support, Form 2120, Multiple Support Declaration, can be used to allow one person who contributed more than 10% of the support to claim the dependent.

Tie-Breaker Rules for a Qualifying Child

If a child meets the tests to be a qualifying child for more than one person, the IRS has tie-breaker rules to determine who can claim the dependent. This can occur when a child lives with a parent and grandparent, or with divorced or separated parents.

If one of the eligible individuals is the child’s parent, the parent has priority to claim the child. If both eligible individuals are the parents and they do not file a joint return, the claim goes to the parent with whom the child lived longer during the year. If the time was equal, the parent with the higher adjusted gross income (AGI) claims the child.

If no parent is eligible to claim the child, the taxpayer with the highest AGI among the eligible individuals is granted the right to claim the child. This rule clarifies who can claim the dependent when, for example, a child lives with both an aunt and a grandparent who could otherwise qualify.

For divorced or separated parents, the custodial parent (with whom the child lived for more nights) has the right to claim the child. The custodial parent can release this claim to the noncustodial parent by signing Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. The noncustodial parent must attach this form to their tax return.

Tax Benefits Associated with Dependents

Claiming a dependent allows a taxpayer to access several tax benefits that can reduce their tax liability or increase their refund. These benefits are tied to having either a qualifying child or a qualifying relative, though each benefit has its own specific requirements.

Taxpayers with a qualifying child under age 17 may be eligible for the Child Tax Credit, worth up to $2,000 per child for the 2024 tax year. If the credit exceeds the tax owed, up to $1,700 per child may be refundable as the Additional Child Tax Credit.

Dependents who do not qualify for the Child Tax Credit may make the taxpayer eligible for the Credit for Other Dependents. This nonrefundable credit is worth up to $500 per dependent and applies to qualifying relatives or qualifying children who are too old for the Child Tax Credit.

The Child and Dependent Care Credit is for taxpayers who pay for care for a qualifying person so they can work or look for work. A qualifying person is a qualifying child under age 13, or a spouse or other dependent incapable of self-care. The credit is a percentage of work-related expenses, ranging from 20% to 35%, on up to $3,000 in expenses for one person and $6,000 for two or more.

Having a qualifying child can increase the amount of the Earned Income Tax Credit (EITC) for low- to moderate-income workers. Other benefits linked to dependency status include education credits, the student loan interest deduction, and the deduction for a dependent’s medical expenses.