What Does Tax Code 152 Mean for Claiming a Dependent?

IRS Tax Code Section 152 defines who can be claimed as a dependent for tax purposes. Understanding this section is essential for individuals to accurately determine eligibility for various tax benefits linked to dependents. Proper identification ensures taxpayers can correctly claim available credits and deductions on their federal income tax returns.

Defining a Qualifying Child

To be a “qualifying child” under Section 152, an individual must satisfy several tests. The relationship test requires the child to be your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them. This includes legally adopted children or those lawfully placed with you for legal adoption.

The age test requires the child to be under 19 years old at the end of the tax year. If a full-time student, they must be under 24 at the end of the tax year. There is no age limit if the child is permanently and totally disabled at any time during the year.

The residency test mandates that the child must have lived with the taxpayer for more than half of the year. Exceptions exist for temporary absences due to special circumstances like school, vacation, medical care, or military service. Children born or who died during the year are considered to have lived with the taxpayer for the entire year.

The support test requires the child not to have provided more than half of their own support for the year. The joint return test stipulates that the child cannot file a joint tax return for the year, unless it is filed solely to claim a refund of withheld income tax.

Defining a Qualifying Relative

To be a “qualifying relative” under Section 152, an individual must meet specific criteria. The “not a qualifying child” test ensures the person cannot be a qualifying child of any taxpayer, including your own. This prevents a person from being claimed under both dependent categories.

The relationship or member of household test requires the person to either be related to you in specific ways (such as a parent, grandparent, sibling, aunt, uncle, niece, nephew, or certain in-laws) or to have lived with you for the entire year as a member of your household. An individual who is not technically related can still qualify if they reside with you for the full year.

The gross income test specifies that the person’s gross income for the calendar year must be less than a certain amount, which is $5,050 for the 2024 tax year and $5,200 for 2025. This amount is adjusted annually for inflation.

The support test requires the taxpayer to provide more than half of the person’s total support for the year. The joint return test also applies, meaning the person cannot file a joint tax return for the year, unless it is only to claim a refund of withheld income tax.

Common Dependency Scenarios

For children of divorced or separated parents, a special rule dictates that only the custodial parent can claim the child. However, the custodial parent can release their claim to the noncustodial parent using IRS Form 8332, Release/Revocation of Release of Claim to Exemption for Child of Divorced or Separated Parent.

This form allows the noncustodial parent to claim certain tax benefits, such as the Child Tax Credit, even if the child does not live with them for most of the year. Form 8332 must be signed by the custodial parent and attached to the noncustodial parent’s tax return. A divorce decree alone is not sufficient documentation for the IRS.

Another common scenario involves multiple support agreements, typically used for a qualifying relative. This applies when no single person provides more than half of an individual’s support, but a group of people collectively provides more than half. In such cases, one member of the group who provides more than 10% of the support can claim the dependent.

To formalize this agreement, each person in the group who contributed more than 10% of the support must sign IRS Form 2120, Multiple Support Declaration, or a similar written statement, agreeing not to claim the individual as a dependent. The person claiming the dependent must attach this form or statement to their tax return.