What Is Tax Code 152: Defining a Dependent

Internal Revenue Code Section 152 defines who qualifies as a “dependent” for federal income tax purposes. This definition directly impacts a taxpayer’s eligibility for various tax benefits, including certain credits and filing statuses. Understanding these definitions is important for accurately preparing tax returns and potentially reducing tax obligations. The Internal Revenue Service (IRS) outlines specific criteria that individuals must satisfy to be claimed as either a “qualifying child” or a “qualifying relative.”

Defining a Qualifying Child

To claim an individual as a “qualifying child,” several distinct tests must be met. The relationship test specifies that the individual must be the taxpayer’s child, stepchild, eligible foster child, sibling, stepsibling, half-sibling, or a descendant of any of them, such as a grandchild, niece, or nephew. An adopted child is treated the same as a biological child, even if the adoption is not yet final.

The age test requires the child to be under 19 at the end of the tax year, or under 24 if a full-time student. An exception applies if the individual is permanently and totally disabled at any time during the year, in which case there is no age limit. For the residency test, the child must have lived with the taxpayer for more than half of the tax year. Temporary absences for reasons such as schooling, vacation, medical care, or military service are generally counted as time living with the taxpayer.

The support test mandates that the child must not have provided more than half of their own financial support for the year. This means the taxpayer, or others, must have covered the majority of the child’s living expenses.

Finally, the joint return test stipulates that the child cannot file a joint tax return for the year. An exception applies if the joint return is filed only to claim a refund of withheld income tax or estimated tax paid, and neither the child nor their spouse would have a tax liability on separate returns.

Defining a Qualifying Relative

Claiming an individual as a “qualifying relative” involves meeting a series of specific criteria, which differ from those for a qualifying child. The first condition is the “not a qualifying child” test, meaning the individual cannot be a qualifying child of the taxpayer or of any other taxpayer. This ensures that individuals who meet the stricter qualifying child criteria are categorized appropriately.

The relationship or member of household test offers two pathways: the person must either be related to the taxpayer in a specific way or have lived with the taxpayer as a member of their household for the entire tax year. Specified familial relationships include parents, grandparents, siblings, aunts, uncles, nieces, nephews, and certain in-laws. If not related in one of these ways, the individual must have their principal place of abode with the taxpayer for the entire year, and this living arrangement must not violate local law.

The gross income test requires the individual’s gross income for the tax year to be less than a specific amount, which is subject to annual adjustment by the IRS. Lastly, the support test dictates that the taxpayer must provide more than half of the individual’s total support for the year. This includes expenses such as food, lodging, clothing, education, and medical care, ensuring the taxpayer is the primary source of financial assistance.