BROWSE

Qualifying Relative

What is 'Qualifying Relative'

A federal income tax designation that allows a taxpayer to claim as a dependent someone for whom he or she provided considerable financial support during the tax year. Claiming a qualifying relative as a dependent will allow the taxpayer to take an additional exemption, which will reduce his taxable income, dollar for dollar.

Explaining 'Qualifying Relative'

The IRS requires four tests to be passed for a person to be classified as a qualifying relative. They must not be a qualifying child; they must live in the taxpayer's household (but certain types of relatives, including children, siblings, parents, grandparents, nieces, nephews, aunts, uncles, certain in-laws and certain step-relatives are not required to live in the household); must have had a gross income of less than $3,650 (in 2009), and must have received more than half of their financial support for the year from the taxpayer. A qualifying relative can be any age. IRS Publication 501 provides details about meeting the qualifying relative tests.


Further Reading


Earthquakes, cancer and cultures of fear: qualifying as a Skills for Life teacher in an uncertain economic climate
www.tandfonline.com [PDF]
… the part of some policy makers in seeking to cast discussion of relative performance on … Skills are integral to accelerating economic prosperity; creating competitive business advantage in a challenging … moment and aimed to chart its impact on a cohort of qualifying SfL teachers …

Japan's financial crisis and economic stagnationJapan's financial crisis and economic stagnation
www.aeaweb.org [PDF]
… the part of some policy makers in seeking to cast discussion of relative performance on … Skills are integral to accelerating economic prosperity; creating competitive business advantage in a challenging … moment and aimed to chart its impact on a cohort of qualifying SfL teachers …

The economics of small business finance: The roles of private equity and debt markets in the financial growth cycleThe economics of small business finance: The roles of private equity and debt markets in the financial growth cycle
www.sciencedirect.com [PDF]
… the part of some policy makers in seeking to cast discussion of relative performance on … Skills are integral to accelerating economic prosperity; creating competitive business advantage in a challenging … moment and aimed to chart its impact on a cohort of qualifying SfL teachers …

Finite-time singularity in the dynamics of the world population, economic and financial indicesFinite-time singularity in the dynamics of the world population, economic and financial indices
www.sciencedirect.com [PDF]
… the part of some policy makers in seeking to cast discussion of relative performance on … Skills are integral to accelerating economic prosperity; creating competitive business advantage in a challenging … moment and aimed to chart its impact on a cohort of qualifying SfL teachers …

The economic theory of regulation and public financing of presidential electionsThe economic theory of regulation and public financing of presidential elections
www.journals.uchicago.edu [PDF]
… the part of some policy makers in seeking to cast discussion of relative performance on … Skills are integral to accelerating economic prosperity; creating competitive business advantage in a challenging … moment and aimed to chart its impact on a cohort of qualifying SfL teachers …

CRUDi framework proposal: financial industry applicationCRUDi framework proposal: financial industry application
www.tandfonline.com [PDF]
… the part of some policy makers in seeking to cast discussion of relative performance on … Skills are integral to accelerating economic prosperity; creating competitive business advantage in a challenging … moment and aimed to chart its impact on a cohort of qualifying SfL teachers …

Unrelated Child as a Qualifying RelativeUnrelated Child as a Qualifying Relative
www.questia.com [PDF]
… the part of some policy makers in seeking to cast discussion of relative performance on … Skills are integral to accelerating economic prosperity; creating competitive business advantage in a challenging … moment and aimed to chart its impact on a cohort of qualifying SfL teachers …



Q&A About Qualifying Relative


What test must you pass in order to claim head of household?

To qualify as head of household, a taxpayer must have paid more than half the cost keeping up their home during tax year 218. This includes food, clothing and shelter costs; mortgage interest payments; property taxes; rent payments or utility charges; repairs and upkeep on your house; insurance premiums (homeowners); etc. If two people live together in one home and both pay half these costs they cannot file jointly unless they are legally married because each person's share would count toward their own personal exemption rather than being applied against someone else's exemption (as it would with joint returns).

What is the filing status for individuals?

The filing status for individuals is Single, Married Filing Jointly, Married Filing Separately, Head of Household or Qualifying Widow(er).

Who can use the Head of Household filing status?

A taxpayer must meet all the following tests to be considered unmarried for Head of Household purposes.

Can you claim someone for whom you do not provide financial support?

No, if you do not provide financial support to your qualifying relatives they are not eligible to be claimed on your tax return.

What are some examples of taxpayers who may be considered unmarried for Head of Household purposes?

A taxpayer may also be considered unmarried if the spouse is a nonresident alien and does not elect to treat the spouse as a resident alien. In that case, the taxpayer is still considered married for purposes of claiming an earned income credit.

How much does it cost to claim someone as a dependent?

The amount of money that could have been saved by claiming the dependent would have been equal to the standard deduction amount for that year.

What is a qualifying relative?

A qualifying relative is a person who the taxpayer can claim as an exemption.

Who cannot be claimed as a qualifying relative?

A child or step-child, including adopted children and stepchildren.

Can I claim head-of-household if my parents live with me but don't help pay any expenses at all ?

No .

Can you claim head-of-household even if your parents live with you but help pay expenses like food or utilities?

Yes .

Leave a Reply

Your email address will not be published. Required fields are marked *