Qualifying Relative

What Is a Qualifying Relative?

A qualifying relative is a person designated by federal income tax code to be permitted to be claimed as a dependent by a taxpayer expecting the taxpayer offered impressive financial help for the qualifying relative during the tax year. Claiming a qualifying relative as a dependent won't at present permit the taxpayer to take an extra exemption, however, as the personal exemption has been briefly disposed of under the TCJA (Tax Cuts and Jobs Act of 2018).

Under the TCJA, the standard deduction was almost multiplied, and thusly, taxpayers don't get an extra exemption for claiming a qualifying relative. A qualifying relative doesn't need to be organically connected with the taxpayer.

Grasping Qualifying Relatives

A qualifying relative is a specific term with an exceptionally obvious importance to the Internal Revenue Service (IRS). As a qualifying relative, a taxpayer can claim that person as a dependent and receive potential tax credits that might go with the expansion of that person to the household.

Qualifying relatives most ordinarily incorporate one's more established relative who has returned home to reside and be dealt with in the household. As a dependent, they must not be earning income and ought to depend on the household income suppliers for support. The spouse of a taxpayer isn't viewed as a qualifying relative.

A qualifying relative can be any age.

The IRS requires four tests to be passed for a person to be classified as a qualifying relative.

1. The qualifying relative must not be a qualifying child of the taxpayer or of any other person; no taxpayer can claim them on their tax return as a qualifying child.
2. The qualifying relative must either reside in the taxpayer's household the entire year or be connected with the taxpayer as a child, kin, parent, grandparent, niece or nephew, auntie or uncle, certain in-regulation, or certain step-relative. Somebody who isn't technically connected with the taxpayer can turn into a qualifying relative by living with the taxpayer the entire year, and somebody who is connected with the taxpayer — however doesn't live with them — can be a qualifying relative. A person who passed on during the year yet lived with the taxpayer til' the very end or who was brought into the world during the year and lived with the taxpayer until the end of the year is viewed as a qualifying relative, even however that person didn't live with the taxpayer for the full year.
3. The qualifying relative must have a gross income of under $4,200 in 2019. This amount can increase consistently.
4. The qualifying relative must have received the greater part of their financial support for the year from the taxpayer.

IRS Qualification Guidelines

IRS Publication 501, Exemptions, Standard Deductions, and Filing Information, gives insights concerning meeting the qualifying relative tests, data about being a qualifying child, filing as head of household, special custody and residency circumstances, and different deductions. This official publication gives point by point data about special conditions, including how to file when different taxpayers offer help for a similar person; limits of earning a salary, time-based compensations or getting money from different sources to remain under the limit for a qualifying relative; and what qualifies a person as living briefly away from the taxpayer.

Features

• A qualifying relative is an allowance for a non-qualifying child of a taxpayer's household to be claimed as a dependent for tax purposes.
• As a dependent, a qualifying relative might possibly bear the cost of the taxpayer tax credits that go with the expansion of that dependent to the household.
• To be eligible as a qualifying relative by the IRS, four conditions must be met.