Who Qualifies as a Dependent for Tax Purposes?

The more dependents you have, the less income tax you'll have to pay. Before 2018, you got a tax exemption of over $4,000 for each dependent. However, the Tax Cuts and Jobs Act, the massive tax reform law that took effect in 2018, eliminated the dependency exemption for 2018 through 2025.

Still, claiming dependents on your taxes can save you a substantial amount. Taxpayers with dependents qualify for valuable tax credits, such as the child tax credit and earned income tax credit. (Unlike the dependency exemption, which would only reduce your taxable income, a tax credit reduces the amount of tax you must pay—for example, if you qualify for a $2,000 credit, you'll pay $2,000 less tax.)

Also, if you're unmarried, you could qualify for head of household filing status if you have dependents. This status entitles you to an increased standard deduction, which will save you taxes.

What Is a Dependent?

A "dependent" is a person who relies on another person for financial support. Dependents can include children or other family members.

Who Qualifies as a Dependent for Taxes?

The IRS allows two types of tax dependents: qualifying children and qualifying relatives. So, you could have a dependent for tax purposes and not even be aware of it. For example, if you support your elderly parents, other relatives, or even people not related to you who live in your household.

If you provide more than half the support for anyone and you haven't claimed the person as a dependent in the past, make sure you read and understand the rules for claiming a dependent on your taxes.

What Are Examples of Dependents on Taxes?

You may claim as a dependent each child who's what the IRS calls a "qualifying child." A qualifying child is:

• related to you—your son, daughter, stepchild, adopted child, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
• under age 19 (or a student under 24)—the child must be under age 19 at the end of the tax year, or under age 24 if a full-time student for at least five months of the year, or any age if permanently and totally disabled at any time during the year.
• not self-supporting—didn't pay for over half of their own support during the year.
• lives with you—either for more than half of the year or falls within special rules for children of parents who are divorced, separated, or living apart (temporary absences for things like schooling, medical treatment, vacations, business, or military service don't count.)
• U.S. citizen or resident—a U.S. citizen, U.S. national, or resident of the United States, Canada, or Mexico for some part of the year.

Most qualifying children are the biological, adopted, or stepchildren of the taxpayers who claim them as dependents, but this doesn't have to be the case. For example, a brother, sister, or grandchild can be your qualifying child if that person is under 19, lives with you over half the year, provides less than half of that person's own support, and is a U.S. citizen or resident.

Moreover, a qualifying child can be as old as 23 if that child is enrolled in school full-time.

Can I Still Claim My Child as a Dependent If They Work?

You can claim a child as a dependent even if they work, so long as they don't provide more than half of their own support.

However, if you're claiming the dependent child under the qualifying relative rules (see below), the child's gross income must be less than $4,700 for the year in 2023 (taxes filed in 2024). This threshold goes up to $5,050 in 2024 (returns due in April 2025).

How Can I Claim a Dependent Child on My Tax Return?

To claim a child as a dependent, you must list the child's Social Security number on your tax return. This rule is intended to prevent people from claiming tax credits and other benefits for children who don't really exist.

How to Get a Social Security Number for Your Child

You may obtain a Social Security number for your child by filling out and filing Social Security Form SS-5. See the Social Security Administration website at www.ssa.gov for details.

It takes about two weeks to get a Social Security number. If you don't have a required Social Security number by the filing due date, you can file IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

If you or your spouse is expecting a child, apply for a Social Security number at the hospital when you apply for your baby's birth certificate. The state agency that issues birth certificates will share your child's information with the Social Security Administration, and it will mail the Social Security card to you.

Can You Claim Adults as Dependents?

Most dependents are taxpayers' children. But they don't always have to be. If you contribute toward the support of a parent or another relative (or even a nonrelative in some cases), you could be entitled to claim the person as a dependent.

If you're a single taxpayer, this can qualify you for head of household filing status, which will give you a much larger standard deduction. In addition, you might be able to claim a $500 family care credit for the person. To be your qualifying relative, a person must pass the following three tests.

1. Member of Household or Relationship Test

First of all, the person must either be related to you or live with you as a member of your household. "Related" means the person is either:

• your child, stepchild, eligible foster child, or a descendant of any of them (for example, your grandchild) (a legally adopted child is considered your child)
• your brother, sister, half-brother, half-sister, stepbrother, or stepsister
• your father, mother, grandparent, or another direct ancestor, but not a foster parent
• your stepfather or stepmother
• a son or daughter of your brother or sister
• a brother or sister of your father or mother, or
• your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

If any of these relationships were established by marriage, they don't count if the marriage was later ended by death or divorce.

A person not meeting any of these relationship tests can still be your dependent if that person (1) has the same principal place of abode as you and (2) is a member of your household for the entire year.

2. How Much Can a Dependent Earn? (The Gross Income Test)

The person's taxable income must be very low—no more than $4,700 in 2023 ($5,050 for 2024). Such income includes taxable Social Security benefits and unemployment compensation but doesn't include disability benefits.

3. Support Test

You must pay for over half the person's support during the year (unless there is a multiple support agreement).

Both Children and Adults Can Qualify as Dependents

Any person you support who lives with you over half the time can qualify as your dependent for tax purposes. This includes not only your children but other relatives as well. Even friends, distant relatives, and domestic partners can qualify as dependents if they're members of your household.

The more dependents you have, the more tax you can save because you can qualify for valuable tax credits.

What Tax Credits Are Available to Taxpayers With Dependents?

Tax credits available for taxpayers with dependents include the following:

• child tax credit
• child and dependent care tax credit for child care expenses
• earned income tax credit
• American opportunity credit for higher education expenses, and
• lifetime learning credit for higher education expenses.

The child tax credit and earned income tax credit are wholly or partly refundable—that is, you can get all or part of the credit from the IRS even if you owe no taxes.

Who Qualifies for the $500 Other Dependent Credit?

If you have dependents but don't qualify for the child tax credit, you might be able to claim the Credit for Other Dependents, which has a maximum credit amount of $500. You can claim this credit in addition to the child and dependent care credit and the earned income credit. The dependent must meet certain criteria:

• The dependent can be of any age, including a dependent who is 18 or older.
• The dependent must have a Social Security number or Individual Taxpayer Identification number.
• The dependent must be a U.S. citizen, national or resident alien.

You can claim this credit if you claim the person as a dependent on your tax return. But you can't use the dependent to claim the child tax credit or additional child tax credit. You may claim the credit for dependent parents or other qualifying relatives you support or for dependents living with you who aren't related to you.

The credit starts to phase out if your income is more than $200,00 ($400,000 for married couples filing a joint tax return).

Use the IRS' Does My Child/Dependent Qualify for the Child Tax Credit or the Credit for Other Dependents tool to help determine if you might be eligible to claim the credit.

Talk to a Tax Lawyer

If you have questions about claiming dependents or what tax credits are available to you, talk to a tax professional, such as a certified public accountant or a tax attorney. A tax professional can prepare tax returns or provide tax information, guidance, or representation before the IRS.