Who can I claim as my dependent?

One of the most asked and less known questions that I am asked is "Who can I claim as my dependent?"  The unfortunate truth is that this is an area where tax deductions can be missed or even misstated on tax returns.  There are actually a number of relatives who do not need to live with you to qualify for the deduction.  It could be that the grandmother you support during the year that did not live with you could be a hidden deduction.

A dependent must pass 5 tests to be your "qualifying child" and 4 tests to be your "qualifying relative" in order to be able to claim them as dependent.

Qualifying Child
•Relationship: Must be your child, adopted child, foster-child, brother or sister, or a descendant of one of these(grand or nephew).
•Residence: Must have the same residence for more than half the year.
•Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
•Support: Must not have provided more than half of their own support during the year.
•Joint Support: The child cannot file a joint return for the year.

Qualifying Relative
•They are not the “qualifying child” of another taxpayer or your “qualifying child”.
•Gross Income: Dependent earns less than $4,000 in 2015.
•Total Support: You provide more than half of the total support for the year.
•Member of Household or Relationship: The person must live with you all year as a member of your household or be one of the relatives that doesn’t have to live with you.

Relatives who do not have to live with you:
A person related to you in any of the following ways doesn't have to live with you all year as a member of your household to meet this test.

• Your child, stepchild, 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 other direct ancestor, but not foster parent.
• Your stepfather or stepmother.
• A son or daughter of your brother or sister.
• A son or daughter of your half brother or half sister.
• A brother or sister of your father or mother.
• Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

Any of these relationships that were established by marriage aren't ended by death or divorce.