A tax dependent is a qualifying child or relative who can be claimed on a tax return if certain criteria are met. Having a dependent on your tax return may allow you to claim the child tax credit, head of household filing status, the earned income tax credit or the child and dependent care credit. We will review the requirements to claim a dependent child and relative, as well as when dependents are required to file their own tax return.
When are dependents required to file a tax return?
Earned income of at least $13,850, or unearned income of at least $1,250. Additionally, if net income from self-employment is $400 or more regardless of if it was part-time or temporary you must file a tax return.
If gross income is at least $4,700 for 2023 ($5,050 in 2024) you cannot be claimed as a dependent unless you meet the requirements of a qualifying child.
Qualifying Child Requirements:
Must be your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, or stepsister, or a descendant of any of them. Must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly); (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly); or (c) any age if permanently and totally disabled. Must have lived with you for more than half of the year. Must not have provided more than half of the child's own support for the year. Must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).
Qualifying Relative Requirements:
The person cannot be your qualifying child or the qualifying child of any other taxpayer. The person either (a) must be related to you, or (b) must live with you all year as a member of your household. The person's gross income for the year must be less than $4,700 (2023) or $5,050 (2024). You must provide more than half of the person's total support for the year.
Key Definitions:
Earned Income includes salaries, wages, professional fees, and other amounts received as pay for work you perform. Unearned Income includes interest, dividends, and capital gains. Gross Income is the total of unearned and earned income. Net Income is an entity's gross income minus all deductible expenses.