Member Of Household Test

AAA

DEFINITION of 'Member Of Household Test'

A test that can be administered to a prospective dependent in lieu of the "relationship test". If a person does not meet the criteria to be considered a close relative by the IRS, he or she may still qualify as a member of household if he or she lived as a member of the taxpayer's household for the entire year. Domestic employees, such as maids and babysitters, are excluded from this treatment.

INVESTOPEDIA EXPLAINS 'Member Of Household Test'

Both the taxpayer and the prospective dependent can be temporarily absent from the home during the year without jeopardizing the dependency status. This type of absence can be for illness, vacation, education, business, military service or other similar reasons. If a person is born or dies during the year but lived as a member of the household the rest of the year, that person still qualifies as a member of the household.

RELATED TERMS
  1. Relationship Test

    One of several tests that a person must pass in order to be claimed ...
  2. Support Test

    One of five tests that must be passed in order to claim someone ...
  3. Head Of Household

    A status held by the person in a household who is running the ...
  4. Dependent

    An individual whom a taxpayer can claim for credits and/or exemptions. ...
  5. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
  6. Buffett Rule

    A tax rule proposed in 2011, by President Barack Obama, stating ...
Related Articles
  1. How To Claim A Dependent On Your Tax ...
    Taxes

    How To Claim A Dependent On Your Tax ...

  2. Personal Income Tax Guide
    Taxes

    Personal Income Tax Guide

  3. Which is better for tax deductions, ...
    Options & Futures

    Which is better for tax deductions, ...

  4. Does everyone have to file a federal ...
    Taxes

    Does everyone have to file a federal ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center