Qualifying Relative

AAA

DEFINITION of 'Qualifying Relative'

A federal income tax designation that allows a taxpayer to claim as a dependent someone for whom he or she provided considerable financial support during the tax year. Claiming a qualifying relative as a dependent will allow the taxpayer to take an additional exemption, which will reduce his taxable income, dollar for dollar.

INVESTOPEDIA EXPLAINS 'Qualifying Relative'

The IRS requires four tests to be passed for a person to be classified as a qualifying relative. They must not be a qualifying child; they must live in the taxpayer's household (but certain types of relatives, including children, siblings, parents, grandparents, nieces, nephews, aunts, uncles, certain in-laws and certain step-relatives are not required to live in the household); must have had a gross income of less than $3,650 (in 2009), and must have received more than half of their financial support for the year from the taxpayer. A qualifying relative can be any age. IRS Publication 501 provides details about meeting the qualifying relative tests.



RELATED TERMS
  1. Filing Status

    A category that defines the type of tax return form an individual ...
  2. Adjusted Gross Income - AGI

    A measure of income used to determine how much of your income ...
  3. Married Filing Jointly

    A filing status for married couples that have wed before the ...
  4. Head Of Household

    A status held by the person in a household who is running the ...
  5. Standard Deduction

    A base amount of income that is not subject to tax and that can ...
  6. Tax Deductible Interest

    A borrowing expense that a taxpayer can claim on a federal or ...
RELATED FAQS
  1. Can I get a tax credit from conducting research and development?

    It is possible for a company to qualify for a research and development tax credit for conducting research and development. ... Read Full Answer >>
  2. How does a qualifying widow obtain widow's allowance?

    The requirements that a widow must meet to obtain a widow's allowance include having a child who is claimed as a dependent ... Read Full Answer >>
  3. What are the advantages and disadvantages of capitalizing interest for tax purposes?

    The advantages and disadvantages of capitalizing interest for tax purposes lie in a company's ability to manage or manipulate ... Read Full Answer >>
  4. How can I find out which income tax bracket I am in?

    U.S. federal tax brackets are based on filing status (single, married filing jointly, married filing separately or head of ... Read Full Answer >>
  5. What are the risks involved in a banker's acceptance?

    College savings accounts are excellent ways to encourage saving for future college costs. Contact your investment professional ... Read Full Answer >>
  6. How does a master limited partnership (MLP) differ from other business structures?

    The master limited partnership (MLP) is a unique hybrid legal structure that combines elements of a partnership with elements ... Read Full Answer >>
Related Articles
  1. Options & Futures

    An Estate Planning Must: Update Your Beneficiaries

    Life changes make it time to rewrite your plan's designations.
  2. Retirement

    Skipping-Out on Probate Costs

    Don't let bad estate planning lead to unnecessary costs and stress for your inheritors.
  3. Retirement

    Mistakes In Designating A Retirement Beneficiary

    Make sure your beneficiary designations not only reflect your intentions but also meet the requirements to be effective.
  4. Taxes

    10 Little Known Ways To Reduce Your 401(k) Taxes

    These clever strategies will help you hold onto your money – so you'll have more available for your retirement.
  5. Professionals

    How Going Green Can Cut Your Taxes

    Investors looking to improve their bottom line via green investing without risk should take advantage of these tax credits.
  6. Taxes

    Don't Throw Out These Tax Documents!

    Tedious as it is, make a practice of keeping these papers that you'll need in the future. It can save headaches and pay off in tax savings.
  7. Taxes

    What is Adjusted Gross Income?

    Adjusted gross income (AGI) is a term from the Internal Revenue Code. AGI is used to determine a person’s income taxes due.
  8. Bonds & Fixed Income

    How Are Zero-Coupon Municipal Bonds Taxed?

    What every investor needs to know about taxes and zero-coupon muni bonds.
  9. Bonds & Fixed Income

    Muni Bonds, Taxable Bonds or CDs: Which is Best?

    Here's how to tell if municipal bonds are a better investment than taxable bonds or CDs.
  10. Economics

    Why Working Doesn't Add Up For Many Women

    A type of tax deduction for Japanese stay-at-home wives puts a barrier on women working full time in the country.

You May Also Like

Hot Definitions
  1. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
  6. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!