# What Is a Dependent?

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> **Definition**
>
> A dependent may be a child or relative who meets the IRS tests on income, tax filing status, and residency.

## What Is a Dependent?

A dependent relies on someone else for financial support. Dependents can include children or other relatives. Taxpayers with a dependent can claim a dependency exemption on their tax return if the dependent meets the [Internal Revenue Service (IRS)](https://www.investopedia.com/terms/i/irs.asp) definition.

### Key Takeaways

*   A dependent relies on someone else for financial support and can include children or other relatives.
*   Taxpayers with one or more dependents may be eligible for certain tax credits.
*   To be claimed as a dependent, a person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.

## Claiming Dependents

A dependent may be a qualifying child or another qualifying relative. Dependency is defined by three IRS tests that must be met for all dependents: the dependent taxpayer test, the joint return test, and the citizen or resident test.

Any person claimed as a dependent by another taxpayer may not claim anyone as a dependent on their tax return. A taxpayer filing a joint return as a married person cannot be claimed by anyone as a dependent unless that dependent is filing a joint return to claim a refund of tax withheld or paid as estimated taxes. To be claimed as a dependent, a person must be a U.S. citizen, U.S. resident immigrant, U.S. national, or a resident of Canada or Mexico.

Couples that are married and filing jointly both claim dependents and share any tax benefits. In the case of separate returns, whether married or not, only one taxpayer may claim a given dependent on their income tax return. Dependency claims of separated or [divorced parents](https://www.investopedia.com/children-after-divorce-who-pays-for-what-who-gets-the-deductions-and-credits-5194368) are resolved in favor of the custodial parent.  

## Qualifying Child

To meet the IRC [relationship test](https://www.investopedia.com/terms/r/relationship-test.asp)—and be considered a qualifying child—the child must be:

*   The taxpayer’s son, daughter, stepchild, foster child placed by an authorized placement agency, or a descendant of any of them
*   The taxpayer’s brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them

To meet the IRC age test, the child must be:

*   Under age 19 at the end of the tax year and younger than the taxpayer or the taxpayer’s spouse if filing jointly
*   A full-time student under the age of 24 at the end of the year and younger than the taxpayer or spouse, if filing jointly

To meet the resident test, the child must have lived with the taxpayer for more than half of the year; however, there are exceptions to this rule. For example, if the child or the taxpayer is temporarily absent due to illness, education, business, vacation, military service, institutionalized care for a child who is permanently disabled, or incarceration, then the child is still considered part of the residence during this time.

### 50%

A child cannot have provided more than half of their financial support during the tax year and qualify as a dependent.

## Qualifying Relative

These tests apply only when the tests for a qualifying child are not met. Unlike a qualifying child, a qualifying relative can be any age. A [qualifying relative](https://www.investopedia.com/terms/q/qualifying-relative.asp) does not meet the qualifying test, but meets the member of household or relationship test, the gross income test, and the support test.

The person either must live as a member of the taxpayer’s household all year or be related to the taxpayer. It is important to note that an adopted child is treated the same as a natural child and that any relationships established by marriage are not ended by death or divorce.

To meet the gross income test, the dependent’s gross income for the tax year must be less than the threshold amount. This amount changes every year. For the 2024 tax year, it is $5,050.The taxpayer must have provided more than 50% of the person’s total support for the tax year. This support test differs from a qualifying child, which tests whether the child provided more than half of their support for the year.

> **Important**
>
> The deduction for personal exemptions is suspended until 2025. Although the exemption amount is zero, the ability to claim a dependent may make taxpayers eligible for other tax benefits.

## Tax Credits

### Earned Income Tax Credit (EITC)

The [Earned Income Tax Credit (EITC)](https://www.investopedia.com/terms/e/earnedincomecredit.asp) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit a taxpayer receives depends on income, whether filing as single or jointly and the number of children in their household.  

### Child Tax Credit (CTC)

For tax years 2024 and 2025, taxpayers can claim a [Child Tax Credit (CTC)](https://www.investopedia.com/terms/c/childtaxcredit.asp) of up to $2,000 for each child under age 18 if a taxpayer's income is not more than $200,000 or $400,000 if married filing jointly. If the credit exceeds the total taxes owed, taxpayers will receive up to $1,700 of the balance as a refund through the Additional Child Tax Credit.

### Child and Dependent Care Credit

Taxpayers may be able to claim the [child and dependent care credit](https://www.investopedia.com/terms/c/childanddependentcarecredit.asp) if they paid expenses for the care of a qualifying individual to work or actively look for work. The amount received is a percentage of the work-related expenses paid to a provider for the care of a qualifying individual, and the percentage depends on the taxpayer's adjusted gross income (AGI).

The credit is capped at 35% of eligible expenses for those who make less than $15,000 per year up to $3,000 for one qualifying individual and $6,000 for two or more qualifying individuals.

> **Tip**
>
> Investopedia's Tax Savings Guide can help maximize tax credits, deductions, and savings. Order one today.

### Education Credits

The two education credits are the [American Opportunity Tax Credit (AOTC)](https://www.investopedia.com/terms/a/american-opportunity-tax-credit.asp) and the [lifetime learning credit (LLC)](https://www.investopedia.com/terms/l/lifelearningcredit.asp). If the taxpayer has a dependent who attends a higher education institution, then the taxpayer will be eligible to claim the education credits associated with the dependent.

The AOTC is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. The LLC is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.

## What Is an Exemption?

An exemption reduces the amount of income subject to income tax. There are a variety of exemptions allowed by the Internal Revenue Service. Changes brought about by the [Tax Cuts and Jobs Act (TCJA)](https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/) suspended personal exemptions until the end of 2025. However, dependent exemptions still apply.

## What Is a Dependent for Tax Purposes?

A dependent, for tax purposes, is a qualifying child or relative of the taxpayer as laid out by the IRS. This includes a child, parent, sibling, or stepchild, but not a spouse. There are tax benefits a taxpayer can claim for having a dependent.

## How Much Is the Tax Credit for Each Dependent?

In tax years 2024 and 2025, the child tax credit for each dependent is $2,000, with a maximum refundable amount of $1,700.

## The Bottom Line

A dependent is someone who relies on another individual for support, usually a child or other relative. For tax purposes, dependents must meet certain qualifying tests: the dependent taxpayer test, the joint return test, and the citizen or resident test. [Taxpayers with dependents](https://www.investopedia.com/dependent-impact-on-taxes-11678396) are [eligible for certain tax benefits](https://www.investopedia.com/form-2441-child-and-dependent-care-expenses-definition-4783504), including the Child Tax Credit, the Child and Dependent Care Tax Credit, and certain educational credits.

> **Article Sources**
>
> 1.  Internal Revenue Service. "[Publication 4491](https://apps.irs.gov/app/vita/content/globalmedia/4491_dependency_exemptions.pdf)," Page 2.
>     
> 2.  Internal Revenue Service. "[Publication 501, Dependents, Standard Deduction, and Filing Information](https://www.irs.gov/pub/irs-pdf/p501.pdf)."
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>      
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>      
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>      
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>      
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>      
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>      
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>      
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>      
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>      
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>      
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