Tax Drill Tests for Qualifying Relative
Complete the following statements regarding the gross income and support tests for the category of dependency exemption designated as
the qualifying relative.
Gross Income Test:
A dependent's gross income must be less than $ the exemption amount Gross income is determined by
the income that is
Support Test:
Over
of the support of the qualifying relative must be furnished by the taxpayer. If the individual does not spend
funds that have been received from any source, the unexpended amounts
counted for purposes of the support test.
Under a multiple support agreement, one member of a group of taxpayers who furnish support for a qualifying relative may claim a
dependency exemption if together the group provides over
of the support. Any person who contributed more than
of the support is entitled to claim the exemption if each person in the group who contributed more than
files a written consent.
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Under the Internal Revenue Code, there are two types of dependentsa qualifying child and a qualifying relative. Unique tests apply to each type
of dependent. Even though the exemption deduction for dependents has been suspended through understanding the qualifying
requirements for a dependent remains important. For example, the child tax credit and dependent tax credit are provided to individual taxpayers
based on the number of their qualifying children and dependents. A person must meet the dependency tests for either a qualifying child or
qualifying relative.
