There
are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying
Relative" in IRS parlance even though they don't have to actually be
related). There is no income limit for a QC but there is an age limit, a relationship test and a residence test. Only a QC
qualifies the taxpayer for the Earned Income Credit.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if he is under age 19, or under 24
if a full time student for at least 5 months of the year, or is totally &
permanently disabled.
After age 23, the income test kicks in.
The 6 tests for claiming a qualifying relative dependent:
1. Closely Related OR live
with the taxpayer ALL year
2. His/her gross taxable income for the year must be less than $4,050 (2016)
3. The taxpayer must have
provided more than 1/2 his support
In either case:
4. He must be a US citizen or resident of the US, Canada
or Mexico
5. He must not file a joint
return with his spouse or be claiming a dependent of his own
6. He must not be the
qualifying child of another taxpayer
