Q. Just to make sure, did I do this correctly?
A. Yes, she qualifies as your dependent, primarily because her income was less than $4300.
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 and student status test, a relationship test and a residence test. She cannot be a QC because she is too old.
A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:
- Closely Related OR live with the taxpayer ALL year
- His/her gross taxable income for the year must be less than $4300 (2020).
- The taxpayer must have provided more than 1/2 his support
- He must be a US citizen or resident of the US, Canada or Mexico
- He must not file a joint return with his spouse or be claiming a dependent of his own.
- He must not be the qualifying child of another taxpayer
The Other dependent credit is worth (up to) $500 per dependent and is non-refundable. That is, it can only be used to reduce an actual tax liability. A QR dependent does not qualify the taxpayer for the earned income credit.
Q. Can she file her taxes and state she was claimed as a dependent on another person taxes?
A. Yes. But she is not required to
