Can a friend who lives with us be considered a deductable if he received a workers compensation settlement but has not had a job all year?

[madshellsearcher]

received settlement in June. No job all year. Has lived with us the entire year.

[Texas Roger · Accepted solution]

The fried would need to meet the following tests for you to be able to claim him as a dependent:

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.

2. The person either (a) must be related to you or (b) must live with you all year as a member of your household. 

3. The person's gross  taxable income for the year must be less than $4,050 in 2016. Worker's compensation would not be included in this limit.

4. You must provide more than half of the person's total support for the year. Worker's compensation must be included in determining whether you provided more than half your friend's support or not.

5. The person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.