If the cousin passes all the tests to be a qualifying relative then you can claim them .....
Here are the complete rules for Claiming an Exemption
for a Dependent:
- You cannot claim any dependents if you, or
your spouse if filing jointly, could be claimed as a dependent by another
taxpayer.
- You cannot claim a married person who files
a joint return as a dependent unless that joint return is only a claim for
refund and there would be no tax liability for either spouse on separate
returns.
- You cannot claim a person as a dependent
unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a
resident of Canada or Mexico.
- You cannot claim a person as a dependent
unless that person is your qualifying child or qualifying relative.
Requirements to be a Qualifying Relative:
1. The person cannot be your qualifying child
or the qualifying child of any other taxpayer.
2. The person either (a) be related to your in
one of the following ways:
Your child, stepchild, foster child, or a
descendant of any of them
Your brother, sister, half brother, half
sister, stepbrother, or stepsister.
Your father, mother, grandparent, or other
direct ancestor, but not foster parent.
Your stepfather or stepmother.
A son or daughter of your brother or sister.
A brother or sister of your father or mother.
Your son-in-law, daughter-in-law, father-in-law,
mother-in-law, brother-in-law, or sister-in-law.
or (b) must live with you all year as a member
of your household (and your relationship must not violate local law).
3. The person's gross income for the year must
be less than $4,000 (social security does not count).
4. You must provide more than half of the
person's total support for the year.
There is a very good worksheet to help you
determine how much support you provide. It is on page 15 of IRS Pub. 501
http://www.irs.gov/pub/irs-pdf/p501.pdf
