The income limit for a dependent is $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. 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 yearHis/her gross taxable income for the year must be less than $4300 (2020).The taxpayer must have provided more than 1/2 his supportIn either case:He must be a US citizen or resident of the US, Canada or MexicoHe must not file a joint return with his spouse or be claiming a dependent of his ownHe must not be the qualifying child of another taxpayerOnly a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. Only a related person qualifies you for Head of Household filing status. The Other dependent (qualifying relative) 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. So, for 2020, claiming your friend as a dependent is only worth $500 (maybe less) to you. Not being claimed as a dependent is worth $1800 (and maybe soon to be another $1400) in stimulus money to her (unless she already got it in 2020). Note: A potential dependent's disability status is not relevant under the qualifying relative rules. Disability only extends the age at which a related child can qualify under the Qualifying child rulers.

Question

I had a friend who lived with me all of last year she was disabled and did not earn over 5,000 for the year and she did not cover any of the living expenses I paid for everything from power to food ca

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January 16, 2021
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xmasbaby0

Employee

If your friend had over $4300 of income in 2020 you cannot claim her as a a dependent. If she had less than $4300 of income ---not counting Social Security -- and lived with you for the entire year, you might be able to claim her as a qualifying relative. You would get a $500 credit for other dependents. You would NOT receive stimulus money for claiming her (and she will not receive stimulus money if claimed as a dependent).

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-credit

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al

Employee

The income limit for a dependent is $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.

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

In either case:

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

Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. Only a related person qualifies you for Head of Household filing status. The Other dependent (qualifying relative) 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.

So, for 2020, claiming your friend as a dependent is only worth $500 (maybe less) to you. Not being claimed as a dependent is worth $1800 (and maybe soon to be another $1400) in stimulus money to her (unless she already got it in 2020).

Note: A potential dependent's disability status is not relevant under the qualifying relative rules. Disability only extends the age at which a related child can qualify under the Qualifying child rulers.