The Truth About Adult Dependents

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When you think of dependents, you probably think of children. And, while it is true that most dependents are children, there are also some circumstances under which the IRS allows you to classify adult dependents as dependents for tax purposes. The key is just knowing the rules and whether or not they apply to your situation.   

What’s Your “Relationship Status?”

Sometimes, whether or not you can classify a person as an adult dependent is all about your relationship with that person. Some people count as “qualifying relatives.”

People who generally count are sisters and brothers or half or step sisters and brothers, parents and stepparents, grandparents, nieces, nephews, aunts, uncles, and the like. As long as you are providing verifiable monetary support for these people, you can generally classify them as dependents as long as other guidelines are met, even if they don’t live with you.

You can also claim an unrelated dependent, as long as that person lives in your home. If you think you might have a qualifying dependent relationship, check with your tax professional to learn how to proceed.

Multiple Support

Another thing you should know is that you don’t necessarily have to provide all of the support for another person in order to count him or her as a dependent. Even if you are getting help from others, as long as your own personal contribution is 51% of more, you can still count the person as a dependent. Even if you’re not, if the other caregivers sign a Multiple Support agreement allowing you to do so, you can claim that person as a dependent.

As you can see, the rule about claiming adult dependents can be tricky, and these are just a couple of many. Thus, before attempting to claim an adult dependent, it is always wise to seek help from a tax professional.