Can an Adult Be a Dependent for Tax Purposes?

Claiming a dependent can go a long way toward reducing your overall tax liability. In fact, the many benefits of doing so has plenty of people scrambling and hoping to classify others as their dependents. However, the tax laws are quite strict on who does and who does not qualify as a dependent. With that said, though, contrary to popular belief, not all dependents are minor children. In some cases, an adult can legally be classified as your dependent.     

The Importance of a Qualifying Relationship  

First things first, in order to claim another adult as your dependent, that person must have what the IRS considers a “qualifying relationship” with you. Normally, this would be someone who is a close relative, such as a sibling, half-sibling, step-sibling, or other close relation, whether they live with you or not. In the case of adult, non-related dependents, on the other hand, the person must live with you. Your relationship also cannot be illegal in your state.  

Income Matters 

Keep in mind, as well, that your adult dependent cannot earn too much money in order to be classed as such. They must have a taxable income that is below the personal exemption amount in a given tax year. 

Support is Considered  

Finally, understand that you must provide more than half of the financial support for your adult dependent in order to legally be able to claim them on your tax return.  

Still, Seek Advice  

Even if you feel fully confident that your adult dependent meets all of the qualifications described above, it’s still smart to seek professional financial advice before claiming the person. While adult dependents are not uncommon, they’re also not completely common, and you don’t want to do anything that could raise red flags with the IRS, at least not without the validation you need to back up your claims.  

For this reason, it’s smart to have a tax expert guiding you as you make your decisions about who and what to claim. In fact, this is good advice to follow for any uncommon or even slightly uncommon tax situation that you might find yourself in.