Gavin Howe
Tax dependents are an important aspect of filing taxes each year. Dependents can help taxpayers qualify for various tax benefits, which ultimately reduce the amount of tax owed. The Internal Revenue Service (IRS) defines a dependent as a qualifying child or a qualifying relative. A qualifying child must be related to the taxpayer and meet certain age requirements, while a qualifying relative must be a US citizen or resident and meet certain income requirements. In-laws, such as a daughter-in-law, can be claimed as a dependent if they meet the requirements for a qualifying relative.
| Characteristics | Values |
|---|---|
| Relationship | Daughter-in-law |
| Status | Qualifying relative |
| Residency | Must live with you for the entire year |
| Gross Income | Must be below $4,700 (for 2023) |
| Support | Must receive more than half of their financial support from you |
| Citizenship | Must be a U.S. citizen or U.S. resident |
| Tax Return | Must not file a joint tax return unless to claim a refund |
| Other Dependents | Cannot be anyone's qualifying child |
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What You'll Learn
Daughter-in-law as a qualifying relative
To claim your daughter-in-law as a dependent, she must meet the criteria of a qualifying relative. The Internal Revenue Service (IRS) defines a dependent as a qualifying child or a qualifying relative. A qualifying child must be related to you and meet the age requirement, while a qualifying relative must be related to you and meet certain income and support criteria.
Your daughter-in-law can be considered a qualifying relative if she is not a qualifying child of anyone else and meets the gross income and support criteria. For the 2023 tax year, her gross income must be below $4,700, and she must receive more than half of her financial support from you. Additionally, she must be a U.S. citizen or U.S. resident and cannot file her tax return as "Married Filing Jointly" unless claiming a refund for withheld income taxes.
It is important to note that your daughter-in-law does not have to live with you all year to be considered a qualifying relative, but she must live with you for the entire year if she is to be considered a member of your household. Furthermore, your daughter-in-law's income does not disqualify her as a dependent, and you can still claim her even if she earns an income or receives government assistance.
To claim your daughter-in-law as a dependent, ensure that she meets the criteria for a qualifying relative and that you comply with federal tax laws. Additionally, you may need to provide her Social Security number on your tax return.
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Relationship test
To claim your daughter-in-law as a dependent, she must meet the criteria for a qualifying relative. This means that she must be related to you and not be the qualifying child of another taxpayer.
The relationship test for a qualifying relative is met if the person is related to you in one of the following ways:
- In-law: This includes a daughter-in-law, son-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
- Child, stepchild, or foster child, or a descendant of any of them (for example, your grandchild).
- Brother, sister, half-brother, half-sister, stepbrother, or stepsister.
- Direct ancestor: This includes your father, mother, grandparent, or other direct ancestor, but not a foster parent.
- Relative through marriage: This includes your stepfather, stepmother, son/daughter of your brother or sister, son/daughter of your half-brother or half-sister, or brother/sister of your father or mother.
It is important to note that your daughter-in-law must also meet other tests to be considered a dependent, such as the gross income test, residency test, and support test. Additionally, you should consult the specific laws in your state, as they may differ from federal laws regarding claiming dependents.
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Age requirement
To be eligible to be claimed as a dependent, a person must meet the criteria for being a qualifying child or a qualifying relative. The Internal Revenue Service (IRS) defines a dependent as a qualifying child (under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled) or a qualifying relative.
To be a qualifying child, the child must meet five tests: age, relationship, residency, support, and joint return. The age requirement for a qualifying child is that they must be under the age of 19 or under 24 if they are a full-time student. There is no age limit if the child is permanently and totally disabled. The child must also live with you for more than half of the year, but several exceptions apply.
The qualifying person must be your child, stepchild, foster child, sibling, or half-sibling (or the descendant of any of these). The child must be younger than you (or your spouse, if filing jointly), or be a "student" younger than 24 years old as of the end of the calendar year.
A dependent can only be claimed by one taxpayer. The payer of child support may be able to claim the child as a dependent if they are the child's custodial parent for federal income tax purposes. The custodial parent is the parent with whom the child lived for the greater number of nights during the year. If the payer is the noncustodial parent, then they may only claim the child as a dependent if the special rule for a child of divorced or separated parents (or parents who live apart) applies.
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Income considerations
The Internal Revenue Service (IRS) will usually let you claim your daughter-in-law as a dependent even if she works or earns an income, regardless of the income source, as long as certain requirements are met.
For the 2023 tax year, if your daughter-in-law is a qualifying dependent who is not a qualifying child (a "qualifying relative" in tax law), her gross income must be below $4,700. For qualifying relatives, they must receive more than half of their financial support from you. Essentially, it's not about how much income a qualifying child or qualifying relative has, but how much of their income they use for support.
Additionally, your daughter-in-law must be either a U.S. citizen or U.S. resident, and she must live with you for more than half of the year. There are exceptions for temporary absences, such as when your children are away at school.
It's important to note that your daughter-in-law cannot be anyone else's qualifying child, and she must not use "Married Filing Jointly" to file her tax return, unless she is only filing to claim a refund of income taxes withheld.
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Citizenship and residency
For nonresident aliens (NRAs), the criteria are more specific. NRAs who are US nationals or residents of Canada, Mexico, or South Korea can claim dependents. Additionally, residents of India who are students or business apprentices can also claim dependents. In the case of South Korea, the income tax treaty stipulates that the child must have lived with the NRA in the US during the tax year.
It is important to note that a dependent cannot be claimed on multiple tax returns, with very few exceptions. This means that a dependent cannot claim a dependent of their own. Additionally, if a child lives with each parent for different portions of the year, only the parent with whom the child resides for a longer period can claim the child as a dependent, known as the custodial parent. The non-custodial parent can only claim the child with a signed Form 8332 from the custodial parent.
The residency requirements for claiming a dependent also extend to the duration and nature of their stay. For a dependent to qualify, they typically must live with the taxpayer for more than half of the year, with some exceptions. Students who live away from home for school are generally still considered to live with their parents, and their time away is regarded as a temporary absence. However, if a dependent, including a student, establishes their own permanent home or domicile, they are no longer considered to be living with the taxpayer and cannot be claimed as a dependent.
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Frequently asked questions
Yes, you can claim your daughter-in-law as a dependent if she is a qualifying relative.
A qualifying relative is a person who is not a qualifying child and whose gross income for the 2023 tax year is below $4,700. They must get more than half of their financial support from you and must not be filing taxes jointly with anyone else.
A qualifying child is someone who is under the age of 19 or under 24 if they are a full-time student. There is no age limit if the child is totally disabled. They must live with you for more than half the year and must not provide more than half of their own financial support.
Claiming someone as a dependent can help you qualify for various tax benefits, ultimately reducing the amount of tax you owe.
The person you are claiming as a dependent must be a U.S. citizen or U.S. resident. They must also not be claimed as a dependent by any other taxpayer.
