Dependents

Can a taxpayer claim a dependency for an individual who isn’t a relative? The internal revenue code lists eight qualifying relationships, seven of which involve various familial relationships. The eighth type of qualifying relationship applies to an individual who has the same principal place of abode as the taxpayer and is a member of the taxpayer’s household for the taxable year.

In order for an individual to be considered a member of a taxpayer’s household, the taxpayer must maintain the household and both the taxpayer and the individual must occupy the household for the entire taxable year. The taxpayer maintains a household when he or she pays more than one-half of the expenses for the household.

The preceding is a general discussion on dependency. Call us to discuss your specific tax circumstances before filing your tax return. Office 626-305-4220.