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2. Be related to you in one of the ways listed If the person is placed in a nursing home for Disabled dependent working at sheltered
under Relatives who don’t have to live with an indefinite period of time to receive constant workshop. For purposes of the gross income
you next. medical care, the absence may be considered test, the gross income of an individual who is
temporary. permanently and totally disabled at any time
If at any time during the year the person was during the year doesn't include income for serv-
your spouse, that person can’t be your qualify- Death or birth. A person who died during the ices the individual performs at a sheltered work-
ing relative. year, but lived with you as a member of your shop. The availability of medical care at the
Relatives who don’t have to live with you. A household until death, will meet this test. The workshop must be the main reason for the indi-
same is true for a child who was born during the
person related to you in any of the following year and lived with you as a member of your vidual's presence there. Also, the income must
ways doesn't have to live with you all year as a household for the rest of the year. The test is come solely from activities at the workshop that
member of your household to meet this test. also met if a child lived with you as a member of are incident to this medical care.
• Your child, stepchild, foster child, or a de- your household except for any required hospital A “sheltered workshop” is a school that:
scendant of any of them (for example, your stay following birth. • Provides special instruction or training de-
grandchild). (A legally adopted child is If your dependent died during the year and signed to alleviate the disability of the indi-
considered your child.) you otherwise qualify to claim that person as a vidual; and
• Your brother, sister, half brother, half sis- dependent, you can still claim that person as a • Is operated by certain tax-exempt organi-
ter, stepbrother, or stepsister. dependent. zations, or by a state, a U.S. possession, a
• Your father, mother, grandparent, or other Example. Your mother died on January 15. political subdivision of a state or posses-
direct ancestor, but not foster parent. She met the tests to be your qualifying relative. sion, the United States, or the District of
Columbia.
• Your stepfather or stepmother. You can claim her as a dependent. Permanently and totally disabled has the
• A son or daughter of your brother or sister. Local law violated. A person doesn't meet same meaning here as under Qualifying Child,
• A son or daughter of your half brother or this test if at any time during the year the rela- earlier.
tionship between you and that person violates
half sister. local law.
• A brother or sister of your father or mother. Support Test (To Be a Qualifying
Relative)
Example. Your girlfriend lived with you as a
• Your son-in-law, daughter-in-law, fa- member of your household all year. However,
ther-in-law, mother-in-law, brother-in-law, To meet this test, you must generally provide
or sister-in-law. your relationship with her violated the laws of more than half of a person's total support during
the state where you live because she was mar-
Any of these relationships that were established ried to someone else. Therefore, she doesn't the calendar year.
by marriage aren't ended by death or divorce. meet this test and you can’t claim her as a de- However, if two or more persons provide
pendent. support, but no one person provides more than
Example. You and your wife began sup- half of a person's total support, see Multiple
porting your wife's father, a widower, in 2014. Adopted child. An adopted child is always Support Agreement, later.
Your wife died in 2019. Despite your wife's treated as your own child. The term “adopted How to determine if support test is met.
death, your father-in-law continues to meet this child” includes a child who was lawfully placed You figure whether you have provided more
test, even if he doesn't live with you. You can with you for legal adoption. than half of a person's total support by compar-
claim him as a dependent if all other tests are Cousin. Your cousin meets this test only if he ing the amount you contributed to that person's
met, including the gross income test and sup- or she lives with you all year as a member of support with the entire amount of support that
port test. your household. A cousin is a descendant of a person received from all sources. This includes
Foster child. A foster child is an individual brother or sister of your father or mother. support the person provided from his or her
who is placed with you by an authorized place- own funds.
ment agency or by judgment, decree, or other Gross Income Test You may find Worksheet 3-1 helpful in figur-
order of any court of competent jurisdiction. To meet this test, a person's gross income for ing whether you provided more than half of a
Joint return. If you file a joint return, the per- the year must be less than $4,300. person's support.
son can be related to either you or your spouse. Person's own funds not used for support.
Also, the person doesn't need to be related to Gross income defined. Gross income is all A person's own funds aren't support unless they
the spouse who provides support. income in the form of money, property, and are actually spent for support.
For example, your spouse's uncle who re- services that isn't exempt from tax.
ceives more than half of his support from you In a manufacturing, merchandising, or min- Example. Your mother received $2,400 in
may be your qualifying relative, even though he ing business, gross income is the total net sales social security benefits and $300 in interest.
doesn't live with you. However, if you and your minus the cost of goods sold, plus any miscella- She paid $2,000 for lodging and $400 for recre-
spouse file separate returns, your spouse's un- neous income from the business. ation. She put $300 in a savings account.
cle can be your qualifying relative only if he lives Gross receipts from rental property are Even though your mother received a total of
with you all year as a member of your house- gross income. Don’t deduct taxes, repairs, or $2,700 ($2,400 + $300), she spent only $2,400
hold. other expenses to determine the gross income ($2,000 + $400) for her own support. If you
spent more than $2,400 for her support and no
Temporary absences. A person is considered from rental property. other support was received, you have provided
Gross income includes a partner's share of
to live with you as a member of your household the gross (not a share of the net) partnership in- more than half of her support.
during periods of time when one of you, or both, come.
are temporarily absent due to special circum- Gross income also includes all taxable un- Child's wages used for own support. You
stances such as: employment compensation, taxable social se- can’t include in your contribution to your child's
support any support paid for by the child with
• Illness, curity benefits, and certain scholarship and fel- the child's own wages, even if you paid the wa-
• Education, lowship grants. Scholarships received by ges.
degree candidates and used for tuition, fees,
• Business, supplies, books, and equipment required for Year support is provided. The year you pro-
• Vacation, particular courses generally aren't included in vide the support is the year you pay for it, even
if you do so with borrowed money that you re-
• Military service, or gross income. For more information about pay in a later year.
scholarships, see chapter 8.
• Detention in a juvenile facility. If you use a fiscal year to report your in-
come, you must provide more than half of the
Chapter 3 Dependents Page 33