Question

The gross income test requires that a qualifying relative's gross income for the year be less than the ________ amount.

Answer 1

The gross income test requires a qualifying relative’s income to be below a certain threshold amount.

Step-by-step explanation:

The gross income test requires that a qualifying relative's gross income for the year be less than the threshold amount. This threshold amount varies depending on the specific tax year and the relationship between the taxpayer and the qualifying relative.

For example, in 2021, if a taxpayer is claiming a dependent as a qualifying relative, the gross income of that dependent must be less than $4,300 for the year in order to meet the gross income test.

It's important to consult the current tax laws and guidelines to determine the specific threshold amount for a given tax year.

Answer 2

The gross income test requires a qualifying relative's gross income for the year to be less than the exemption amount specified by the IRS, which changes annually and was $9,350 for a single individual in 2013.

Step-by-step explanation:

The gross income test requires that a qualifying relative's gross income for the year be less than the exemption amount. This exemption amount can change yearly and is established by the IRS. For example, in 2013, for a single individual, the exemption together with the standard deduction amounted to $9,350. To be a qualifying relative for tax purposes, the individual's income must be below this threshold. It is important to note that this income threshold does not include non-taxable income when accounted for in the gross income test.