Final answer:
To qualify as a dependent, the person must not have provided more than half of their own support for the year. This support can be provided by others, and this is considered when determining someone's status as a qualifying child or qualifying relative on tax returns.
Step-by-step explanation:
In order to meet the criteria for a qualifying child or a qualifying relative, the IRS has specified that the dependent in question must not have provided more than half of his or her own support for the fiscal year. The concept of support includes expenses such as food, shelter, clothing, medical services, and others. If a dependent provides more than half of their own support, they may not qualify as a dependent on someone else’s tax return. It is important to note that even if the taxpayer did not provide the support themselves, as long as the dependent did not provide more than half, they may still be considered a qualifying dependent if all other criteria are met.
Support provided by other individuals may also factor into this determination, but the collective support provided by others still must exceed the amount the dependent provided for himself or herself. For example, if relatives or friends help contribute to the living expenses of the dependent, this can be considered towards the support threshold for tax purposes.
This information is crucial for accurately filing taxes, as claiming a dependent can provide various tax benefits such as credits and deductions, thereby potentially lowering the taxpayer’s taxable income. When preparing your taxes, ensuring you meet all the criteria for dependents is essential to avoid any discrepancies or issues with the IRS.