Question

To be considered a relative for tax purposes, does the person need to live with the taxpayer and provide more than half of the dependent's support?

1) Yes
2) No

Answer 1

No, a person does not need to live with the taxpayer to be considered a relative for tax purposes, but they must provide more than half of the dependent's support. option 2 is correct.

Step-by-step explanation:

To answer the question of whether a person needs to live with the taxpayer and provide more than half of the dependent's support to be considered a relative for tax purposes, the answer is No. For tax purposes, a relative does not necessarily need to live with the taxpayer to be claimed as a dependent.

However, the person claiming the dependent must provide more than half of the dependent's financial support during the year. Different family structures, including extended families, often play a role in dependency for tax purposes. Grandparents, aunts, uncles, and cousins who may or may not live with the individual can sometimes be claimed depending on the specific tax laws and their fulfilment of certain IRS criteria.