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A person is still considered to be living with you as a member of your household during any period when either of you is temporarily absent due to special circumstances, such as: * Illness *

Attending college * Business trips * Vacations * Military service * Nursing home placement (even if for an indefinite period) 6. GROSS INCOME TEST This test is often the hardest to

satisfy. For the 2024 tax year, the gross income of the person you’re supporting must be less than $5,050 ($5,200 for 2025). Income that isn’t exempt from tax is included in a person’s

gross income. This includes all taxable Social Security benefits and unemployment compensation. However, if a person has a permanent and total disability, certain income for services

performed at a sheltered workshop might not count as gross income. 7. SUPPORT TEST Generally, you must have provided more than 50 percent of the person’s total support during the tax year.

For this purpose, total support includes all money spent to provide food, housing, clothing, medical and dental care, education, transportation, recreation and similar necessities. Special

rules apply if two or more people helped support an individual but no one in the group provided more than half of that person’s total support for the year. In that case, the people providing

support can agree that one person from the group can claim the supported person as a dependent. However, the person selected must have supplied more than 10 percent of the person’s total

support. The other support providers must sign a statement affirming that they won’t claim the supported person as a dependent for that tax year. HOW CLAIMING A DEPENDENT CAN CUT YOUR TAX

BILL If you can claim an adult as a dependent, you might be able to claim certain tax credits and deductions or use a more favorable filing status, which can reduce your overall tax burden.

(A deduction reduces your taxable income, which reduces your tax bill; a credit reduces your tax bill, dollar for dollar.) Here are six tax benefits that might be available if you satisfy

all seven of the tests above for having a qualifying relative. 1. CREDIT FOR OTHER DEPENDENTS Most people have heard of the child tax credit, which is generally available to people with

dependents who are qualifying children (assuming the child is 16 or younger and has a Social Security number). However, the child tax credit is not available for dependents who are

qualifying relatives. Instead, the credit for other dependents can generally be claimed for each qualifying relative. However, your relative must have a Social Security number, individual

taxpayer identification number or adoption taxpayer identification number by the due date for your federal income tax return (including any tax filing extensions). They also can’t be

residents of Canada or Mexico for this tax credit. The credit for other dependents is worth up to $500 for each qualifying dependent. However, it’s gradually phased out (potentially to zero)

for joint filers with a modified adjusted gross income (AGI) of more than $400,000 and other taxpayers with a modified AGI greater than $200,000. (Modified AGI is your AGI from line 11 of

your Form 1040, plus certain exclusions and deductions for people living outside the U.S. and residents of American Samoa or Puerto Rico.) 2. CHILD AND DEPENDENT CARE CREDIT This is another

tax credit primarily associated with the cost of care for younger children. However, it can also be claimed for expenses related to the care of adult dependents who aren’t able to care for

themselves and have lived with you for more than half of the tax year. The dependent care expenses must be work-related (that is, paid to enable you, or your spouse if you’re filing a joint

return, to work or look for work). The credit is equal to a percentage of the first $3,000 of qualifying work-related expenses for one dependent or the first $6,000 of expenses if you’re

paying for the care of two or more dependents. The share of those expenses you can claim as a credit ranges from 20 percent to 35 percent, depending on your AGI (the lower your income, the

higher the percentage). As a result, the maximum credit is $1,050 for one dependent or $2,100 for more than one dependent. 3. EDUCATION CREDITS If your support includes paying tuition and

other education costs for an adult dependent, you might be able to claim the American Opportunity credit or the Lifetime Learning credit for those expenses. The American Opportunity tax

credit is generally available for the first four years of college and can be as high as $2,500 per eligible student per year. The Lifetime Learning credit is only worth up to $2,000 per

eligible student per year but is not restricted to expenses for the first four years of college. Both credits are gradually phased out if your modified AGI is between $80,000 and $90,000

($160,000 to $180,000 for married couples filing a joint return.