Qualifying Relative

Date: Monday, September 8, 2008
Time: 11 PM
Place: Kitchen

Besides establishing the concept of qualifying child, the Working Families Tax Relief Act of 2004 also provided for a second category of dependency exemption designated as the qualifying relative. The rules involved largely carried over then- existing law to post-2004 years

The relationship test for a qualifying relative is more expansive than for a qualifying child. Also included are the following relatives:
- lineal ascendants (e.g., parents, grandparents)
- collateral ascendets (e.g., uncles, aunts)
- certain in-laws (e.g., son-in law, mother-in law)

Children who do not meet the qualifying child definition may meet the qualifying relative criteria.
The relationship test also includes unrelated parties who live with the taxpayer. Member-of-the-household status is not available to anyone whose relationship with the taxpayer violates local law or anyone who was a spouse during any part of the year. However, an ex-spouse can qualify as a member of the household in a year following that of the divorce.
As the relationship test indicates, the category designation of "qualifying relative" is somewhat misleading. As just noted, persons other than relatives can qualify as dependents. Furthermore, not all relatves will qualify.