How To Claim Someone As Dependent
1. Qualifying Relative Requirements
To claim someone as a dependent under the “qualifying relative” rules, the following criteria must be satisfied:
a. Relationship Test
- The individual does not need to be related to you if they lived with you for the entire tax year.
- Since your roommate has been living with you for two years, they meet this test.
b. Gross Income Test
- The person you claim as a dependent must have gross income of less than $4,700 (in 2023; this threshold may change slightly each year).
- If your roommate has no income, they meet this test.
c. Support Test
- You must provide more than 50% of their total financial support for the year.
- Since you cover all their living expenses, you likely satisfy this test.
d. Dependent Cannot File a Joint Return
- Your roommate must not file a joint tax return with another person (e.g., a spouse) unless it’s solely to claim a refund.
- Assuming this is not an issue, they meet this test.
e. Citizenship or Residency Test
- The dependent must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.
- Confirm your roommate meets this criterion.
2. Key Considerations
- Educational Tax Credits: If your roommate is a student, they may be eligible for certain education credits. If they claim these credits on their own return, you cannot claim them as a dependent.
- Tax Return Impact: Claiming a dependent can provide you with an additional $500 non-refundable Credit for Other Dependents, which reduces your tax liability.
3. What You Need to Do
- Ensure your roommate meets all the tests above, especially the gross income and support tests.
- Keep detailed records of the financial support you provided, including rent, food, utilities, and any other expenses.
- Have a conversation with your roommate to confirm they’re not planning to file their own return claiming personal exemptions or credits.