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Tax Drill $-$ Tests for Qualifying Relative

Complete the following statements regarding the gross income and support tests for the category of dependency exemption designated as

the qualifying relative.

Gross Income Test:

A dependent's gross income must be less than $$,x,$ the exemption amount $$ Gross income is determined by

the income that is

Support Test:

Over

$\%$ of the support of the qualifying relative must be furnished by the taxpayer. If the individual does not spend

funds that have been received from any source, the unexpended amounts

$$ counted for purposes of the support test.

Under a multiple support agreement, one member of a group of taxpayers who furnish support for a qualifying relative may claim a

dependency exemption if together the group provides over

$\%$ of the support. Any person who contributed more than

$\%$ of the support is entitled to claim the exemption if each person in the group who contributed more than

$\%$ files a written consent.

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Under the Internal Revenue Code, there are two types of dependents$-$a qualifying child and a qualifying relative. Unique tests apply to each type

of dependent. Even though the exemption deduction for dependents has been suspended through $2025,$ understanding the qualifying

requirements for a dependent remains important. For example, the child tax credit and dependent tax credit are provided to individual taxpayers

based on the number of their qualifying children and dependents. A person must meet the dependency tests for either a qualifying child or

qualifying relative.

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