Qualifying dependents and relatives 101: unlock tax benefits

The rules determining a qualifying dependent can be complex and often confusing. This can be complicated for you if your clients are separated, divorced or have another family dynamic because there are many different aspects to consider.

Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.   

Q: What documents are acceptable as proof of a child’s residency?

A: School, doctor, dentist or other records that show the child lived at that residence.

Q: Do Social Security benefits count as income for the support test?

A: Social Security benefits do not count toward the gross income test; however, they are considered when determining support.

Q: Can a divorce decree declare a custodial parent regardless of the number of nights?

A: No. However, if a parent violates the divorce decree, the other parent can take legal action. Tax rules are not dependent on the divorce decree.

Q: For divorced parents, what happens if the child spends an equal number of nights with both parents but also spends two weeks at sleepover camp?

A: The two weeks at sleepover camp count toward the parent who would have had the child during those nights had the child not gone to camp.

To learn more about identifying qualifying dependents and qualifying relatives, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial.