What defines a dependent for tax purposes?

For tax purposes, a dependent is defined by specific criteria laid out in the Internal Revenue Code, which includes both qualifying children and qualifying relatives. The correct understanding that a dependent is someone for whom the taxpayer claims a deduction on their tax return reflects the essential aspect of tax benefits associated with dependents.

When claiming a dependent, the taxpayer may be eligible for various tax benefits, such as tax credits and deductions that can reduce taxable income. To qualify as a dependent, individuals must meet particular requirements regarding relationship, residence, age, support, and joint return status, among others. This relationship is critical as it directly influences the taxpayer's financial treatment during tax filing.

In contrast, while living with the taxpayer, employment, or being a relative may establish a connection, these factors alone do not meet the specific IRS criteria necessary for a dependent designation. The official claim for a deduction is what qualifies an individual or relative as a dependent for tax purposes, which is fundamentally tied to the taxpayer's financial responsibilities and claims made in the tax filing process.