What Is a Dependent?

By Robin Hartill, CFP – Updated Dec 16, 2024 at 10:42 AM

Key Points

Claiming a dependent reduces taxable income, elevating potential tax savings.
Qualifying relatives must earn under $4,700 and receive over 50% of support from you.
Dependent claims can secure higher tax credits and deductions for child care costs.

If you provide more than half of someone's support, you may be able to claim them as a dependent when you file your taxes, which can reduce the amount you owe. But the IRS has strict rules for who counts as a dependent. In this article, we'll explain this and more.

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Tax documents on a desk with a pen, calculator, and note that says Tax Time. — Image source: Getty Images.

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Tax Deduction

A tax deduction occurs when a certain expense can be used to reduce the amount of your income subject to income taxes.

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Tax Credit

A direct reduction in tax liability, subtracted from what you owe, often based on specific actions or circumstances.

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About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

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