Can Max Be a Dependent? The IRS Rule You Must Know About Living With Your Aunt!

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Young man discussing taxes with his aunt at home – IRS dependent rule concept

Scenario: max is 20 years old and lives with his aunt year-round. she pays for more than 50% of his living expenses. for max to be considered a dependent of his aunt, what else must happen? That short sentence nails the exact situation — but the IRS tests are a little more detailed. This article walks you through, step-by-step, what else must be true for Max to be claimed as a dependent on his aunt’s tax return.

Quick answer (one-sentence)

If Max is not a qualifying child (because of the age/student rules), he could still be a qualifying relative — but he must meet the IRS’s relationship/residency, gross income, support, citizenship, and filing-status tests (and only one taxpayer can claim him).

Step 1 — Which dependent test applies: qualifying child or qualifying relative?

The IRS recognizes two paths to be a dependent: qualifying child or qualifying relative. A nephew can be a qualifying child, but age and student-status rules matter. If those fail, you look to the qualifying-relative rules.

Why Max may NOT be a qualifying child

  • The age test for a qualifying child generally requires the child to be under 19 at year-end, or under 24 if a full-time student for at least five months. At age 20, Max only meets the age test if he is a full-time student. If he is not a student, he fails the age test and cannot be a qualifying child.

Step 2 — The qualifying relative path (most likely for your scenario)

Because Max is 20 and living with his aunt, the qualifying relative rules are likely the route his aunt would use to claim him. To be a qualifying relative, several specific tests must be met. Below is a plain-language checklist and what each test means.

Important: The aunt already meets one big requirement if she truly pays more than half of Max’s living expenses — that’s the “support” test — but it’s not the only requirement. Read on.

Qualifying relative checklist (what else must happen)

  • Relationship test: Max must be related to the aunt in a way recognized by the IRS (niece/nephew counts). Since Max is a nephew, the relationship test is satisfied.
  • Gross income test: Max’s gross income for the tax year must be less than the IRS threshold for a qualifying relative. (The IRS updates this amount periodically. For recent years this threshold has been roughly in the low-$5,000 range — check the current year before filing.)
  • Support test: The aunt must provide more than half of Max’s total support for the year. You already said she pays >50% — that satisfies the requirement, provided the calculation is correct and no other person provides more support.
  • Citizen/residency test: Max must be a U.S. citizen, U.S. national, U.S. resident, or resident of Canada or Mexico.
  • Joint return test: Max must not file a joint return with a spouse (unless that joint return is filed only to claim a refund). If he files a joint return with a spouse, the aunt generally cannot claim him.
  • Not someone else’s dependent: Max must not be claimed as a dependent by another taxpayer (for example, his parent). If two people try to claim the same dependent, special tiebreaker rules apply.

How to check the gross income test (practical example)

The gross income test uses the dependent’s unadjusted gross income for the tax year — that is, all income before adjustments. If Max earned wages, interest, or other income, add those up and compare them to the IRS gross-income threshold for that tax year. If his total is equal to or above the threshold, he fails the gross income test for qualifying relative status.

What if several family members chip in to support Max?

If more than one person provides support and no single person provides more than half, the group can sometimes use a multiple support agreement (Form 2120) to let one eligible contributor claim the dependent. That requires written agreement from the other contributors and meeting specific IRS rules. If the aunt provides more than 50% herself (your stated scenario), a multiple support agreement is not needed.

Common pitfalls & things to double-check

  • Don’t forget to include all sources of Max’s support in the calculation: housing, food, clothing, education, medical, and other expenses count.
  • Government benefits paid directly to Max (like Social Security) may reduce the aunt’s “support provided” calculation — check how benefits affect total support before claiming.
  • Age + student status: if Max becomes a full-time student for at least five months in the year, he might qualify as a qualifying child (age under 24 test), which has different advantages (and tiebreaker rules).
  • Always verify the current year gross income threshold on the IRS site before filing — the dollar amount is updated periodically.

Sample scenario — quick math

Suppose Max’s total support needs for the year are $12,000 (rent share, food, clothing, utilities, etc.). If the aunt provided $7,500 of that, she supplied 62.5% — that passes the support test. Now check gross income: if Max’s gross income for the year is $2,400 (from part-time work), he likely passes the gross income test (because the threshold is higher than that in recent years). If Max isn’t claimed by someone else and meets the citizenship/filer tests, the aunt could claim him as a qualifying relative.

FAQ

Q: Can my aunt claim me if I’m 20 but a full-time student?
A: If Max is a full-time student for at least five months of the year, he may instead meet the qualifying child age test (under 24), which changes how the rules apply — check the qualifying-child tests and tiebreaker rules.
Q: Does the aunt need to have documentation?
A: Yes. Keep records showing the support provided (bank transfers, receipts, rent agreements, bills paid) and any income statements for Max. Good documentation is useful if the IRS asks questions.
Q: What if Max receives Social Security or other benefits?
A: Benefits paid directly to Max count toward his total support and can affect whether the aunt is considered to have provided “more than half.” Review how each benefit is treated when calculating support.

Where to read the official rules

The IRS publishes plain-English guidance and detailed publications about dependents and the qualifying-relative/qualifying-child tests. For the most authoritative, up-to-date rules consult:

  • IRS — Dependents page.
  • IRS Publication 501 (Dependents, Standard Deduction, and Filing Information).
  • IRS qualifying-child rules for credits like EITC (for age/residency tests).
Bottom line: If Max’s aunt truly pays more than half his support, Max’s gross income is below the IRS threshold, he meets the citizenship/filer rules, and no one else is claiming him, then he can be claimed as her dependent as a qualifying relative. For absolute certainty, double-check the current gross-income limit and supporting documentation before filing.

This article is for general information only and does not replace professional tax advice. For specific filing questions, consult a CPA or the IRS directly.