• Is a taxpayer's cousin considered his relative for tax purposes?

Expert Solution

A Qualifying Relative is claimed as a dependant by a taxpayer on the groud of assumption that the taxpayer is providing considerable financial support to the qualifying relative during the tax year.

There are four condition for a person to be classified as a Qualifying Relative.

1) The Qualifying Relative should not be a Qualifying Child of the taxpayer or anyone else.

2) The Qualifying Relative must have received financial support for the year from the taxpayer.

3) The Qualifying Relative must have a gross income of less than specified limit by concerned authority.

4) The Qualifying Relative must either live in the taxpayer household all year or to be related to a taxpayer as a child, sibling, parent, grandparent, niece or nephew, aunt or uncle, certain in law or certainstep relative.

Answer to our Question :- The Taxpayer Cousin considered to be his relative if he fullfill all the four condition stated above means he should get financial support from the taxpayer during the year and he should not be a Qualifying child of any one else.And Cousin should not earn more than the specified liit by the concerned authority.

ekkarill92 answered 2 years ago

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