Definition
A qualifying child or relative you support who can be claimed on your tax return, which can open credits and a better filing status.
What it means
For federal taxes, a dependent is either a qualifying child or a qualifying relative. A qualifying child generally must be your child, stepchild, foster child, sibling or a descendant of one of them, live with you for more than half the year, be under 19, or under 24 if a full-time student, or any age if permanently disabled, and not provide more than half of their own support. A qualifying relative can be a parent or other relative, or someone who lived with you all year, whose gross income is below a yearly limit and for whom you provide more than half of support. Dependents generally must be U.S. citizens, nationals or residents of the U.S., Canada or Mexico. Claiming a dependent can make you eligible for the child tax credit, the credit for other dependents and head of household status.
Example
A worker who pays more than half the support of a 70-year-old mother with little income may claim her as a qualifying relative and receive the $500 credit for other dependents.
Illustrative numbers only. Your situation will differ.