Registered Tax Return Preparer RTRP Practice Exam

For tax purposes, a dependent is defined as a qualifying child or relative that can be claimed by a taxpayer for various tax benefits, such as the child tax credit, dependent care credit, and earned income tax credit. This classification allows the taxpayer to access specific deductions and credits that can significantly reduce their taxable income.

A qualifying child must meet several criteria, including age, residency, relationship, and support tests, which determine if they can be claimed. Similarly, qualifying relatives must also meet certain conditions, including income and relationship tests. By encompassing both the qualifying child and qualifying relative criteria, the definition captures a broader range of individuals who can legally be claimed as dependents on a tax return.

The other choices do not adequately define a dependent as it relates to tax benefits. Merely living in the taxpayer's home does not automatically qualify someone as a dependent; they must meet specific IRS criteria. Individuals over 18 years old may not qualify as dependents under the qualifying child category and are only eligible as qualifying relatives if they meet the income and support requirements. Lastly, limiting dependents strictly to children under 18 fails to capture dependents who might be older but still meet the IRS criteria, such as students or disabled individuals. Therefore, the comprehensive definition of