Registered Tax Return Preparer RTRP Practice Exam

The correct choice reflects that for an individual to qualify as a Qualifying Relative, their gross income must be less than the exemption amount established by the IRS. This threshold is crucial because it helps define who can be considered a dependent for tax purposes. If an individual's gross income exceeds this amount, they cannot be claimed as a Qualifying Relative, regardless of other considerations such as support received or relationship to the taxpayer. The exemption amount sets a clear standard, ensuring that only those who actually need support can be classified as dependents. Understanding this threshold is important for tax preparers to ensure compliance and optimize tax benefits for their clients.