Who qualifies as a dependent for tax purposes?

The correct answer points to a person who is financially supported and can be claimed to reduce taxable income. For tax purposes, a dependent is typically someone who relies on you for financial support, which can include children, spouses, or other relatives who meet certain criteria set by the IRS. By claiming a dependent, you may be eligible for various tax benefits, such as exemptions, credits, and deductions that can lower your overall tax liability. This definition emphasizes the importance of financial support, which is the key factor in determining who qualifies as a dependent.

In contrast to this definition, a business partner does not fit the criteria since dependents are usually individuals you support financially, not business associates. Someone who is self-sufficient clearly does not need financial support, thus they cannot be classified as a dependent. A relative who is not supported financially similarly does not meet the criteria, as dependents must have some level of financial dependence on the taxpayer. Therefore, only individuals who rely on the taxpayer for financial assistance can be claimed as dependents for tax purposes.