Investments glossary

Qualifying Relative

A qualifying relative is a person designated by federal income tax code to be allowed to be claimed as a dependent by a taxpayer assuming the taxpayer provided considerable financial support for the qualifying relative during the tax year. Claiming a qualifying relative as a dependent will allow the taxpayer to take an additional exemption, which will reduce their taxable income dollar for dollar. A qualifying relative does not have to be biologically related to the taxpayer.1

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