VITA Tax Basics Practice Exam

The statement about only those providing more than half support being eligible is accurate because the IRS has specific guidelines for claiming a dependent. A qualifying relative must not only be related to the taxpayer but also rely on the taxpayer for more than half of their financial support during the tax year. This requirement ensures that the person being claimed is genuinely dependent on the taxpayer’s resources.

When claiming a relative as a dependent, it’s important to understand the support test. If the grandmother receives more than half of her support from the taxpayer, she qualifies under the dependent criteria. This rule applies regardless of whether the relative lives with the taxpayer, which is addressed by the other choices.

The other options imply limitations on what constitutes eligibility, such as requiring the relative to live with the taxpayer or that support must come solely from relatives, which do not align with the broader criteria established by the IRS for dependents. Hence, the requirement about providing over half of the support is central to validating the claim.