Can a child under 18 be claimed as a dependent if their income is solely from investments?

Study for the VITA Tax Basics Exam. Get prepared with flashcards, multiple choice questions, hints, and explanations. Be ready for your test!

A child under 18 can indeed be claimed as a dependent, but specific criteria must be met regarding their support. The correct understanding aligns with the requirement that dependents cannot provide more than half of their own support to qualify. If a child’s income is solely from investments, it does not automatically disqualify them; however, if that income exceeds the threshold for providing their own support, they cannot be claimed.

In this case, the option highlights the essential requirement that a dependent child must not provide more than half of their own support to be eligible for claims. If their investment income is large enough to exceed the support threshold, they cannot be counted as a dependent. Therefore, the correct answer emphasizes that the determination of dependency hinges on the source and amount of support provided by the child.

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