Gross-Income Test
Categories: Accounting, Company Management
If you’re trying to claim a dependent on your taxes, that dependent is, uh...dependent on the gross-income test.
One of five tests dependents must pass in order to be claimed as a dependent, the gross-income test requires that a dependent’s gross income is not more than a certain amount (which varies as inflation and wages and prices make everything go up). In 2019, that amount was $4,150.
Which means that, if your kid made $4,151 dollars working as a part-time puppy-petter this year, you can’t claim him as a dependent on your taxes. More puppy-petting time off the clock next year.