How Much Money Can a Dependent Make & Still Be Claimed on Income Taxes?
Image: Bigstock
If your child, parent or partner earned money this year, you can still claim them on your tax return. A dependent can earn income and still be claimed, but how much they can make depends on whether the IRS considers them a qualifying child or a qualifying relative. Understanding that distinction can save you thousands of dollars in credits and deductions.
The rules are not new, but income limits, credits and tax law tweaks for 2025 make it especially important to get this right.
Two Types of Dependents That Matter
The IRS recognizes only two categories of dependents — qualifying children and qualifying relatives. Each comes with different income rules and this is where many taxpayers get tripped up.
A qualifying child is usually your son, daughter, sibling or similar relative who is under age 19 or 24 if they are a full-time student. There is no age limit if the child is permanently and totally disabled. A qualifying relative typically includes older children who no longer meet the age test, parents, grandparents, other relatives, or even a domestic partner who lives with you.
Both categories require that you provide more than half of the person’s total financial support and they meet residency, citizenship and filing rules.
How Much Can a Qualifying Child Earn?
A qualifying child can earn an unlimited amount of income and still be claimed as a dependent. The key rule is not income, but support.
As long as your child does not pay for more than half of their support, you can still claim them. That means a college student with a high-paying internship or a teenager working full-time in the summer may still qualify if you cover most of their living, food, tuition and other costs.
This is why many parents can still claim working college students, even when those students file their tax returns.
Income Limits for Qualifying Relatives
Qualifying relatives are different. If you are claiming an adult dependent, such as an aging parent, an older child, or a domestic partner, their income matters a lot.
For the 2025 tax year, a qualifying relative must have a gross income of less than $5,200. That threshold is up from $5,050 in 2024. Certain income, such as some Social Security benefits, may be excluded when calculating this limit, but wages, interest and other taxable income generally count.
You must also provide more than half of their total financial support for the year. This income limit is often the biggest obstacle to claiming an adult dependent.
Filing Status & Other Deal Breakers
Even if income rules are met, a few other tests can disqualify a dependent. Generally, you cannot claim someone who is married and files a joint tax return, unless they are filing jointly only to get a refund of withheld taxes.
Only one taxpayer can claim a dependent. If two people try to claim the same child, the IRS applies tiebreaker rules based on residency, income and relationship. This commonly affects divorced parents and blended families.
You also cannot claim a dependent if you yourself can be claimed as someone else’s dependent.
What Tax Breaks Dependents Unlock
Claiming a dependent can unlock some of the most valuable tax credits available.
Parents with qualifying children may qualify for the Child Tax Credit worth up to $2,200 per child under age 17 in 2025, along with the Additional Child Tax Credit, which is partially refundable. The Earned Income Tax Credit can be worth as much as $8,046 for families with three or more children.
If you pay for daycare or care for a dependent while working, you may qualify for the Child and Dependent Care Credit. Education credits, such as the American Opportunity Tax Credit and Lifetime Learning Credit, may also be available for expenses paid for dependents in school.
For qualifying relatives, the Credit for Other Dependents offers up to $500 per dependent. You may also be able to deduct medical expenses you paid on their behalf, subject to income limits.
Does a Dependent Still Need to File a Tax Return?
Being claimed as a dependent does not automatically mean someone can skip filing a tax return. A dependent generally must file if their earned income exceeds the standard deduction for dependents or if their unearned income, such as investment income, is over a much lower threshold.
Even when filing is not required, dependents often file anyway to claim a refund of taxes withheld from paychecks.