Oregon Tax Consultants Practice Exam

What is the relationship test needed for considering someone as an Other Dependent?

1. They must have a blood relation

2. They need to live with you for more than half the year

3. They must be a distant relative

4. They need to provide for their own support

The correct answer is: They need to live with you for more than half the year

To consider someone as an Other Dependent for tax purposes, the requirement is that they need to live with you for more than half the year. This provision is crucial because it establishes a significant level of support and involvement in each other's lives, which is a cornerstone of qualifying as an Other Dependent under tax law. The residency requirement ensures that the taxpayer has a close, supportive relationship with the dependent, reflecting the idea that the taxpayer is responsible for the dependent's living situation. This can include step-siblings, foster children, or other related individuals who do not fit neatly into more traditional definitions of dependents but still rely on the taxpayer for support or shared living arrangements. This aspect of the relationship test highlights the importance of the day-to-day interactions and contributions that create a dependency, making it a valid criterion for qualifying as an Other Dependent in the context of tax deductions and credits.