Gross-income test

Gross-income test,

Definition of Gross-income test:

  1. The gross-income test is one of the five necessary tests that dependents must pass before they can be claimed as such in the United States. The gross-income test mandates that dependents cannot earn more than a certain amount of income each year. Furthermore, this test only applies to potential dependents that are over the age of 18 or over the age of 23 if the candidate in question is a full-time student.

  2. The amount that a potential-dependent can earn is indexed for inflation each year and consequently fluctuates periodically. For 2019, for example, the limit was $4,200. This is a spike from the 2015 threshold of $4,000, and the 2008 limit of $3,500. Because of periodically shifting numbers, it's vital for individuals to make certain they base the test on the correct, up-to-date figure, before moving on the other four dependency tests. If an individual fails the Gross Income Test or any of the other qualifying relative dependent metrics, he or she may not claim that dependent for purposes of the personal exemption. And in order to claim a dependency exemption for a qualifying child, a series of qualifying child dependency tests must be met. There's no age limit for a qualifying relative, and if you are entitled to claim an exemption for a dependent, said dependent might not claim a personal exemption on his or her own tax return.

  3. One of five required tests that a child must pass before being claimed as a dependent in the U.S. The child must be under a certain age (normally 18, but up to 23 if a fulltime student), and cannot have earned more than the dependency exemption for that year ($3,700 in 2011).

Meaning of Gross-income test & Gross-income test Definition