Intuit Academy Tax Practice Exam

What is one of the tests that must be satisfied for a taxpayer's child to be considered a qualifying child?

1. Support Test

2. Income Test

3. Dependency Test

4. Relationship Test

The correct answer is: Relationship Test

To determine whether a taxpayer's child qualifies as a qualifying child, the relationship test is crucial. This test stipulates that the child must be the taxpayer's biological child, stepchild, adopted child, or a foster child, and they must reside with the taxpayer for more than half of the year. Successfully meeting this criterion is essential for claiming tax benefits such as the Child Tax Credit. By confirming the relationship, the Internal Revenue Service (IRS) ensures that tax benefits are provided to individuals who have a significant familial bond with the child in question. Other tests, like the support test, income test, and dependency test, while important in the overall assessment, are secondary to establishing the foundational relationship between the taxpayer and the child. These tests evaluate factors like financial support and income levels, but without passing the relationship test, the child cannot be classified as a qualifying child for tax purposes.