What is a dependent in tax terms?

In tax terms, a dependent is defined as someone whose personal exemption can be claimed on another individual's tax return. This typically includes qualifying children or qualifying relatives who meet certain criteria set by the IRS, such as age, relationship, residency, and support tests. When a taxpayer can claim someone as a dependent, it often allows for various tax benefits, such as a higher standard deduction or eligibility for certain credits, making this definition crucial for tax filings.

The other options do not accurately describe a dependent in the context of tax law. For instance, a person who can file their own tax return typically exceeds the qualifications of being a dependent, as dependents are usually minors or other individuals under specific circumstances who do not file independently. Additionally, a person residing outside the country isn't inherently classified as a dependent, as residency is just one of the multiple criteria that determine dependency status. Lastly, not all relatives qualify as dependents; specific tests must be met for a relative to be considered a dependent. Understanding these differences is pivotal for correct tax filing and maximizing potential deductions.